Finance asked to fast track review of PSDP funds

Tuesday, June 09, 2009

ISLAMABAD: Prime Minister Yousuf Raza Gilani has called upon the Ministry of Finance to expedite review of PSDP funds so as to ensure their maximum utilisation for timely completion of development projects. He also noted delay in the release of funds earmarked for the ministries for various development projects and directed the Ministry of Finance to ensure timely release of funds so that development programmes may not suffer.

The Prime Minister expressed these views while preisding over a meeting at the Ministry of Finance to review the forthcoming budget here on Monday and emphasised the importance of transparency to be observed in every aspect of financial transaction.

According to sources, the Prime Minister was briefed about the outlines of the budget for the fiscal year 2009-10, scheduled for announcement on June 13. The Prime Minister was told about the consolidated budget for the next fiscal year's amount to Rs 2.9 trillion, and Rs 1.4 trillion revenue collection, and measures to achieve the set target of revenue collection.

The Prime Minister said that macro-economic stability, widening of social protection net, promoting agriculture sector by increasing productivity and ensuring better return to farmers, industrial competitiveness by reviving the manufacturing sector through improved availability of energy supplies, better infrastructure and other incentives and infrastructure as well as social sector development are the priority areas before the government and all possible resources would be placed for achieving them.

He said that the Finance Ministry has the key role to maximise revenues for meeting financial demands of the various sectors of the economy. Therefore, the Ministry must enhance revenues streams from both tax and non-tax sources, as this is essential to provide more resources for development, relief and rehabilitation of IDPs, and meeting the defence and security needs of the country.

He emphasised that the forthcoming budget should incorporate pro-poor budgetary measures, and must reflect priorities of the present government. "The people have high expectations from the democratic government. Therefore, the budget must focus on meeting the very basic needs of the masses and their wellbeing," he added. He directed the Ministry of Finance that the budget speech should be in simple language so that it can be easily understood by the general public.

Underscoring the need to arrest inflationary trend, the Prime Minister said that high inflation is detrimental to the economy and the poor. He stressed that while launching various pro-poor growth generating initiatives, it must be ensured that inflation is kept within acceptable limits. He expressed confidence in the economic team that they would take necessary measures to revive growth and manage the economy in a professionally prudent manner.

The Prime Minister also underscored the need to avoid overlapping and duplication of work as this is not only waste of public money but also consuming precious time of the nation causing delay in the completion of projects. Advisor to PM on Finance, Shaukat Tarin, and Secretary, Finance, gave a detailed briefing to the Prime Minister on the forthcoming budget and the overall state of the economy in the country. Minister of State for Finance and Economic Affairs Hina Rabbani Khar was also present in the meeting.


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