Lahore - Keeping its tradition alive, the provincial government failed this year too to consume the full share of the Annual Development budget, as it could utilise Rs 224 billion only out of the total amount of Rs 409 billion allocated in the budget 2015-16 for the Annual Development Programme (ADP). Officials said the provincial government had already slashed the ADP for the FY 2015-16 by around 15 per cent to divert funds for attracting the voters through other schemes, including Orange line metro train. They said that out of total Rs409 billion, the ADP was curtailed by 15 percent and the Planning and Development Department, after detailed inspection, approved Rs340 billion. However, the finance department could release Rs329 billion so far, out of which Rs224 billion have been spent during the last 10 months of current fiscal year.

It is to be noted that the provincial government, during the first 10 months of last fiscal year of 2014-15 could consume only Rs176 billion of its development budget of Rs345 billion, showing less than 60 per cent utilization of the total ADP.

After the 3rd quarter review of the ADP, the government decided that all the unapproved schemes should be sanctioned by the competent forum immediately so that the maximum utilisation of the allocated funds could be ensured. It decided that the departments concerned would ensure that their monthly progress reports, containing all schemes should be regularly received in the P&D department after reconciliation with the Finance Department. The departments were directed to make full efforts to gear up the utilisation of funds already released. The government further directed the departments concerned to cap the slow-moving projects and divert the funds to the fast-moving schemes so that the funds could be used by the end of the fiscal year; however, all this effort resulted in the consumption of Rs 224 billion only. Sources said the government was likely to increase the allocation for ADP to Rs 445 billion in 2016-17 from the last year’s level of Rs 409 billion. Officials said that South Punjab, education and health sectors would be the major gainers of the budget.

They said that building of roads would also be prioritized in the coming budget and with allocation of Rs 70 billion in the recommended development budget while Rs 50 billion will go for allocation of Farmer’s Package. The education sector is likely to get Rs 42 billion, Rs 16 billion for urban development and Rs 32 billion for transport and communication.

This year also the government’s focus remained on projects of roads and communication works, as it continued mega project of rural roads development, which was started at the end of the last fiscal year. The officials said that that ADP will have to revise down the funds allocation as the number of departments did not have capacity to utilize whole amount of allocated development funds. The downward revision is also possible as the federal government revenue collection is falling and it has already revised Federal Board of Revenue (FBR) collection target. Similarly, the Punjab government will be unable to meet its provincial revenue generation targets, leading to reduction in the size of its ADP. It is to be noted that experts have been expressing concern over inability of the government to address power crisis for the last three years and advised it to divert funds from roads to energy to end a roadblock affecting nearly 6 per cent of economic growth.

According to them, the government did not have a concrete plan to address the power crisis and its policy response was focused only on increasing installed capacity instead of removing past mistakes which have brought the power sector to this stage.

Former finance minister Dr Salman Shah said the gaps still existed in policy and governance. Decision-makers neither know the factors behind the power crisis, nor have they been unable to address them.