The Federal Government is likely to impose a cut of up to Rs. 100 billion on the Public Sector Development Programme (PSDP) 2022-23. PSDP is the key government expenditure that impacts growth rate directly.
To help the flood-affected areas with additional funds, the Planning Commission is evolving a mechanism for imposing cuts of up to Rs. 100 billion in public development programs, an official source told Propakistani.
There are three components of the Federal Developmental Outlay which include the rupee component, the Foreign Exchange Component(FEC), and allocations for the Viability Gap Fund (VGF). Under the plan, the fast-moving, important and new PSDP projects are likely to be exempted from the cut while the slow-moving and less important projects will face the brunt, the source said.
The Planning Commission will ask the Ministries/Divisions to identify the slow-moving/less important projects in this regard, the source added.
However, it has yet to be decided to whom the PSDP fund will be surrendered, the source said adding that fund can be surrendered to the Prime Minister Flood Relief fund, Finance Division, or to Accountant General.
The total allocations of the federal development outlay (PSDP) during the current fiscal is Rs. 800 billion, while provincial development outlay (ADPs) is Rs 1.463 trillion. The federal PSDP of Rs. 800bn which includes Rs. 73 billion as VGF/PPP and Rs. 60 billion FEC.
