Rs800b proposed for PSDP in budget Top Story April 22, 2021 ISLAMABAD: The budget-making process for 2021-22 has kick-started as the Ministry of Finance has shared Indicative Budget Ceiling (IBC) with the Ministry of Planning for allocation of Rs800 billion for Public Sector Development Programme (PSDP) in the next budget 2021-22. “Yes, the Ministry of Finance has shared the IBC for allocation of development funds under the PSDP to the tune of Rs800 billion for the upcoming budget,” the official communication sent by the Finance Division to Ministry of Planning reads out here on Wednesday. The utilisation of development funds both at the federal and provincial levels remained pathetic during last two years. The Planning Commission released full funds for the fourth quarter (April-June) period of the outgoing fiscal year but the utilization failed to get momentum so far. It is yet to seen how the utilization of development funds will be geared up after Eid Ul Fitr. Out of the total allocated funds of Rs650 billion and release of the whole amount, the pace of utilization has been dismally slow and so far, utilization of funds stood at Rs370 billion. However, the Budget Strategy Paper (BSP) approved by the federal cabinet stated that development funds will be allocated by the Ministry of Planning, Development and Special Initiatives to priority sectors, including infrastructure, social, science, information technology and production. Infrastructure allocation takes precedence with allocation, especially in transportation and communications, including railways, national highways and ports.