April 24, 2002	Wednesday	Safar 10, 1423

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MUZAFFARABAD, April 23: Despite repeated warnings by Prime Minister Sardar Sikandar Hayat Khan, less than half of the development budget was utilized in Azad Jammu and Kashmir by the end of the third quarter of the current fiscal year, Dawn learnt here on Tuesday.

Against Rs2,580 million, including the foreign aid of Rs342 million, approved for the AJK annual development programme (ADP), the nation building departments reported by the end of March an expenditure of Rs1,198.207 million — 46.44 per cent of the total allocation.

The expenditure reported by the accountant general’s office was Rs1,113.141 million — 43.15 per cent of the total allocation.

The minimum utilization of funds was reported by the Azad Jammu and Kashmir Hydro Electric Board (AJKHEB), which spent only Rs17.7 million (12.69 per cent) from its revised allocation of Rs139.498 million. The HEB has already surrendered Rs50 million and is considering surrendering more from its allocated funds due to its alleged failure to initiate work on new schemes.

Spending by the electricity department from its budgetary allocation of Rs239.502 million was Rs109.507 million (45.72 per cent).

The overall utilization by the power sector, including both the HEB and the electricity department, was 30.82 per cent — 12 per cent less than that of its spending in the corresponding period of the previous year.

Funds utilization by the health department was 43.64 per cent of its allocation of Rs231 million. Last year, it spent 52.24 per cent of its funds in the corresponding period.

In the education sector, only 33.69 per cent of the allocated funds of Rs457.080 million was spent, which was almost equal to its spending of the last year’s corresponding period. The utilization in foreign-aided projects was 56.77 per cent — around 24 per cent more than that of the corresponding period in previous year.

In the agriculture sector, 43.07 per cent utilization of funds was reported from the crop husbandry department, 35.52 per cent from the animal husbandry department, 68.68 per cent from the forestry and 29.57 per cent from tourism/wildlife/fisheries.

Similarly, the industries and minerals sector, consisting of industries department and two corporations, spent 38.66 per cent of its allocated funds, the social welfare department 11.52 per cent, the environment sector 18.08 per cent and the research and development sub-sector 15.17 per cent.

The information technology and irrigation sub-sectors, for which Rs50 million and Rs700,000 were allocated, respectively, utilized no funds.

However, the performance of the local government and rural development department and the public works department was stated to be satisfactory. The LG&RD spent Rs277.920 million (73.25 per cent) of its budget — 10 per cent more than that of last year’s corresponding period.

In July 1997, all the nation building departments were asked, through a notification, to ensure 65 per cent expenditures against the total allocation by the end of the third quarter, failing which their remaining amount was to be transferred to other departments, requiring additional funds. The motive was to persuade the departments to improve the utilization of the ADP and avoid purchases at the end of the financial year.

The review meeting of the third quarter is being held here on Wednesday. Prime Minister Sikandar Hayat Khan will preside over the meeting.