The federal government has decided to allocate Rs1.126 trillion for development spending in the upcoming fiscal year, with Rs70 billion earmarked for parliamentarians’ development schemes under the Sustainable Development Goals (SDGs) programme, sources said on Tuesday.

According to officials, the approval was granted during a meeting chaired by Prime Minister Shehbaz Sharif on the Public Sector Development Programme (PSDP).

Sources said up to Rs820 billion could be utilised on development projects during the current fiscal year.

The prime minister directed relevant authorities to ensure that no cuts are made to the development budget in the next fiscal year and that allocated funds are fully utilised.

Officials said the government had decided to increase development allocations in view of the available fiscal space.

Various ministries and divisions had submitted proposals for more than 286 new development projects, sources added.

Estimates suggest the total size of the development budget for the next fiscal year could reach around Rs1.11 trillion.