ISLAMABAD - The Pakistan Tehreek-e-Insaf (PTI) government has come up with the idea to slash developments funds in order to save at least Rs 250 billion for the national exchequer.
Federal government to slash federal development programme to around Rs775 billion from Rs1,030 billion set by the previous government in its budget.
This move would allow the government to save around 25 percent or Rs250-Rs255 billion, a senior official said.
During the first two months of current FY19, the Planning Commission has disbursed Rs35 billion for development projects, around 75 percent lower than Rs175 billion in the corresponding period of 2017.
A chunk of this saving would be utilized to raise allocation to the water sector on a priority basis and the remainder would be kept for deficit financing, the official shared.
In the budget presented for FY19 by the previous government, Rs80 billion have been allocated for the water sector, which was deemed insufficient considering the challenges surfacing in the sector.
According to the senior official, many of the non-development projects included in the Public Sector Development Programme 2018-19 by the previous government would face an axe.
Besides, the newly installed PTI government is expected to add its own priority projects in the PSDP 2018-19.