ISLAMABAD: The federal government has exceeded the budget allocation for development projects under the Public Sector Development Programme (PSDP 2025–26), spending an additional Rs96 billion and raising the overall expenditure beyond the approved allocation.
Despite repeated commitments to fiscal discipline, the federal government exceeded the approved allocation under the PSDP for the financial year 2025–26, which concluded on June 30.
According to official documents, the total budgetary allocation for the PSDP stood at Rs820.5 billion, and the Ministry of Planning had authorised the entire amount. However, total expenditure on development projects reached Rs916.02 billion, exceeding the approved allocation by Rs96 billion.
For development projects under the Power Division, the total budgetary allocation stood at Rs73.14 billion, but expenditure surged to Rs122.55 billion, exceeding the approved allocation by Rs49.41 billion.
Similarly, development projects under the Water Resources Division recorded a significant budget overrun, with expenditure rising to Rs137.49 billion against an approved allocation of Rs101.64 billion, exceeding the budget by Rs35.85 billion.
Development projects under the Railway Division also recorded a substantial budget overrun, with expenditure rising to Rs35.143 billion against an approved allocation of Rs18.558 billion, exceeding the budget by Rs16.585 billion.
Similarly, for the Revenue Division, the total budgetary allocation stood at Rs12.213 billion, but expenditure increased to Rs14.813 billion, exceeding the approved allocation by Rs2.6 billion.
Under the Petroleum Division, expenditure on development projects reached Rs612.48 billion, against an approved allocation of Rs568.58 billion, resulting in excess spending of Rs43.9 billion under the Public Sector Development Programme (PSDP) 2025–26. Development projects under the Federal Education and Professional Training Division also exceeded the approved allocation, with expenditure reaching Rs27.042 billion against a budgetary allocation of Rs26.81 billion, resulting in excess spending of Rs0.232 billion.
Copyright Business Recorder, 2026
Comments