Gov’t increases PSDP allocations by 178% in 4 years

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ISLAMABAD, Jul 18 (APP): The current government during its 4
years’ incumbency, increased allocations for various sectors under
Public Sector Development Programme (PSDP) by 178 per cent.
According to sources in ministry of Planning, the government
has increased the PSDP allocations from Rs 360 billion in 2012-2013
to record high funding of Rs 1001 billion in 2017-18.
Similarly, development funds of all the provinces also rose
to Rs 1,112 billion for the current fiscal year, whereas during
2012-13, the funds stood at only Rs 515 billion.
“The main driver behind sharp rise in PSDP and provincial
development budgets has been the steady increase in revenues of the
federal government via better tax collection”, the sources said
adding that tax-to-GDP ratio has increased to 12.6 per cent for FY
2016 while in FY 2013, it was only 9.8 per cent.
Furthermore, the government has allocated Rs 411 billion for
infrastructure development in the current year, however during 2012-
13, the allocation for this sector was only Rs 142 billion, thus
showing an increase of 189 per cent during four years.
In higher education, the government has allocated Rs 35.662
billion under PSDP 2017-18 whereas back in 2012-13, the allocation
for this sector was only Rs 15 billion.
Similarly, to materialise inclusive development in the
country, significant funds are allocated for historically
disadvantages places.
Under PSDP 2017-18, a development fund of Rs 22 billion has
been set aside for Azad Jammu Kashmir (AJK) as compared to the
allocation of Rs 10 billion in 2012-13 which is an increase of 120
per cent during four years.
Likewise, a sum of Rs 15 billion is allocated for Gilgit-
Baltistan in this PSDP as compared to Rs 7 billion in 2012-13, thus
showing an increase of 110 per cent.
The PSDP allocation of Federally Administered Tribal Areas
(Fata) has been increased by 50 per cent during the corresponding
period as it rose from Rs 16 billion in 2012-13 to Rs 24.5 billion
in 2017-18.