Govt to cut Rs 15 bn on PSDP

Islamabad: To ease the increasing budget deficit the government has cut Rs 15 billion on the current year Public Sector Development Programme (PSDP). While at the start of the current fiscal year there was operational shortfall of Rs 35 billion for the current PSDP allocations, officials told Daily Times here on Saturday.

They rejected the news that the government had withdrawal Rs 50 billion from Public Sector Development Program (PSDP) and informed that the cut if only Rs 15 billion.

They clarified that there would be no cut in the ongoing projects financed by the current fiscal year’s development budget and all those development projects, which were to be completed till June 2008, would be fully financed.

The current year PSDP having total 2,119 projects including new and ongoing development projects were worth Rs 335 billion for the current year 2007-08, official added.

However, the officials said funds have been withdrawn from the projects that have not started up till January this year. Several projects had exhibited slow progress in the past six months (July to December 2007) and would be financed according to their progress.

Keeping in view recent power shortfall, the government has decided to give top priority to all power related ongoing projects. The government would fully finance all power projects, the officials maintained. The Cheshma-II Nuclear power project would be completed seven months before its schedule time and it would also be financed completely, they maintained.

Funding to the mega infrastructure projects, which were important for development of the country, would also continue, they added. They said the Planning Commission had withdrawn the financing from PSDP allocation on the demand of president to reduce the budget deficit.