The federal government has released Rs 474.25 billion (about 68 percent of the total budgeted allocation of Rs 700 billion for 2015-16 ), including Rs 81.56 billion foreign aid, under the Public Sector Development Programme (PSDP) for various development projects. The government released Rs 148.7 billion including Rs 16.4 billion foreign aid out of the total budgeted allocation of Rs 209.6 billion for various federal ministries and departments in the current fiscal year.
According to the latest data released by the Ministry of Planning, Development and Reforms, a total of Rs 74.68 billion has been released for National Highway Authority (NHA) including Rs 13.99 billion foreign aid against the total allocation of Rs 159.6 billion for current fiscal year. Federal government has also released Rs 101.8 billion including Rs 44.9 billion foreign aid for Water and Power Development Authority (Wapda-power sector) out of the budgeted Rs 114 billion while Rs 21.7 billion including Rs 455 million foreign aid has been released for Wapda (water sector) out of the budgeted Rs 30 billion.
The Commission released Rs 26.59 billion including Rs 116.9 billion foreign aid for the development projects of Pakistan Atomic Energy. A total of Rs 25 billion has been released for Pakistan Railway Division. The government has released Rs 1.4 billion rupees for Science and Technology, Research Division out of its budgeted allocation of Rs 1.5 billion.
The government may release around 80 percent, ie, Rs 550 billion of the total budgeted Rs 700 billion by the end of current financial year. According to officials absorption capacity issues are always there and government is unlikely to release the whole budgeted amount. Still it seems government would close this fiscal year with good development spending, the official added.
The government is facing financial constraints after failing to generate privatisation proceeds and auction of Next Generation Mobile Services (NGMS) spectrum. However, the officials maintained that cut in PSDP would help the government to achieve the budget deficit target of Rs 1.3 trillion, ie, 4.3 percent set for the ongoing financial year.
According to the Ministry of Finance, the government has been able to limit fiscal deficit at 3.4 per cent during the first nine months of the current fiscal year. Summary of consolidated federal and provincial budgetary operation for July-March 2015-16 reveals provinces'' Rs 107 billion surplus also helped Finance Ministry tame the deficit.
Tax revenue stood at Rs 2,480 billion and current expenditure at Rs 3,406 billion with provincial share of Rs 188 billion only. Financing of deficit Rs 1,009 billion was met through external and domestic resources. The current expenditure of the government for the period under review stood at 11.4 per cent of the GDP and tax revenue at 8.3 per cent. The total revenue as percentage of the GDP stood at 9.9 per cent and total expenditure 13.3 per cent of the GDP, maintained Finance Ministry''s latest figures.
According to the Federal Board of Revenue (FBR), Rs 2,090 billion has been collected provisionally against the target of Rs 2,100 billion set for the first nine months (July-March) 2015-16 reflecting a shortfall of Rs 10 billion. On meeting the assigned target for this period, the FBR will be in a position to meet the annual target of Rs 3,103.7 billion for 2015-16 against the downward revised target of Rs 2,605 billion in 2014-15.
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