Centre’s PSDP cut 44.4pc, Punjab ADP raised by Rs70bn

Mehtab Haider
Sunday, Jun 05, 2022

ISLAMABAD: The federal government’s development budget allocation was slashed by 44.4 percent, while Punjab was projected to utilise Rs70 billion more than its original outlay for the outgoing fiscal year, official data showed on Saturday.

These interesting facts about the spending related to federal and provincial development prorammes in the outgoing fiscal have raised many questions.

The ongoing political tussle also reflected in the development spending as well as the federal government’s Public Sector Development Programme (PSDP) was revised downward from Rs900 billion to Rs500 billion, witnessing a reduction of 44.4 percent.

Due to decreased share of federal PSDP, as a result of the reduction of Rs400 billion in PSDP 2021-22, the progress of some of the ongoing projects suffered. The number of projects targeted to complete by June 30, 2022 reduced from 320 to only 170 projects costing Rs285 billion. Thus, a considerable throw-forward has been carried forward for such projects in the next fiscal including their liabilities. In addition, some projects may face cost and time overrun in the next PSDP.

However, the official documents showed that Punjab’s allocation of the Annual Development Plan (ADP) stood at Rs560 billion including a local component of Rs478 billion and foreign aid of Rs81.926 billion. The revised estimates showed that the provincial government’s ADP would utilise Rs630.7 billion in the outgoing fiscal year including the local component of Rs570.1 billion and foreign aid of Rs60.5 billion.

Sindh remained unable to utilise its whole ADP for the outgoing fiscal year as it had allocated Rs293.6 billion for the current fiscal, but its actual utilisation would be standing at Rs217 billion till June 30, 2022.

The KPP province allocated Rs250.8 billion for its development programme in this fiscal year and it would be able to utilise Rs246.2 billion in the ongoing fiscal year ending on June 30, 2022.

Balochistan outlaid Rs189.91 billion in FY2022 for development purpose and was going to use more up to almost Rs192 billion in the fiscal year.

For the upcoming budget, the provincial development programme’s allocation stood at Rs1.38 trillion for the next budget including Punjab’s proposed allocation of Rs585 billion, Sindh Rs355.3 billion, KP Rs299.9 billion, and Balochistan Rs143.5 billion for next fiscal year 2022-23.