Things seem to have cooled down a bit as far as release of funds for PSDP projects is concerned. Latest data released by the Planning Commission shows that the P&D division had released Rs114.6 billion for PSDP projects between July 1, 2012 and February 1, 2013. The Division is authorised to release upto Rs233 billion out of the total Rs360 billion portfolio of federal PSDP in FY13.
So far, it has exhausted roughly 49.18 percent of its mandated limit in 7MFY13. As per official release mechanism, the P&D division can disburse up to 65 percent of the limit by March end, and rest in the final quarter of the fiscal.
A budgeted amount of Rs100 billion, from foreign aid inflows, is also a component of the federal PSDP, which is to be received in the Economic Affairs Division during the year. EAD data shows that provisional foreign project aid disbursements (grants and loans) for PSDP projects stood at $736 million during the July-December period. Out of these, $708.6 million are project loans, and the rest are project grants.
Funds for ‘Special Programmes’ worth Rs27 billion, the final component of the PDP, are disbursed by the cabinet and finance divisions, under the instructions of Prime Minister, and most of the disbursements are expected to have been made already, though no official data is available on it.
Major PSDP funding during 7MFY13 has gone to the usual priority divisions, including Communications (Rs11.42 bn), Kashmir affairs & Gilgit-Baltistan affairs (Rs10.51 bn), HEC (Rs7.89 bn), P&D (Rs11.06 bn), the PAEC (Rs8.86 bn), Railways (Rs10.05 bn), Housing & Works (Rs5.87 bn), FATA (Rs5.73 bn), and Finance (Rs4.43 bn).
Wapda’s water-sector projects received Rs23.46 billion, while Rs3.11 billion was released to it for land acquisition of the Diamer Bhasha Dam.
The urgency and expediency in the release of development funds, seen in the recent past, has been widely attributed to the countdown for parliamentary elections. The Finance Ministry’s half-yearly data on fiscal operations seems to confirm that.
During 1HFY13, the federal government’s total development expenditures stood at Rs161.96 billion. Out of that, Rs141.35 billion was spent on PSDP projects and Rs20.6 billion on ‘other development expenditures’.
There is still a month left till the curtain automatically falls on the federal government, and the government can still disburse another Rs37 billion for PSDP project before March ends. But another funding spree seems difficult.
For one, the government’s financial decisions are coming under increased public scrutiny as elections approach. Moreover, there may not be much ‘politics of development’ left in this PSDP portfolio. But that may not stop the government from ‘inaugurating’ new projects, however unceremonious that may seem. The irony remains that while all that is done in the name of development, very little attention is given to the projects’ socioeconomic benefits to the public, the taxpayers.
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FEDERAL PSDP FY13 (RS BN.)
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Sector Ongoing Throw FY13 budgetary FY13
Projects Forward allocations Releases*
(No.) (Cost) (Govt. Funds) (Foreign Aid) (Jul. 1
- Feb. 1)
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Infrastructure 345 2,320.3 125.6 85.6 62.7
Social 688 549.8 127.4 8.4 48.7
Others 71 41.3 3.0 0.0 1.2
ERRA - - 4.0 6.0 2.0
260.0 100.0
Total 1,104 2,911.5 360.0 114.6
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Data source: Planning Commission * Against Rs233.0 bn
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