The Federal Cabinet has approved Rs.873 billion development budget for the next financial year 2012-13 out of which Rs.513 billion has been allocated for provincial whereas Rs.360 billion for federal development budget. The National Economic Council (NEC) has already approved the development budget in its meeting held on May 24, 2012. The federal PSDP would amount to Rs 360 billion. Ministries and divisions have formulated their own development priorities while remaining in their approved ceilings and adopting guidelines of the Planning Commission and the Finance Division. Emphasis has been laid on completion of ongoing priority projects during 2012-13. New projects would be discouraged as they may cause thin spread resource allocation resulting in time/cost overrun. It was ensured that foreign assistance was not underestimated. In the total approved PSDP 2012-13, the size of foreign assistance has been estimated at Rs 100 billion. In compliance to Prime Minister’s policy guidelines, PSDP 2012-13 continues to place emphasis on completion of projects. Over 97 percent of resources have been allocated to on-going projects for their fast track completion. The National Economic Council had authorised Planning Commission to make necessary adjustment in the federal PSDP 2012-13 to ensure timely completion of projects. The government has planned to renew its efforts in ensuring effectiveness of the development spending to increase economic impact.

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