ISLAMABAD - The government has released almost 50 per cent of the overall allocation for the Public Sector Development Programme (PSDP) during the first seven months (July-December) of the ongoing financial year, as it has released Rs 108 billion in the said period against the total allocation of Rs 220.5 billion.
The PSDP for the current fiscal year has been budgeted at Rs.300 billion as against last year’s Rs.233 billion which indicates an increase of around 29 per cent. This level of PSDP (Rs 300 billion) contains Rs.36.5 billion as foreign project aid and Rs.263.5 billion as rupee component out of which Rs.33 billion has been provided under People Works Programme and Rs 10 billion is for the Earthquake Rehabilitation and Reconstruction Authority (ERRA). Releases by Planning and Development Division are made against the allocation of Rs.220.5 billion.
According to the official figures of the Planning Commission of Pakistan, the government has released Rs 108 billion for the PSDP during July-December 2011-2012 period, which is 49 per cent of the overall allocation of Rs 220.5 billion.
“Despite that government’s policy pursuing tight cash release policy to contain the fiscal deficit within the targeted level, but it does not slash the PSDP”, said a top official of the Finance Ministry while talking to The Nation. He further said that the level of federal PSDP might be increased due to additional allocation for some important projects/ programmes.
Meanwhile, according to the documents, the government has released Rs 107.5 billion for the PSDP during the five seven months of the ongoing financial year 2011-2012. According to the break-up of Rs 107.5 billion released during the period under review, the government has released Rs 63.4 billion for infrastructure against the overall allocation of Rs 157.5 billion. Meanwhile, the government has released Rs 43.2 billion for Social Sector against the overall allocation of Rs 129.2 billion and Rs 0.811 billion has been released for other sectors against the total allocation of Rs 3.3 billion for the whole financial year.