Development budget cut by over Rs1 trillion for next fiscal year, sources

The national development budget for the next fiscal year has been reduced by Rs1.046 trillion, with authorities approving a total allocation of Rs3.669 trillion, according to official sources.

The approved outlay is significantly lower than the Rs4.715 trillion development budget proposed earlier by the Annual Planning Coordination Committee (APCC), sources said.

Sources said the provincial development budget has been approved at Rs2.218 trillion, compared with the earlier proposed allocation of Rs3.138 trillion, reflecting a reduction of around Rs920 billion.

The federal development budget has been approved at Rs1 trillion, down from the Rs1.126 trillion proposed by the APCC, according to the sources.

Officials said the revised allocations were finalised as part of efforts to align development spending with available fiscal resources and broader budgetary priorities for the upcoming financial year.

In addition to federal and provincial development spending, Rs451 billion has been earmarked for investment in state-owned enterprises, sources said.

The development budget is a key component of the government's economic strategy and finances infrastructure projects, public services, social sector initiatives and other development schemes across the country.

The approved allocations are expected to be formally reflected in the federal budget for the next fiscal year, which is scheduled to be presented before Parliament this week.