ISLAMABAD: Significant shortfalls in the revenue collection in 2016-17 curtailed releases for the Public Sector Development Programme (PSDP) by about Rs111.5 billion, down almost 17 per cent from the budget target.

According to the final update of the Planning Commission, the federal government allocated Rs656.68bn for the PSDP as domestic financing component. But it was able to authorise the disbursement of only Rs545bn by June 30.

Higher-than-targeted flows under foreign loans and assistance helped prevent a steeper fall. The government budgeted for receipt of Rs143.4bn as loans and assistance for the year, but received Rs199bn, up 33pc from the original estimate.

Biggest cuts in allocations for TDPs of Waziristan operation

Tax collections by the Federal Board of Revenue (FBR) are estimated to have suffered a shortfall of Rs240-250bn against a Rs3.621 trillion budget target, even though final numbers are still being reconciled.

Helped by foreign inflows, the total federal development programme, which includes projects funded with foreign grants and loans, achieved a respectable level of disbursements at Rs744bn by June 30 against the budgetary allocation of Rs800bn – still behind the overall size of the PSDP by Rs56bn or 7pc.

Major cuts in development allocations were seen on account of funds allocated for the settlement of temporarily displaced persons of Waziristan where Rs62bn was disbursed by the government against an allocation of Rs100bn.

Of this, the government surrendered Rs9bn from the TDPs account for the payment of contingent liabilities for JF-17 Thunder aircraft contractual payments during the fiscal year.

Special approval was secured from the president for the diversion of funds and conveyed to the Accountant General Pakistan Revenues (AGPR) by the finance division. The amount was “surrendered in favour of subsidies and miscellaneous expenditure to obtain technical supplementary grant for contingent liabilities for JF-17, Block-II contractual payments during 2016-17,” a senior official confirmed.

Out of the total releases of around Rs62bn under the TDPs head, Rs10.3bn was released for the raising of a special security force, Rs5bn for internal security allowance and Rs9bn for the payment of subsidies and miscellaneous expenditure/contingent liabilities for JF-17 aircraft. Remaining funds were released for the rehabilitation, housing, purchase of tents and leasing houses for TDPs.

Data of the Planning Commission suggested roads and power plants received the bulk of foreign funds during the last financial year. The amount was Rs182bn against the budget estimate of Rs116bn, up 57pc. As such, the overall disbursements to these sectors significantly exceeded target allocations of Rs325bn and consumed a total of Rs380bn.

The government cut allocations of almost all federal ministries to limit rupee component disbursements. But the biggest cut of Rs9.3bn, or more than 27pc, was made in the share of water-sector projects.

On the other hand, Rs27.5bn allocations for the Prime Minister’s Global Sustainable Development Goals projects — spent mostly in political constituencies — were fully consumed.

The Planning Commission said the National Highway Authority (NHA) was allocated Rs194bn, including the foreign exchange component of Rs61bn, for the construction of roads and highways. It had been provided with Rs224bn by June 30, including the foreign exchange component of Rs102bn. Likewise, the Wapda power sector was provided with Rs155bn by the end of the year against an allocation of Rs131bn.

Azad Jammu and Kashmir was another area that was provided with Rs15.5 billion against its allocated share of Rs14.7bn. Disbursements under similar block allocations to Gilgit-Baltistan and Federally Administered Tribal Areas stood at Rs10.8bn and Rs21.5bn against their share of Rs11.15bn and Rs22.3bn.

Published in Dawn, July 21st, 2017