ISLAMABAD (The Thursday Times) — The federal government spent Rs103.88 billion on development projects in the first four months of the fiscal year, just 10.4 per cent of its Rs1 trillion annual Public Sector Development Programme, according to data released by the Ministry of Planning and Development.
The spending from July to October was far below the Rs412.29 billion the Planning Commission had authorised for release during the period, meaning most of the money cleared for projects has not yet been used.
Ministries and corporations
Federal ministries and divisions spent Rs74.66 billion against a combined annual allocation of Rs682.49 billion, a utilisation rate of 10.9 per cent, even though Rs302.91 billion, about 44 per cent of their yearly budget, had already been authorised.
Government corporations, mainly in roads and power, used Rs29.22 billion, or 9.4 per cent of their Rs312.51 billion allocation. The National Highway Authority spent Rs13.30 billion, under 6 per cent of its Rs224.51 billion budget, while the power companies spent Rs15.92 billion, about 18 per cent of theirs.
Among the divisions, the Water Resources Division was the biggest spender at Rs18.7 billion, about 18 per cent of its allocation. The health ministry used about 41 per cent of its Rs16 billion development budget. The Climate Change Division spent Rs259 million of Rs2.5 billion, and the National Food Security Division Rs65 million of Rs4.2 billion.
Slow by design, slower in practice
Under the government’s financial rules, development funds are released in stages through the year: 15 per cent of the annual allocation in the first quarter, 20 per cent in the second, 25 per cent in the third, and the rest in the final quarter. The schedule is meant to keep development spending in line with revenue and with the fiscal targets agreed with the International Monetary Fund.
Spending has lagged even that cautious schedule. The slow pace comes as the government reported a budget surplus in the first quarter of the fiscal year, with development projects among the first costs held back when revenue targets are under pressure.
In past years, development spending has often been concentrated in the last months of the fiscal year, when ministries rush to use their allocations before June 30.
