Islamabad:
The government spent RS905 billion on development schemes in the last financial year, which was lower than the award and may now require a downward audit in the 2.7% financial growth rate that had been prepared on the basis of RS1.1 trillion in expenses.
Of RS905 billion was just over half-or RS456 billion-used over the past two months (May-June), which also emphasized the need to revise the current budget strategy that artificially suppresses expenses.
According to preliminary figures, the federal government spent RS905 billion under the public sector development program (PSDP) in the 2024-25 financial year, which ended Monday.
The cost of RS905 Billion was less than RS1.4 trillion Original budget approved by the National Assembly for the financial year 2024-25. However, the government subsequently cut PSDP to RS1.1 trillion, but still remained the actual expenses lower than the revised budget.
For the last financial year, the government had announced a 2.7% financial growth rate, which was based on the assumption that the downward revised RS1.1 Billion PSDP would be fully used.
In a press release last month, the head of the Pakistan Bureau of Statistics (PBS), Dr. Naeemuz Zafar that the GDP number assumed that RS1.1 trillion would be used.
An official in PBS said Wednesday that, following the actual expenses of RS905 billion user, there will be some influence on economic growth calculations. He said that the exact impact could not be immediately determined.
In a speech with Express Pakinomist, Federal Minister of Planning and Development, Ahsan Iqbal said: “We had almost touched RS1 trillion expenses, but due to slow approvals from Accounting General Pakistan -AGPR (AGPR) remained expenses of RS905 billion.”
Sources said the Ministry of Finance had instructed the Department of AGPR to slow down releases during the last days of June to meet the International Monetary Fund (IMF) -related budget targets.
According to the current strategy for budget relief strategy, approx. 40% of the total budget sanctioned in the last quarter, often resulting in subpar expenses and can also cause leaks.
A member of the Senate, which is also in the construction industry, told The Express Pakinomist on condition of anonymity that AGPR does not clear the contractors’ control due to budget -related restrictions.
During the period July-April in the last financial year, the government had spent RS449 billion. But in the last two months, another RS456 billion was booked under development costs. In June alone, the RS308 billion in development costs were shown.
However, the planning minister said the development work did not stop in the third quarter of the last financial year and that it was only the money released and booked in May-June.
For the sake of the IMF program, the Ministry of Finance pressed PSDP to reach quarterly and annual primary excess targets.
A recently released planning minister’s report stated that lower than planned expenses had affected projects across different sectors. Despite the thin fiscal space, the government still added either new projects or revised the cost of already approved schemes upwards.
Greater expenses
According to the preliminary figures, the government spent RS60.5 billion on parliamentarians’ schemes in the last financial year. The expenses were more than the downward revised budget.
But Iqbal said the government, after originally decided to revise the budget down, the government decided to preserve the original allocation to the Sustainable Development Objective program (SDGS).
The parliamentarians’ schemes are labeled as SDG initiatives.
Another RS69.5 billion was spent on provincial projects financed by the federal government. Financing provincial schemes is against the obligations given to the IMF and the national fiscal covenant.
About RS64 billion was spent on schemes made in the previously federally managed tribal areas, now merged with Khyber-Pakhtunkhwa.
Against a downward allocation of RS61 billion, the cost of higher education remained at RS58.8 billion. Pakistan Atomic Energy Commission received its full RS25 billion budget, but for this financial year, the government has drastically reduced its award.
Development costs from Space & Upper Atmosphere Research Commission (Suparco) remained on the RS30.4 billion against the award of RS41 billion.
The government spent RS154 billion on projects from the Ministry of Water Resources, which also includes the cost of two large dams. The award was RS195 billion. For this financial year, the government has reduced the allocation of the water sector by 28%.
Expenses for highways and highways under National Highway Authority amounted to RS144 billion against RS161 billion allocation.
Development costs for power sector projects accounted for RS88 billion in the opposite allocation of RS98 billion.
