With more funds to be made available under the 7th National Finance Commission (NFC) award, the province would have a larger fiscal space to finance an enlarged development programme.
The budget is expected to be a 'balanced' one after five year's of consecutive fiscal deficits and its annual development programme (ADP) funded by federal and foreign assistance.
Balochistan's share in the federal divisible pool has been increased to 9.09 per cent from 5.3 per cent. Up to 50 per cent increase is expected in the ADP for fiscal year 2010-2011.
While the province will get an enhanced share in the new NFC award, it will have to bear the entire cost of ongoing projects from its own resources, as the federal government will transfer the provincial projects in the PSDP to the provinces.
The province will get arrears out of the Gas Development Surcharge (GDS). With more resources in hand, compared to the past, the economic managers in Quetta are presently setting priorities for making allocations to different sectors of the provincial economy.
Efficient management of resources has become an important issue. The provincial government has chalked out a strategy for efficient utilisation of resources for ensuring a better return.
Top priority is being accorded to the development of education sector, mining, oil and gas exploration, agriculture, livestock, fisheries and infrastructure. In the outgoing fiscal year, only 0.24 per cent of provincial PSDP had been allocated for livestock, 0.6 for mining, 0.22 for fisheries and one per cent for agriculture.
The development of agriculture, livestock, fisheries and mining can play an important part in alleviating poverty, as over 80 per cent of local population earns its livelihood from these sectors. But the federal government has decided to eliminate power tariff subsidy on agriculture tube wells from fiscal year 2010-11. Power would be more expensive for the farming community.
The province plans to improve the education sector which has suffered years of neglect. Education Minister Tahir Mehmood Khan has indicated that more funds will be earmarked to improve education system, particularly at the primary level.
The province has 11,000 schools with 5,000 at primary level. The 80 per cent of these schools lack boundary walls, drinking water facilities. There are no chairs and mats for students.
Absenteeism or non-availability of teachers at schools is common. In Quetta alone 590 posts of teachers are lying vacant. Under Aghaz-e-Haqooq-e-Balochistan package, tests and interviews are underway to recruit 5,400 teachers.
The development of oil, gas and mineral sector would be top priority in the next fiscal year. The mineral-rich province plans to invest in major oil, gas and mineral exploration companies. It plans to apportion a sizeable amount to buy major stakes in the Pakistan Petroleum Limited (PPL), the Oil and Gas Development Company (OGDCL).
The provincial authorities also want to become major share holder in Gwadar Port and Gwadar Free Trade Zone.
The province plans to take control of its copper and gold assets, worth billions of dollars, from the foreign mining firms. It has cancelled a deal with Tethyan Copper Company (TCC) for Reko-Diq Copper and Gold project in Chagai district. The province plans to manage the Reko-Diq project and has obtained an approval of PC-I from CDWP for setting up a refinery at the site at an estimated cost of Rs8,698 million. The refinery is estimated to process 15,000 tons ore per day.
Similarly, China's 10-year lease contract for mining of Saindak copper and gold deposits in Chagai is expiring in October next year. The provincial government will take control of Saindak copper mine to which the federal government has agreed to.
Sizeable allocations are likely to be made in the coming budget for these mega copper projects.
The provincial government will also increase spending on improving law and order to attract foreign and local investors.
