ISLAMABAD, Oct 5: Pakistan’s poverty-related expenditure in seven out of 12 sectors has remained significantly short of target during 2002-03 while in three sectors it was even lower than the corresponding fiscal year 2001-02.
This was stated in the full-year progress report on Poverty Reduction Strategy Paper, prepared by the ministry of finance and verified by respective accountant generals.
The report, at the same time, stated that the total PRSP expenditure by the end of June 2003 stood at about Rs158 billion or 98 per cent of the target of Rs161 billion. As such, the overall anti-poverty expenditure in 2003 rose by 18.3 per cent by comparison with 2002.
The report claimed that in the earlier part of the year, expenditure were moving with a slower place, because of elections and induction of elected government but accelerating during the later part of the financial year.
But, according to the Asian Development Bank, maximum releases were made during June to show higher disbursement but this resulted in leakages.
A further breakdown of anti-poverty budgetary expenditures during fiscal 2003 indicates an increase for the federation by 34.2 per cent, Punjab 27.5 per cent and Balochistan by 66.3 per cent against the fiscal 2002. However, Sindh and the NWFP have shown decrease in budgetary expenditures during 2003 of 0.8 per cent and 27.1 per cent, respectively, against 2002.
In three vital areas of water supply and sanitation, social security and social welfare and land reclamation, the budgetary expenditures during 2003 have dropped by 30 per cent, 64 per cent and one per cent, respectively, over the corresponding year 2002.
Seven core areas, where the anti-poverty expenditure remained short of target during 2003, included food subsidies, land reclamation, irrigation, social security and other welfare, population planning, health and education.
The social security and social welfare sector expenditure was short of target by 60 per cent, followed by food subsidies by 28 per cent, land reclamation 16 per cent, health 13 per cent, population planning 12 per cent, irrigation 11 per cent and education one per cent.
Despite continuous water related problems over the past few years, expenditure during 2003 on water supply and sanitation was Rs3.263 billion, lower by 30 per cent against Rs4.644 billion spent in 2002. This shortfall was broad-based in all the provinces and the federal government except Balochistan.
In the non-budgetary PRSP social safety transfers, micro- credit disbursement and employees old-age benefit disbursements were short of target while Zakat distribution was higher than the target. The EOBI disbursements amounted to Rs1.5 billion against a target of Rs1.8 billion, lower by 15 per cent while micro- credit transfers amounted to Rs2.5 billion against a target of Rs2.8 billion, down by nine per cent.
As percentage of GDP, the total budgetary and non-budgetary PRSP transfers during 2003 stood at 4.23 per cent (Rs170 billion) against a target of 4.31 per cent of GDP (Rs173 billion) but was higher than the corresponding period of 2002 when it amounted to Rs141 billion or 3.8 per cent of GDP.
The number of state land recipients also reduced from 2,694 in 2002 to 820 in 2003 while beneficiaries of temporary employment (Khushal Pakistan Programme) also dropped to 80,758 in fiscal 2003 against 347,384 people in corresponding year of 2002.
However, PRSP expenditure in nine out of twelve sectors during 2003 was higher than fiscal 2002, mostly because of higher allocations.
The percentage increase for key areas was: 70 per cent in roads and highways, 7.2 per cent in education, 10 per cent in health, 133 per cent in population planning, 124 per cent in natural calamities, 66 per cent irrigation, 48 per cent in rural development, 38 per cent in food subsidies and 11 per cent in food support programme.
The report said the Zakat Fund has accumulated to over Rs20 billion in savings over the years while annual Zakat deduction are estimated to remain around Rs5 billion over the medium term. It said Pakistanis paid over Rs70.5 billion annually in charity and Pakistan Centre for Philanthropy (PCP) has been established to channelise these funds.
