ISLAMABAD, June 18: The federal government has decided to release Rs72 billion in July to accelerate the development process in all the four provinces.

“For the first time 45 per cent funds, out of Rs160 billion Public Sector Development Programme (PSDP) will be released during the first month of 2003-4 financial year,” said Planning Commission’s Chief Economist Dr Pervez Tahir.

He told Dawn on Wednesday that a decision had been taken that all development projects in the social sector would be extended funds on priority basis and well in time to ensure maximum utilization of funds.

Dr Tahir said that any ministry or division wishing to have early funds would have to reconcile previous accounts of 2002-3.

An additional secretary had been appointed to head the Project Wing in the Planning Commission to check inconsistency and imprudent spending by any department, he said.

Pakistan Institute of Development Economists (PIDE) president Dr A. R. Kamal when contacted said that it was a good development to release 45 per cent development funds within the month of July. “But what about the remaining 55 per cent funds and if they are not released in time it would mean that Rs160 billion PSDP was approved only to show increase in the development budget,” he said.

He was of the view that if the actual spending remained less as was the case in the past, then it would be difficult to expect better results.

Dr Kamal expressed his fears that due to 15 per cent increase in salaries of the government employees and increased expenditure, the government could face financial constraints that could eventually result in the cutting of development budget during the next financial year.

Responding to a question, he said the government had been advised to conduct strict monitoring of Rs40 million and above development projects.

He said that a decision to convene the meeting of the National Economic Council (NEC) twice a year and that of the Executive Committee of the National Economic Council (ECNEC) four times a year would help accelerate the process of development in the country.