ISLAMABAD: Over the last five years, the federal government could only spend less than five per cent of funds on projects conceived under the Public Sector Development Programme (PSDP) to cater to the citizens’ basic needs of water, electricity, healthcare and education, the National Assembly was told on Monday.

According to a written reply submitted to the lower house, during the five years of the PPP and one year of the PML-N federal government, 213 projects were planned at a cost of Rs1,978 billion. However, until June 2014, the government could spend only Rs89 billion (4.5 per cent) on them.

The shocking piece of information was placed before the house by Federal Minister for Planning and Development Ahsan Iqbal. However, the question hour, which is meant for taking up answers, along with other business of the house was suspended to debate the suicide bombing of a Shia mosque in Shikarpur.

Interestingly, the most neglected part of the spending was the generation and distribution of electricity.

In total, 29 projects at a cost of Rs1,659 billion were devised to improve the provision of electricity. However, only Rs62 billion (3.7 per cent) could be spent on the ground.

Then comes the health sector, in which the federal government visualised 24 projects, which needed Rs41 billion for completion, but could only spend Rs3 billion (7.3 per cent) on them.

The federal government also worked out 49 water projects which included the construction of dams and the improvement of irrigation and overall water supply system against an estimated Rs177 billion. But only Rs14 billion (7.9 per cent) could actually make to the ground.

In the field of education and higher education, the policymakers planned 111 projects for which they required Rs101 billion. However, until June last year, these projects have only received Rs10 billion (9.9 per cent).

Of the Rs1,978 billion, which was to be spent on 213 projects, only Rs3,489bn could be spent

In his written response, Mr Iqbal clarified that though the subjects of health and education had been devolved to the provinces after the 18th amendment, the federal government continued financing the vertical programmes of health, population and higher education and trainings through the PSDP as per decision of the Council of Common Interests (CCI) of April 28, 2011.

The minister said the primary responsibility for the periodic monitoring and review of the PSDP-budgeted schemes rested with the relevant line ministry/division.

However, the ministry of planning, development and reforms on the directions of the National Economic Council conducted quarterly reviews with the line ministries/divisions to assess the financial and physical progress on the projects.

He said issues and bottlenecks were identified and remedial measures suggested to the line ministries/divisions for smooth and timely execution of the projects, including the diversion of funds from slow-moving to the fast-moving projects.

The first quarter review of PSDP 2014-15 was held in November 2014 and the mid-year review 2014-15 in the last week of January, 2015, said the minister.

The Planning Commission also undertook the monitoring of mega projects and disseminated the monitoring reports to the stakeholders suggesting measures for their smooth implementation.

It was stated that since the subject of core social sector-related activities had been devolved to the provinces, the federal government extended assistance, both technical and financial, in the shape of development projects wherever required.

The minister claimed that an accelerated development in the backward areas was the priority of the government.

Various initiatives and special development packages are being undertaken through the PSDP in consultation with the provincial governments for the development of the backward areas, he added.

The core social sector subjects have been devolved to the provinces for financing under the enhanced resources being transferred to the provinces through the 7th NFC Award.

However, the federal government has budgeted a MDGs and community development programme to be launched during the current fiscal year with an allocation of Rs12. 5 billion.

The implementation of the programme will take place across the country, including the backward areas in consultation with and demand of the community. The community would be required to forward its demand through the DCOs.

Sources said under the garb of the community development scheme, the PML-N government intended to facilitate its lawmakers who previously used to get Rs20 million per annum development grants.

Published in Dawn February 3rd , 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play