June 14, 2006	Wednesday	Jumadi-ul-Awwal 17, 1427

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PESHAWAR, June 13: The NWFP government is set to miss the Rs21 billion development expenditure target under its 2005-06 annual development programme as its spending stood slightly over Rs8.1 billion, 38.7 per cent of the total size of the ADP, at the close of first nine months the fiscal year.

Slow pace of work during the first two quarters, lack of adequate staff and belated start of work on several new projects have been cited by the development planners as the reasons for low utilisation of funds.

According to official documents available with Dawn, while expenditure against the locally funded component of the ADP is comparatively satisfactory, the spending against the foreign-funded component was not very encouraging at the close of the first nine months.

The provincial government has envisaged development outlay of Rs6.87 billion under the foreign funded component. Against this allocation, the utilised funds stood at Rs1.45 billion, only 21.1 per cent of the total funds under this component aided by the ADP, the World Bank, Asian Development and Swiss Development Agency.

Similarly, out of the Rs11.2 bn locally funded part of the ADP, expenditure stood at Rs5.5 bn, 49.1 per cent of the total size.

Apart from the foreign funded projects, major setback was experienced under the districts’ program. The provincial government had earmarked Rs963 million for 24 district governments of the province for their development schemes. However, against this allocation, the district governments and their tehsil municipal administrations could spent only a paltry sum of Rs39.6 million during the first nine months, leaving a hefty amount unspent.

Out of the Rs5.4 bn spent under the locally funded component of the ADP, major expenditure was recorded under the school and literacy sector with total spending of Rs1.33 bn out of total annual allocation of Rs2.3 bn. Similarly, expenditure on construction of roads also remained high with total spending of Rs1.23 bn against an annual estimate of Rs1.38 bn, whereas, an amount of Rs206 bn was spent by the building department against an annual allocation of Rs255m. Similarly, against annual allocation of Rs85m, expenditure on urban development surpassed the annual allocation and stood at well over Rs96m at the close of the first nine months of the current fiscal year.

Expenditure under the higher education sector stood at Rs383m against annual allocation of Rs765m, whereas, a total expenditure of Rs596m was recorded in the health sector against an annual allocation of Rs1.22 bn. Spending on drinking water supply and sanitation sector stood at Rs145m out of the total annual allocation of Rs224m, whereas, total expenditure of Rs151m was recorded in the industries sector against the annual allocation of Rs284m. Expenditure in the water sector stood at Rs225m against an annual allocation of Rs687m while expenditure in the power sector stood at Rs114m against annual allocation of Rs249m. The agriculture sector-related expenditure stood at Rs72m against an annual allocation of Rs175m. Similarly, total sum of Rs93m could be spent in the forestry sector against an annual allocation of Rs153m.

Officials have expressed the hope that development expenditure would improve substantially during the last three months of the outgoing financial year.