Prioritizing Development Spending The big disappointment is that for the four Provinces the total combined ADP is only 1.3 percent of the national GDP. This is one of the fundamental reasons why the level of human development spending in Pakistan is so low, as the Provincial Governments are expected to play the primarily role in the provision of health and education. The success in achieving a degree of fiscal equalization through the 7 th NFC award is demonstrated by the higher share of ADP spending of the Gross Regional Product of the two smaller provinces, Balochistan and Khyber-Pakhtunkhwa. It is the highest in the former Province at almost 3 percent of the GRP. However, this Province has continued to show the lowest growth rate. This raises questions about the efficacy of development spending in the Province. There will be need for higher development spending by the Provincial Governments if the regional growth rates are to be enhanced and the level of human development raised. This will require more aggressive resource mobilization from Provincial revenue sources of the type described in Chapter 10. 13.4. Changing Development Priorities Given the resource constraints currently, too big a throw-forward and too many projects in the PSDP, some major recommendations are made below. Development Priorities and Economic Growth: Econometric analysis has been undertaken of the determinants of the growth rate of real per capita income from 1980-81 to 2017-18. Significant variables, along with the insignificant variables, are shown below. Significant and Insignificant Variables in the Determination of the Growth Rate of Real Per Capita Income Significant Positive Impact [YES/ NO] • Growth Rate of Agricultural Sector YES • Growth Rate of Private Investment YES • Growth Rate of Electricity Consumption per capita YES • Growth Rate of Availability of Water for Agriculture YES • Growth Rate of Length of Roads/ Highways NO • Growth Rate of Number of Telephones/ Mobile Phones NO • Growth Rate of Average Years of Schooling of Employed Workers YES The above results have fundamental implications on the shares of different sectors in PSDP allocations, as follows: 137