Slashing PSDP: Govt finds innovative means to deflect criticism

ISLAMABAD: In the wake of downward revision in the development budget from Rs900 billion to Rs700 billion under the IMF’s conditions, the government has so far utilized Rs260 billion for the execution of schemes during the first six months (July-Dec) period of the current fiscal year.

In order to keep the budget deficit and primary deficit within the envisaged limits, the PTI-led government slashed down the allocation of Public Sector Development Program (PSDP) by Rs200 billion, bringing it down from Rs900 billion to Rs700 billion for the current fiscal year.

The Ministry of Planning and Development undertook some innovative methods; instead of slashing down the allocation of schemes to adjust downward revision of Rs200 billion, they decided to pursue the policy of adjusting releases accordingly for avoiding criticism that the allocation of certain number of projects was slashed down. When contacted, the Spokesperson Ministry of Planning on Wednesday said that there was a total allocation of Rs900 billion for the PSDP during the current fiscal year out of which the Ministry of Planning made authorization of Rs448 billion in the first half of the current fiscal year.

The Ministry of Planning has so far released Rs309 billion in the first half of the current fiscal year, out of which the actual utilization of funds stood at Rs260 billion.

It was also claimed by the mandarins at the Ministry of Planning that the utilization of funds was 18 percent higher in the first six months of the current fiscal year compared to the same period of the last fiscal year. They further said that the ministries/divisions utilized 29 percent funds out of the total allocated amount of PSDP for the current fiscal year.