CDA likely to cut development allocations in next budget

[Salman]

CDA likely to cut development allocations in next budget

ISLAMABAD: The Capital Development Authority (CDA) is likely to present a budget of Rs25 billion for the next fiscal year, which will be 26 per cent less than the current year’s Rs33.98 billion.

Sources in the CDA said the major cut would be made in the development budget which was likely to be around Rs12 to Rs13 billion against Rs20.90 billion in the current year as the actual spending had been very low.

“The non-development expenditures will also be reduced to make the budget realistic,” said a senior official of the civic body.

“Some of the projects in the current budget were the development of Park Enclave and running of streetlights on solar energy. However, they could not be initiated as their PC-1 was still being prepared,” the official added.

The management of the civic agency has decided to include small and medium projects in the next budget and request the federal government to finance mega projects.

“Take the example of the Islamabad section of the metro bus project, which is being sponsored by the federal government. The same is the case with the Kashmir Highway expansion project,” the official said.

However, it has been decided that key housing projects will be completed with the allottees’ money.

The current year’s budget highlighted that the CDA would spend Rs14.64 billion on ongoing and Rs4.5 billion on new development projects from own sources but it could not generate the amount.

Similarly, a sum of Rs7 billion had been allocated in the 2013-14 budget for the development of Sector I-15, C-15 and C-16, acquisition of land in Sector H-16, etc.. But the civic body could not make any significant progress in this regard, the official said.

The revenue generation was also likely to be rationalised in the forthcoming budget.

“Most of the revenue generation measures included increasing property tax and water charges but the focus will be on collections from land development, outdoor advertising and parking lots.”

Out of the target of Rs280 million, the directorate of municipal administration (DMA) has managed to collect Rs600 million.

“Our next year’s target is likely to be Rs1 billion and this is achievable,” said Director DMA Hamza Shafqat.

However, the ambitious plan of the CDA to collect the hefty amount from land development and other venues needs amendments to the existing rules and procedures.

The CDA has failed to harness the revenue collections from various sources, including fees and charges from high-rise buildings, private housing schemes, lease renewals and land use plan, etc.

Besides, the CDA expects that the federal government will allocate more than Rs3 billion for the development projects and maintenance of the federal government buildings in the federal budget.

Published in Dawn, May 28th, 2014