The unusual dynamism in the release of FY13 PSDP funds, first highlighted in this space two months ago, has carried on. Merely 20 weeks into this fiscal, and the Planning & Development division has already disbursed almost 40 percent of its PSDP disbursement limit of Rs233 billion. The official funds release mechanism necessitated 40 percent disbursements by the end of 1HFY13.
Latest data released by the Planning Commission shows that the P&D division released Rs89.7 billion for PSDP projects between July 1 and November 16, 2012. Out of the total federal PSDP portfolio of Rs360 billion, the Division is to release Rs233 billion. Twenty percent each were to be released in first and second quarters, 25 percent in the third quarter, and 35 percent in the last quarter of FY13.
Budgetary documents show that the projected foreign aid inflows of Rs100 billion (part of the Rs360 bn PSDP) would be received in the Economic Affairs Division during the year. The cabinet and finance divisions would directly release Rs27 billion allocated under Special Programmes (PWP-I and II), which is a genteel term for development schemes in various political hotspots.
The accelerated disbursal trend persists. The P&D division had already exceeded its quarterly release limit by more than 600bps in 1QFY13. If the current pace of disbursals perseveres, more than 50 percent of the PSDP allocations may be disbursed by the P&D division before the close of first half of the ongoing fiscal year. Though unknown, releases by the finance and cabinet divisions are also expected to pick up momentum.
Various divisions have received significant funding in the first three and a half months. These include the divisions of Communications (Rs11.36 bn), Kashmir affairs & Gilgit-Baltistan affairs (Rs8.12 bn), P&D (Rs7.6 bn, includes funding for vertical health programmes), PAEC (Rs7.01 bn), Railways (Rs6.63 bn), FATA (Rs5.73 bn), Housing & Works (Rs5.14 bn), Finance division (Rs3.38 bn), and HEC (Rs3.16 bn).
For the purpose of land acquisition at the construction site of the Diamer Basha Dam, an amount of Rs3.1 billion has been released to Wapda. Wapdas water sector projects have received Rs18.296 billion thus far. During the period, the Inter-provincial Coordination division received Rs0.926 billion for the World Bank funded project on immunisation and control of diarrheal disease at the NIH, Islamabad.
The official stated objectives for PSDP are to achieve and maintain higher growth, meet the MDGs, reduce poverty and take measures for socioeconomic development. Farther from that is the existing, mistaken notion of public sector development that is conceptually bereft and structurally inept to produce substantive socioeconomic gains or create public value. And now, the election mania is catching up, too!
Communications division, which is building roads, bridges, flyovers and underpasses in politically important districts, is the leading funding beneficiary so far. Reportedly, Planning Commission was forced to release over four billion rupees for development projects in the PMs electoral constituency of Gujar Khan. Only political expediency seems to explain the abnormal momentum in PSDP funds disbursement this fiscal year.
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Federal PSDP FY13 (Rs bn.)
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FY13
Sector Ongoing Throw FY13 budgetary allocation Releases*
Projects Forward (Govt. (Foreign (Jul.1
(No.) (Cost) Funds) Aid) - Nov.16)
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Infrastructure 344 2,346.4 125.3 85.6 51.5
Social 673 547.1 127.7 8.4 35.4
Others 68 40.6 3 0 0.8
ERRA - - 4 6 2.0
260.0 100.0
Total 1,085 2,934.1 360.0 89.7
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Data source: Planning Commission * Against Rs233.0 bn
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