PSDP 2019-20: Government releases Rs 444.3 billion against budgeted Rs 701 billion

The federal government has released Rs444.3 billion (63.4 percent) including Rs85.17 billion foreign aid (66.4 percent) for various ongoing and new development projects under the Public-Sector Development Programme (PSDP) 2019-2020 against the total budgeted allocation of Rs701 billion.

However, last Wednesday, the Ministry of Planning and Development told the Senate Standing Committee on Planning and Development that the relevant ministries and departments had failed in utilization of less than 20 percent funds released in the first two quarters of the current financial year, as the unutilized amount remained Rs140 billion.

Senior officials of the Planning Ministry said that some departments such as the National Highways Authority (NHA) create hype and get projects approved in the PSDP, but later do not utilize the funds.

Nine ministries have so far requested for re-appropriation of funds.

In most cases and especially in the communication sector, the procurement of land for the projects remained a complex issue and such issues take years to settle down, so the Ministry of Planning decided that unless the project was not approved, and land not acquired where required, no funds would be allocated for it in the PSDP.

The total size of the PSDP during current fiscal year was Rs701 billion out of which Rs424 billion were to be authorized by the Planning Ministry, while Rs149 billion were to be managed and released by the Finance Division whereas the remaining Rs128 billion were part of foreign aid component, which are directly disbursed to the project authorities.

According to the latest data of the PSDP 2019-2020 released by the Ministry of Planning, Development and Reforms on Saturday, the government released Rs190.87 billion (62.85 percent), including Rs11.24 billion foreign aid for development projects of various ministries, divisions and related departments out of Rs303.66 billion budgeted allocation.

The government also released a total of Rs151.8 billion (77 percent), including Rs70.85 billion (78.2 percent) foreign aid out of Rs197.5 billion for development budget of corporations; Rs140.4 billion including Rs63.55 billion foreign aid for the projects of the National Highways Authority (NHA); and Rs11.42 billion including Rs7.3 billion foreign aid for the National Transmission and Despatch Company (NTDC)/ Pakistan Electric Power Company (PEPCO).

The ministry released a total of Rs33.59 billion (75 percent) including Rs2.35 billion foreign aid out of Rs44.85 billion budgeted allocation for development projects of special areas; Rs20.75 billion including Rs1.52 billion foreign aid for development projects of the Azad Jammu and Kashmir (AJK); and Rs12.84 billion including Rs833.934 million foreign aid for Gilgit-Baltistan for financial year 2019-2020.

The government released Rs26.78 billion for security enhancement against Rs32.5 billion budgeted allocation.

The government released Rs30.1 billion for the development projects of the Cabinet Division against Rs37.986 billion total budgeted allocation, Rs1.64 billion for development projects of the Aviation Division against the total of Rs1.27 billion budgeted allocation, which is more than Rs0.47 billion of the allocation, Rs6 billion for development projects of Climate Change Division, Rs50 million for Commerce Division, Rs1.36 billion for Defense Production Division, and Rs6.84 billion for Finance Division.

The Ministry of Planning, Development and Reforms released Rs10.14 billion for development projects of the Railways Division against Rs16 billion budgeted allocation, Rs2.12 billion for development projects of Science and Technology Research Division, Rs4.24 billion for Revenue Division, Rs732 million for Industries and Production Division, Rs208.48 million for Information and Broadcasting Division, and Rs3 billion for Information Technology and Telecom Division.

The ministry said that Rs2.2 billion had been released for development projects of the Federal Education and Professional Training Division out of Rs4.796 billion budgeted allocation, and Rs22.71 billion including Rs83.26 million foreign aid had been released out of Rs29 billion for the development projects of the Higher Education Commission.

The government released Rs6.09 billion out of Rs9.85 billion for development projects of Interior Division, and Rs 7 billion for National Health Services, Regulations and Coordination Division.

A total of Rs19.9 million has been released for Foreign Affairs Division against Rs29.77 million budgeted allocation.

The ministry released a total of Rs51.57 billion for Water Resources Division including Rs4.7 billion foreign aid, Rs931.66 million for Planning, Development and Reforms Division, Rs58.5 million for Narcotics Control Division, Rs229.4 million for Pakistan Nuclear Regulatory Authority, and Rs81 million for Textile Industry Division.

A total of Rs251.59 million has been released for development projects of Defence Division, and Rs8.167 billion for the National Food Security and Research Division.

The government released Rs2 billion for the development projects of the Earthquake Reconstruction and Rehabilitation Authority (ERRA).

A total of Rs23 billion funds have been released out of Rs48 billion budgeted allocation under the Merged Areas (Fata) 10 Years Development Plan.

The government released Rs9.683 billion out of Rs24 billion budgeted allocation for development projects of merged districts in the Khyber-Pakhtunkhwa.

The funds are released as per quarterly ceilings; first quarter (July-September) 20 percent, second quarter (October-December) 30 percent, third quarter (January-March) 30 percent, and fourth quarter (April-June) 20 percent.