The new federal budget constitutes a substantial increase in funds of almost Rs1.033 trillion; Rs865.4 bn from the FDP and Rs168 bn in straight transfers from the federal government. Shares of Punjab, Sindh and Khyber Pakhtunkhwa (KP) and Balochistan provinces from the FDP are projected to stand at Rs436.8 bn, Rs207.8 bn, Rs138.6 bn and Rs38.0 bn respectively. Straight transfers will further add to their shares. This increase has created sufficient fiscal space for the provincial governments to fulfill their obligations towards infrastructure and social sector development, apart from meeting current and annual development expenditures.
(...) Social sector and infrastructure development have hardly been given due priority by the provincial governments... With the transfer of fiscal powers and responsibilities to the provinces, the need to adopt social sector and infrastructure development strategies catering to the financial needs of the people will become more pronounced.