There is a significant discrepancy of 50 percent in the releases under Public Sector Development Programme (Rs 456.4 billion) uploaded by Ministry of Planning, Development and Reforms on February 21, 2020 and actual utilization of development funds (Rs 230.57 billion) on 28 February, six days from today, circulated within the Ministry.
Business Recorder has a copy of the federal PSDP document that is circulated within the Ministry of Planning and which notes an amount that is 50 percent lower than what is claimed on the website. According to consolidated budgetary operation of federal and provinces released by the Finance Division, total PSDP releases stood at Rs 458 billion during the first six months of the current fiscal year - Rs 237.475 billion federal and Rs 219.3 billion provinces against the allocation of Rs 1613 billion. The federal PSDP releases for the first six months are around Rs 7 billion more than what the Ministry of Planning's internal document claims.
The containment of fiscal deficit during the first six months at 2.3 percent (Rs 994 billion) was partly due to slower PSDP disbursement of Rs 456.8 billion by federal government and provinces as well as provincial surplus (Rs 323 billion) and Rs 1.2 billion disbursement for social protection.
An official termed the discrepancy between releases and utilization as procedural gap, adding that relevant ministries and divisions and other departments are authorized by the Ministry of Planning and Development for PSDP releases as per laid down procedure but the actual utilization is reported when the amount is disbursed by Accountant General of Pakistan Revenue (AGPR).
Prime Minister Imran Khan reportedly took strong exception to the slow utilization of budgeted PSDP funds (Rs 701 billion) during a recent meeting and directed ministries/divisions to expedite utilization of PSDP funds. Sources said that fast utilization of PSDP funds at this point in time is very important to fuel growth and for job creation.
Under the criteria, PSDP releases are required to be made as follows: 20 percent in first quarter, 30 percent each in second and third quarter and remaining 20pc in the last one. However, PSDP releases of federal government during the first six months stood at around 33 percent. According to the latest data of PSDP 2019-20 released by the Ministry of Planning, Development and Reforms on Saturday, the government released Rs 191.3 billion (63 percent) including Rs 11.24 billion foreign aid for development projects of various ministries, divisions and related departments out of Rs 303.66 billion budgeted allocation.
The government also released a total of Rs 151.8 billion (77 percent) including Rs 70.85 billion (78.2 percent) foreign aid out of Rs 197.5 billion for development budget of corporations; Rs 140.4 billion including Rs 63.55 billion foreign aid for the projects of National Highway Authority (NHA); and Rs 11.42 billion including Rs 7.3 billion foreign aid for National Transmission & Despatch Company (NTDC)/ Pakistan Electric Power Company (PEPCO).
The ministry released a total of Rs 33.59 billion (75 percent) including Rs 2.35 billion foreign aid out of Rs 44.85 billion budgeted allocation for development projects of special areas; Rs 20.75 billion including Rs 1.52 billion foreign aid for development projects of Azad Jammu and Kashmir (AJK); and Rs 12.84 billion including Rs 833.934 million foreign aid for Gilgit-Baltistan for financial year 2019-20.
The ministry said that Rs 2.4 billion had been released for development projects of Federal Education and Professional Training Division out of Rs 4.796 billion budgeted allocation, and Rs 22.71 billion including Rs 83.26 million foreign aid had been released out of Rs 29 billion for the development projects of Higher Education Commission.
The government released Rs 6.09 billion out of Rs 9.85 billion for development projects of Interior Division and Rs 7.13 billion for National Health Services, Regulations and Coordination Division.
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