Budget 2024-25: PSDP gets massive boost

The government on Wednesday announced a Rs3.792 trillion national Public Sector Development Programme (PSDP) for fiscal year 2024-25, which represents a staggering 58 per cent increase from the Rs2.39tr to be spent under the head by the close of FY24. Of the total, Rs2.095tr has been allocated to provincial PSDP, compared to Rs1.56tr in the outgoing year. Of the remaining, Rs1.4tr will be spent on the federal PSDP, with another Rs100 billion on public-private partnerships, and Rs196.8bn will be spent by state-owned enterprises on various development projects. The federal PSDP of Rs1.5tr is much larger than the Rs1.221tr approved by the Annual Plan Coordination Committee (APCC), led by Deputy Chairman of Planning Commission Jehanzeb Khan, a few days ago. Provincial demands also seem to have been entertained, resulting in the higher PSDP allocation.