The caretaker government on Wednesday decided to devise a plan to cut down development budget, under which the federation and the provinces would determine the projects’ priority and provide suggestions for reducing the budget.
A meeting was held under the chairmanship of the interim finance minister Dr. Shamshad Akhtar, in which the provincial finance ministers, other relevant ministers and officers participated through video link.
The meeting reviewed utilization of the development budget to control prices of essential commodities and improvement of facilities in the education and health sector, and provision of relief to the people through social security.
The interim finance minister has called upon provincial administrations to take decisive measures to curb inflation. Emphasizing the importance of fostering improved cooperation between the federal and provincial entities for economic growth and long-term sustainability, the minister stressed the need to narrow the gap between wholesale and retail prices. Achieving price stability is paramount, and it is incumbent upon the provinces to bolster efforts in ensuring both food security and social welfare while enhancing service delivery.
She pointed out that there is an opportunity to streamline government spending between the federal and provincial levels. Ensuring the provinces effectively execute development initiatives, including those related to social welfare, is essential. These corrective actions have the potential to enhance the healthcare and education sectors while conserving valuable financial resources.
Ms Akhtar directed the provinces to prepare a priority list of federally funded projects and said that the provinces should achieve revenue targets to meet the primary budget deficit.
The provinces also pledged their commitment to combating inflation and ensuring the enforcement of fiscal discipline to achieve the budgetary goals.
On the other hand, sources with knowledge of the matter have revealed that a plan to trim the development budget is currently under consideration. Both the federation and the provinces will collaboratively determine project priorities and provide recommendations for budget reductions.
