ISLAMABAD: The government has substantially increased disbursements for development programmes as it gets closer to the general election to be held next year.
In the first quarter of current fiscal year — the last year of current assemblies — the government has disbursed about Rs169 billion for the Public Sector Development Programme (PSDP), accounting for almost 17 per cent of total allocation. The PSDP allocation for the full fiscal year stands at Rs1,001bn.
This is the first time in last four years that development spending has gone beyond 15pc in the first quarter. Last year, the government had spent 13.7pc during the same period.
The disbursements also included a lump sum payment of Rs30bn for community development schemes on the recommendations of parliamentarians, code named ‘Prime Minister’s Global SDGs Achievement Programme’. The government had allocated Rs30bn for the full fiscal year under this head.
The SDGs achievement programme is made up of small community development schemes prepared on the recommendations of parliamentarians ostensibly for improving living standards of citizens through roads, sewerage, water supply, etc.
The Planning Commission data for the first quarter showed all federal ministries were given about Rs39bn during the period, accounting for 12.7pc of their allocations of Rs306.5bn.
Another Rs15.3bn was disbursed out of Rs71bn block allocations for three special areas under federal government’s financial control, namely Azad Jammu and Kashmir, Gilgit-Baltistan and tribal areas.
Likewise, Rs3.9bn were released for another politically oriented scheme — Prime Minister’s Youth & Hunarmand Programme against full year allocation of Rs20bn.
Under disbursement mechanism approved in consultation with the finance ministry, 20pc allocated funds are required to be released in each of the first two quarters and 30pc each in the third and fourth quarters of the financial year.
The disbursements for priority development areas of the PML-N government — electricity, highways and water — consumed about Rs72bn in first three months, accounting for 17pc of total allocations of Rs424bn.
The water projects were given Rs7.3bn, power sector Rs9.4bn and Rs56bn for national highways.
The allocation for power sector stood at Rs62bn, Rs326bn for national highways and Rs37bn for water sector.
During almost the same period last year, the government had disbursed about Rs110bn against an annual allocation of Rs800bn.
No funds were disbursed for Special Federal Development Projects for which an amount of Rs35bn had been allocated in the federal budget.
Likewise, no funds were released for Energy for All and Clean Drinking Water for All — both having an allocation of Rs12.5bn.
Published in Dawn, October 3rd, 2017