Experts criticise shape of PSDP

Prime Minister's youth-related initiatives and resettlement of Temporary displaced Persons (TDPs) as well as related security expenditure cannot be made part of the Public Sector Development Programme (PSDP) because none of them is investment expenditures, according to former secretary planning commission and former advisors to Finance Ministry.
Former Secretary Planning Commission Ashraf Hayat said that technically these are current expenditure because none of them is development expenditure. A meeting of National Economic Council (NEC) presided over by Prime Minister Nawaz has included Rs 100 billion for resettlement of TDPs and related security expenditure as well as Rs 20 billion for Prime Minister's youth-related initiatives in the PSDP for the next fiscal year. The meeting also approved Rs 700 for PSDP against Rs 580 billion considered by the Annual Plan Coordination Committee (APCC). Former Advisor to Finance Ministry Dr Ashfaque Hasan Khan said that above-stated expenditures on two accounts can not be made part of the PSDP because of their nature. He added that only asset-making projects can be made part of the PSDP for the benefit of future generations.
He further added that the government has included them in the PSDP to show greater increase in development budget as compared to previous year; otherwise there was no other justification to make them part of the PSDP. He added that during the course of the year the total utilization would be much lower than Rs 700 billion. Former Advisor to Prime Minister on Finance Dr Hafeez Pasha also agreed that allocation for Prime Minister's youth-related initiatives can not be made part of the PSDP and it can not be made part of other development expenditure as was done in the case of the Benazir Income Support Programme (BISP). However, he added that if the government would utilize Rs 100 billion for reconstruction and rehabilitation of TDPs then the amount can be made part of the PSDP. Pasha also stated Earthquake, Reconstruction and Rehabilitation Authority (ERRA) work was undertaken under development expenditure since the 2005 earthquake. However, he said that it remains to be seen whether the government would be able to utilize the allocated Rs 700 billion for the PSDP given its past track record.
Asif Sheikh of Planning Commission insisted that allocation for settlement of TDPs was part of the development budget because a major portion of the amount would be utilized on the reconstruction of houses of the displaced families damaged fully or partially during the Zarb-e-Azab operation against extremists. Funds would be released as and when demands are received from FATA secretariat in this regard as per the laid down procedure of the PSDP.