ISLAMABAD: The significant reduction in Public Sector Development Programme (PSDP) from what was budgeted is due to lack of domestic resources and is not related to the ongoing negotiations with the International Monetary Fund (IMF) on the ninth review.
This was revealed by a well-informed source in the Planning, Development and Special Initiatives Ministry on condition of anonymity.
The government budgeted a total of Rs667 billion for the current year for federal PSDP with a foreign aid component of Rs60 billion giving a total of Rs727 billion with the proviso that for the first quarter 20 percent must be released followed by 30 percent in the second quarter.
Govt projection of achieving $3bn current account surplus in FY23 ‘unrealistic’: PBC
Data uploaded on the Planning, Development and Special Initiatives Ministry website reveals that July-December a total of Rs206.107 billion was authorized (distinct from actually disbursed) while foreign aid disbursement was Rs52.6 billion (till November) giving a total of Rs258.8 billion though actual expenditure is shown at Rs151.4 billion.
The shortfall in PSDP disbursement would negatively impact on growth and on taxes collected, sources further revealed.
Copyright Business Recorder, 2023
Comments
Comments are closed.