ISLAMABAD: Conveying serious concerns of Prime Minister Office (PMO) on slow utilization of funds allocated in Public Sector Development Fund (PSDP), Planning Commission (PC) has made it clear that further authorization would be considered on case-to-case basis subject to receipt of valid justifications.
PMOs concerns were shared by Joint Chief Economist (Ops) Mushtaq Ahmed Raja in a letter to 21 Federal Ministries/Divisions. The Government has already decided to slash PSDP 2021-22 by Rs 2000 billion to Rs 5000 billion from Rs 7000 billion as per agreement with the International Monetary Fund (IMF). Planning Commission is finalizing projects to be effected due to proposed cut in PSDP.
According to the letter of Joint Chief Economist, in continuation of Ministry of Planning, Development and Special Initiatives (MoPD&SI) letter of July 14 and & August 30, 2021 Public Sector Development Fund rupee funds @ 50 per cent were authorized upfront up to 2nd quarter. The Ministry/ Division concerned were empowered to utilize funds as per requirement of budgeted project(s) while remaining within the prescribed ceiling up to 2nd quarter.
He maintained that notwithstanding approved projects and upfront authorization, the utilization up to the 2nd quarter, as per SAP system, remained between 40% against the authorization in case of several Ministries/ Divisions/ Agencies. The same position was highlighted during periodic review meetings and the concerned were stressed upon to accelerate utilization in order to achieve the envisaged development objectives.
Raja stated that the Ministry of Planning, Development and Special Initiatives, is regularly submitting monthly progress report of PSDP to the Prime Minister’s Office (PMO) which has also shown serious concern at the slow utilization of the development funds.
In view of the low utilization against earlier authorization and conforming to prudent financial management, the 3rd quarter funds to Ministry are being authorized @ 10% of respective rupee allocation for current fiscal year. Thus, the overall authorization of each Ministry comes to 60% of respective rupee allocation up to 3rd quarter, he continued.
The Ministry of Planning, Development and Special Initiatives, further stated that authorization will be considered, on case-to-case basis subject to receipt of valid justification.
Mushtaq Ahmed requested the Ministries/ Division to accelerate the pace of funds of respective development portfolio. Further release may only be sanctioned to the budgeted project(s), keeping in view fiscal discipline. The provisions of PFM Act 2019, rules and regulations issued by the Finance Division and MoPD&SI from time to time may be strictly adhered.
Copyright Business Recorder, 2022
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