The indicative target of disbursement of Rs 86.4 billion for Benazir Income Support Programme (BISP) by midnight today is unlikely to be met by the government.
The budget for 2019-20, approved by the International Monetary Fund (IMF) as a "prior" condition of the $ 6 billion Extended Fund Facility programme envisaged Rs 190 billion for social protection, BISP being a major component; however the consolidated federal and budgetary operations July-September 2019-20 showed 547 million rupees were disbursed for social protection or less than one percent of the total budgeted.
The IMF's first review of the EFF notes that "poverty remains a significant concern and there is a large gender gap the authorities informed that the end September IT on BISP spending was not met due to technical constraints but committed to rectify the shortfall by end December and reaffirmed the budgetary allocations to BISP were being scheduled."
The IMf was informed that the technical constraints "relate to the time needed by BISP beneficiaries to enroll in the new bank accounts following the finalization of the new banking contracts. The process of enrollment is expected to be completed by Q23 FY 2020)" or by 31 December 2019.
Business Recorder contacted sources in the Finance ministry who confirmed that the government budgeted Rs 190 billion for social protection but did not respond to the query as to whether the government would be able to meet the indicative target of Rs 86.4 billion disbursement (half of the budgeted amount by the end of the first six months of the current fiscal year) by close of business today.
Dr Sania Nishtar, Chairperson BISP when contacted messaged the following: "we have a whole range of programs," adding that the agreements with IMF (not the deadline given by Fund) would be honoured and acknowledged that there were still a number of outstanding issues.
Dr Nishtar further messaged that "The IMF was also told that the payment systems need significant improvements and it was agreed that new payment system will be rolled out by end of October."
Since the new payment system was rolled out, it was decided by BISP Board to use the new system rather than the old one for all cash transfers this year. The said disbursements have already started and as soon as these transfers are completed another tranche at the enhanced rate of Rs 5,500 (rather than Rs 5,000) will be made. Before the end of the fiscal year all programmed cash transfers will be completed with an expense of Rs 120 billion.
In addition to the social safety cash transfers, the conditional cash transfer programme to bring out of school children to school and to keep them from dropping out will be rolled out in 50 new districts with the start of school year in April, 2020. Under this programme, in 100 districts of the country the stipend amount for the girl child will be Rs 1,000 and for boy child Rs 750 per quarter.
Expenditure on this programme in 50 current and 50 new districts will be in excess of Rs 8 billion this year, she added.
The mother and child nutrition programme will also rolled out in March in 8 districts with additional Rs 1.8 billion expenditure. Ehsaas undergraduate programme has been designed and implemented out of Ehsaas budget and Rs 5 billion will be spent on that project. A number of other programmes are in design stages. Money under Ehsaas is not spent unless rigorous scrutiny in terms of design has taken place at many layers, added Nishtar.
Copyright Business Recorder, 2019
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