ISLAMABAD: The government has restricted disbursements for Public Sector Development Programme (PSDP) at Rs752 billion so far – just 75 per cent of the budgeted allocations for the outgoing fiscal year – owing mainly to a massive overshoot in fiscal deficit.

The Planning Commission on Tuesday said the government had released just Rs186bn for the federal ministries as of June 22 against an allocation of Rs302bn, showing a disbursement of less than 62pc. About Rs115bn out of ministries’ allocations had been surrendered to the Ministry of Finance for deficit financing.

Total disbursement for the entire PSDP as of June 22, 2018 amounted to Rs752bn against an annual allocation of Rs1001bn while about Rs250bn have been diverted for deficit financing to the extent of 0.7pc of GDP.

An official explained that no more funds would be released for development programme in the remaining few days of the current fiscal year ending June 30, except for a couple of billions of rupees worth of payments due, as the process of release orders had been wound up for now.

He said most of the funds were disbursed by the PML-N government before May 31 and only about Rs10 billion were released since the caretaker government took over and even these payments had become due against work orders already issued during the tenure of the political government.

Last year, the government had disbursed about Rs740bn during this period against a budgetary allocation of Rs800bn, showing a utilisation of almost 93pc for the development programme.

National Highway Authority (NHA) was provided about Rs302bn against its allocation of Rs325bn in view of its involvement in execution of a series of road sector projects under the China-Pakistan Economic Corridor (CPEC). Power sector, another major component of the CPEC, has consumed about Rs43.44bn against an allocation of about Rs61bn, accounting for 71pc. Together, the NHA and Power sector were provided Rs345bn against allocations of Rs386bn.

Special areas including Azad Kashmir, Gilgit-Baltistan and Tribal areas were disbursed Rs66bn compared to their combined allocation of Rs71bn. Tribal areas took away the lion’s share of Rs26bn, slightly short of its targeted Rs26.9bn. AJK was provided Rs24.6bn against its allocation of Rs25.8bn while GB received Rs15.5bn against its allocated share of Rs18.3bn.

A major 62pc cut was imposed on national health sector and regulations and coordination division which was provided only Rs18.75bn until June 22 against its annual allocation of Rs48.7bn.

While the PML-N government had made 100pc disbursements of Rs30bn allocated for the PM’s Global SDG commitments, almost entire Rs12 billion earmarked for clean drinking water for all remained unutilized. On the other hand, Rs11.7bn were spent on energy for all schemes against an allocation of Rs12.5bn.

As such, a total of Rs676bn (78pc) were disbursed for the core PSDP projects having an allocation of Rs866bn, thus securing a saving of about Rs190bn or 22pc.

Another major saving of about Rs38bn was secured out of allocations for special development programmes for settlement of temporary displaced persons and security arrangements as Rs62bn were disbursed against an allocation of Rs90bn.

Likewise, the disbursements for PM’s youth schemes had been contained at Rs13.7bn against an allocation of Rs20bn while an entire allocation of Rs25bn under gas infrastructure development cess was not utilized during the year.

The Ministry of Information, Technology and Telecom was the luckiest ministry to have consumed about Rs2.5bn until June 22, far exceeding a full year allocation of Rs1.5bn. Space and upper atmosphere research commission (Space and Upper Atmosphere Research Commission) was also able to secure more funds than allocations of Rs3.5bn.

On the other hand, Ministry of Foreign Affairs was the only ministry which was not given a single penny for its development schemes throughout the year against an allocation of Rs200 million. Ministry of Ports and Shipping was also given just Rs1.77bn against its allocation of Rs12.78bn while Railways secured Rs19bn against its approved share of Rs43bn.

Published in Dawn, June 27th, 2018