ZAHEER ABBASI

ISLAMABAD: The federal government has projected a saving of Rs182 billion in the allocation of provincial development budgets for the current fiscal year and estimated 5.5 percent budget fiscal deficit on the premise of saving.

Sources said as per revised budget estimates for the current fiscal year, provincial development budget was estimated at Rs930 billion for the current fiscal year as opposed to Rs1,112 billion earmarked in the budget and consolidated fiscal deficit was premised on the revised estimates. However, sources on condition of anonymity added that achieving upward revised estimates seems challenging.

They added that a saving of Rs94 billion is estimated from development allocation for Punjab government for the current fiscal year, Rs39 billion saving from allocation for Sindh government, Rs31 billion saving from Khyber Pakhtunkhwa and Rs17 billion saving in development spending is projected from allocation of Balochistan government. An official said that delay in transfer of provincial share from revenue collection in divisible pool may be one of the factors for projecting saving in development spending by the provinces.

The development budget of Punjab government has been revised down from Rs574 billion to Rs480 billion for the current fiscal year, Sindh government from Rs237 billion to Rs198 billion while development allocation of Khyber Pakhtunkhwa was revised down from Rs193 billion to Rs162 billion and development allocation for Balochistan government was revised downward to Rs89.20 billion from Rs106.752 billion for the current fiscal year.

The federal assistance for Punjab development program was slashed to Rs110 billion from Rs125 billion and less provincial contribution for the province to Rs369 billion from Rs448 billion. However cash assistance for Punjab was increased to Rs20.803 billion from Rs8.5 billion

The federal assistance in Sindh development program was decreased from Rs43 billion to Rs27 billon and less provincial contribution was contracted to Rs171 billion from Rs193 billion.

The federal assistance for Balochistan development program was decreased from Rs6 billion to Rs5 billion and less provincial contribution was decreased to Rs83 billion from Rs100 billion.

However, federal assistance for Khyber Pakhtunkhwa development program was increased to Rs31 billion from Rs29 billion but less provincial contribution decreased to Rs131 billion from Rs164 billion.