ISLAMABAD - The government has released meager amount Rs 16 billion for the public sector development programme (PSDP) during first five weeks (July-August 8) of the ongoing financial year 2014-15, which is only three percent of the overall development budget.
The government has released only Rs 16.01 billion for the PSDP during first five weeks (July-August 8) of the ongoing financial year 2014-15. The break-up of Rs 16.01 billion showed that government has given Rs 10 billion for the federal ministries, Rs 5.5 billion for the special areas and Rs 500 million for the Earthquake Rehabilitation and Reconstruction Authority (ERRA).
Sources in Finance Ministry informed that government releases lesser amounts for PSDP in the early months of the financial year, which accelerated with the passage of the year. They added that government releases 20 percent each in first quarters and 30 percent in last quarters of the fiscal year.
The government has released the funds from its own resources, as there is no contribution of foreign aid in the release amount during first five weeks of the ongoing fiscal year.
According to the details, the government has released funds for developmental projects of only six federal ministries/ divisions while it has failed to release a single penny for rest of the 31 ministries during first five weeks (July-August 8) of the ongoing financial year 2014-15. Similarly, the government did not release funds for corporation like National Highway Authority (NHA) and WAPDA (power). The government also ignored special areas, as it did not release funds for Azad Jammu and Kashmir, Gilgit Baltistan and FATA. Meanwhile, the government did not release funds for the two new recent programme announced in the budget, i.e. Pakistan MDGS and community development programme and special federal development programme.
The break-up of Rs 10 billion revealed that government has spent Rs 72.6 million on developmental projects of Commerce Division. Similarly, the government has spent Rs 176 million for Finance Division. Meanwhile, the government has spent Rs 581.37 million on development projects of Interior. Similarly, the government has spent Rs 148 million on developmental projects of National Health Services Regulations and Coordination Division and Rs 9.02 billion for Pakistan Atomic Energy Commission and Rs 17.98 million for Ministry of Planning Development and Reforms.
It is worth mentioning here that the overall volume of the national development is Rs 1175b including a federal PSDP of Rs 525 billion and provincial annual development plans of Rs 650 billion for next fiscal year 2014-15. The size of federal PSDP worth of Rs 525b for next financial fiscal year 2014-15 would be 23 percent higher than the revised development programme of Rs 425 billion of the outgoing financial year 2013-14. The break-up of Rs 525 billion revealed that Rs 422.78 billion would come from government’s resources and Rs 102.22 billion from foreign aid.
Finance Minister Senator Ishaq Dar had informed the media other day that spending on public sector development programme had exceeded than the target, as government spent Rs 441 billion on PSDP against the target of Rs 425 billon during previous fiscal year 2013-14.