Fund shortage not a problem: ADP use stands at 24% in first half

Figures presented to CM, plausibility of lapse looms large.

PESHAWAR: As the 2014-15 fiscal year’s third quarter almost comes to a close, the Khyber-Pakhtunkhwa government reported spending only 24% of its Annual Development Programme (ADP) fund – its primary kitty – in the first half of the fiscal year 2014-15.

The complete analysis of the figures was presented to Chief Minister Pervez Khattak after being reviewed at a committee meeting on February 4.

A majority of the government departments are forced to drag their feet over a lack of funds as only Rs33.47 billion out of Rs139.8 billion was doled out as of December 31, 2014. The total consists of Rs39.755 billion of foreign aid and Rs100.05 billion shared by the federal government.



The likelihood of a lapse of unutilised funds looms large as the waste of resources translates into a lack of planning and foresight.

Core departments like law-enforcement and health require an injection of capital urgently, said a government official while talking to The Express Tribune. He added most of the development projects under way are either based on public-private partnerships or are externally funded.

A weak first-half performance of the departments in question will obstruct most of the government’s macro objectives and a 100% utilisation of the K-P government’s war chest is highly unlikely.

Another official seeking anonymity said departments like mines and minerals or science and technology are experiencing dormancy despite having the capacity to initiate revenue-generating projects. “If productive departments work at a snail’s pace, how will the government even be able to meet its expenses like salaries?” he questioned.

In control?

However, secretary planning and development Syed Zafar Ali Shah responded to the criticism by saying the ADP utilisation rate this year is better than previous figures and most of the targets will be achieved by the end of the fiscal year.

“The current figure is misleading. It is only (about) the midyear and we still have two quarters left,” he told The Express Tribune. Shah added the annual trend will be quite different from how it stands at the moment. The secretary said the first-half usually comprises approvals, clarifications and consultations and fund utilisation picks up henceforth.

Department	% age utilisation of allocation
Health	18
Transport	10
Local government and rural development	10
Industries	10
Mines and minerals	7
Social welfare	21
Science and technology	10
Energy and power	43
Agriculture	37
Irrigation	33
Forest	32
Elementary and secondary education	33
Higher education	30

Source: Data obtained from the review committee

 

Published in The Express Tribune, March 7^th, 2015.