FY22 ‘There will be zero release of funds for development budget in last quarter’

ISLAMABAD: Public Sector Development Programme (PSDP) authorisation for July-March 2021-22 was 603.5 billion rupees against the budgeted target of Rs900 billion while actual disbursement for the period was Rs466.393 billion as per Federal Ministry for Planning, Development and Special Initiatives.

During July-March 2021-22 only 51.8 percent of the total budgeted PSDP was released while authorisation was Rs136.9 billion less than what was actually disbursed July-March period.

According to Ministry of Planning, the difference between the total authorised for all federal ministries and their various departments against disbursement/ expenditure was as follows: Rs511.71 billion authorisation for federal ministries with disbursement/ expenditure of Rs466.15 billion – a difference of Rs45.56 billion.

According to the Ministry of Planning, Power Division was disbursed Rs39.65 billion against a lower authorisation of Rs12.27 billion which is Rs27.38 billion – 223 percent higher than the authorisation. And Water Resources Division spent Rs4.8 billion - 7.5 percent more than the actual authorisation.

For Aviation Division disbursement was Rs576.7 million – 44 percent lower than authorisation; climate change disbursement was Rs5.75 billion - 40 percent less than authorisation; Higher Education Commission was disbursed Rs11.45 billion - 41.6 percent less than authorisation; Communication Division disbursed Rs2.99 billion - 4.3 percent less than authorisation; Federal Education and Professional Training Division was disbursed Rs1.96 billion - 38 percent less than authorisation; Housing and Works Division were disbursed Rs4.5 billion - 30 percent less than authorised while Human Rights Division was disbursed Rs109.52 million - 65 percent less than authorised, Information Technology and Telecom Division received Rs2.87 billion - 58.8 percent less than authorised, National Health Services, Regulations and Coordination Division was disbursed Rs5.69 billion - 45 percent less than authorisation.

Meanwhile Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that for the first time in country’s history Ministry of Finance has notified that there will be zero release of funds for ongoing Public Sector Development Programme (PSDP) 2021-22 budget during the last quarter.

The Minister in his tweet on Monday said, “Let me share with you the extent & state of the damaged economy we have inherited. For the first time in country’s history Ministry of Finance has notified that there will be zero release of funds for development budget during the last quarter.”

In another tweet, he said that the Pakistan Tehreek-e-Insaf (PTI) government had reduced development budget from Rs900 billion to Rs500 billion.

According to Minister’s tweet, “I was holding same position at the time country faced sanctions due to nuclear explosion, we didn’t face this situation even then. This is despite the fact that Rs900b development budget had already been reduced to less than Rs 500b.”

The Minster said in a third tweet, “We are working hard and everyone has to contribute by putting in his/her best as a member of Team Pakistan. Insha Allah we will turnaround the economy.”

Copyright Business Recorder, 2022