Islamabad, June 12, 2020: The Federal government has cut the Public Sector Development Programme (PSDP) 2020-21budget by 18 percent for the next fiscal year (FY21).
The Public Sector Development Programme (PSDP) is the main instrument for improving the socio-economic conditions in the country and achieving the macroeconomic and development objectives and targets set by the government, which yield maximum benefits in the shortest possible time for the society.
For the year 2020-21, National Economic Council (NEC) has approved an overall size of PSDP at Rs 1,324 billion, which is 2.9 percent of Gross Domestic Product (GDP).
The Salient features of PSDP allocation for 2020-21 are as follows:
- The size of national PSDP estimated in the budget for 2020-21 showing decrease of 17.91 percent over budget estimates of 2019-20.
- Federal PSDP for the year 2020-21 has been kept at Rs 650 billion, which is lower by 7.27 percent than budget estimates of 2019-20.
- The share of Federal Ministries/Divisions in 2020-21 PSDP is Rs 418.676 billion which indicates an increase of 20.22 percent over budget estimates of 2019-20.
- The Corporations’ PSDP for 2020-21 has been placed at Rs 158.325 billion which is lower by 19.94 percent as on the budget estimates of 2019-20.
- An amount of Rs 70 billion has been allocated in the budget 2020-21 for Covid Responsive and other Natural Calamities Program.
- Earthquake Rehabilitation and Reconstruction Authority (ERRA) has been allocated Rs 3 billion in the budget 2020-21.
- The Provincial Development Programme for 2020-21 has been estimated at Rs 674 billion as against Rs 912 billion in budget estimates 2019-20, showing a decrease of 26 percent.
- The following Table-27 indicates details of the size of Public Sector Development Programme (PSDP).
Development Expenditure Outside PSDP 2020-21 Under the head of Development Expenditure Outside Public Sector Development Programme, an amount of Rs 70,000 million has been allocated in the budget 2020-21, reflecting an decrease of 18.40 percent over budget estimates 2019-20 and 6.35 percent over revised estimates 2019-20.