ISLAMABAD The utilisation of funds for development schemes of the former parliamentarians appeared to taper off on the eve of elections yet remained the second-largest expenditure portfolio in the Rs190 billion overall disbursements for a struggling Public Sector Development Programme (PSDP) in the first seven months of 2023-24.
The latest data on development expenditure released by the Planning Commission, special areas including Azad Kashmir, Gilgit-Baltistan and the erstwhile Fata areas emerged as the largest head with Rs40.5bn in the July-January period, followed by Rs35.6bn of the parliamentarian’s scheme.
However, if seen in the context of budget allocations, the parliamentarian schemes overshadowed even the special areas. The special areas consumed less than 24pc of Rs167bn allocation compared to 40pc by MNAs schemes envisaging Rs90bn budget allocation.
MNAs’ schemes utilise Rs35.6bn in seven months of 2023-24
In January alone, the expenditure in special areas increased by Rs10bn to Rs40.5bn in seven months, up by almost 37pc while the parliamentarian’s scheme — the so-called SDGs Achievement Plan (SAP) — inched up by just Rs480 million to Rs35.62bn against Rs35.14bn by end of December, up 1.4pc.
The Special Investment Facilitation Council (SIFC), a civil-military forum, followed by the National Economic Council (NEC) had decided a couple of weeks back to cap SAP funds at the level already authorised for disbursement at Rs61bn and save the remaining Rs30bn for deficit financing.
Excluding special areas and MNA schemes, the country’s infrastructure and development appeared to be struggling at just Rs114bn in seven months.
Under the disbursement mechanism announced by the Planning Division, the development funds allocated in the federal budget should be released at the rate of 20pc in the first quarter (July-September), followed by 30pc each in the second (October- December) and third quarter (January-March) and remaining 20pc in last quarter (April-June) of each fiscal year.
Under this principle, special areas’ development activities should have consumed at least 60pc in seven months or Rs100bn instead of Rs40.5bn actual consumption. Likewise, the overall PSDP projects should have spent Rs564bn out of Rs940bn allocation as they also involved dams, roads, health, education and so on.
The overall PSDP expenditure in the July-January period increased to Rs190.44bn from Rs149.67bn a month ago.
The Pakistan Democratic Movement government had allocated slightly over Rs90bn for parliamentarian schemes for the current fiscal year and authorised for release of about Rs61bn before leaving office in the second week of August. Before exit, the government could, however, utilise only Rs14.4bn in the first two months, i.e. by Aug 31.
Published in Dawn, February 14th, 2024
