Charter of the Economy 13.2. Federal Development Expenditure Development expenditure has been squeezed by the fall in the tax-to-GDP ratio and the big increase in the share of debt servicing liabilities at the Federal level in current expenditure. The budget deficit, without the inclusion of development expenditure, was 2 percent of the GDP in 2014-15. In 2019-20, it had risen sharply to 5.5 percent of the GDP. Consequently, there had to be a big cut in actual spending compared to the allocations in the budgets of 33 percent at the Federal level and 22 percent in the case of Provincial Governments in 2019-20. The distribution of Federal PSDP spending among economic infrastructure, social services and special region projects is given in Table 13.2. Given the allocation of functions, the Federal Government has focused on trunk infrastructure related to energy, water resources and transport. Consequently, the share of economic infrastructure has risen from 38 percent in 2009-10 to 53 percent by 2019-20. However, the Federal PSDP for 2020-21had proposed to bring this share down to 44 percent. Table 13.2: Sectoral Spending from The Federal PSDP Sector 2009-10 (R.E) Share (%) 2014-15 (R.E)* Share (%) A. ECONOMIC INFRASTRUCTURE 114.5 38.2 303.5 56.0 A.1. Energy 35.1 108.5 • Atomic Energy 21.1 59.3 Commission • NTDC/ PEPCO 14.0 49.2 A.2. Transport 509 • Railway 14.0 149.0 39.6 • National 36.9 Highway Authority 109.4 A.3. Water Resources 28.5 46.0 B. SOCIAL SERVICES 49.0 16.3 53.8 9.9 B.1. Higher 18.5 25.0 Education Commission B.2. Food Security 12.0 1.0 B.3. Health 18.5 27.8 C. SPECIAL REGIONS 23.7 7.9 41.2 7.6 2019-20 (R.E)* 283.5 70.3 26.0 44.3 38.4 9.0 129.4 74.8 44.0 28.5 7.4 8.1 53.4 Share (%) 53.2 (Rs in Billion) 2020-21 Share (B.E)(%) 287.0 44.1 63.0 23.3 39.7 142.7 24.0 118.7 81.3 8.2 56.0 8.6 29.5 12.0 14.5 10.0 100.4 15.4 132