CM Mahmood tells depts to ensure full utilisation of ADP budget

Finance minister says K-P’s share in net hydel profit likely to fall by Rs9b

PESHAWAR: Chief Minister Mahmood Khan has directed the provincial government’s departments to use the allocated development funds before the end of the financial year.

Funds allocated in the budget if not utilised get lapsed and return to the exchequer.

According to an official statement CM directed all administrative departments of the province to ensure 100% utilisation of the Annual Development Plan (ADP) budget. The directive comes when the financial year is about to expire in June.

“A progress review meeting on the utilisation of the development budget should be held monthly by every department so as to ensure optimum utilisation of resources and realisation of the development targets,” he said.

The chief minister further directed all the departments concerned to surrender all unutilised budget by April 15 so that proper allocation of resources can be made.

He said that previously the entire focus of development programmes was given to expansion of projects and construction of buildings and no focus was given to services delivery.

These views were stated by the CM while chairing the progress review meeting of ADP of provincial and merged areas.

The meeting was also informed that development projects worth Rs12.7 billion will be initiated in the newly merged districts soon. Most of these projects will be initiated by end of the on-going month.

Jhagra gives ADP review

While addressing a press conference regarding the ADP review meeting, the K-P Minister for Finance Taimur Saleem Jhagra added that due to proper financial planning the fiscal space has increased whereas the rationalisation of budget has also been made during the previous eight to nine months.

He said that despite financial constraints, the performance of K-P government has been optimum.

The finance minister further added that during the third quarter of on-going fiscal year, 78% of the development budget was released whereas the total expenditure against the released budget remained 66% which is equal to the third quarter expenditure of previous year.

He said that the K-P government will improve its financial monitoring system during the next fiscal year to ensure up to 80% expenditure.

The finance minister also told the media people that for the on-going fiscal year, a total of Rs181 billion were allocated for development projects out of which Rs119 billion were released and Rs90 billion have been spent so far.

Jhagra said that the ADP review meeting was informed that a total of Rs9,452 million have been allocated in the year 2018-19 for 308 projects related to construction and rehabilitation of roads throughout the province. The total expenditure of so far has been 93% in this regard.

The meeting was further informed that in the year 2018-19 a total of Rs3,427 million have been spent on 70 development projects of the Elementary and Secondary Education Department. In the health sector a total of Rs 3299 Million have been spent on 104 development projects so far.

In the water and irrigation sector, a total of Rs5,599 million development budget was released for 176 development projects against which 81% utilisation has been made so far. For the urban development, Rs1,543 million have been spent on 33 development projects where as for the drinking water supply schemes a total of Rs2,970 million have been released for 50 development projects out of which Rs2,287 million have been spent so far.

In the local government sector, a total of Rs1,282 million have been spent on 37 development projects whereas in the environment sector Rs22 million have been released against five development projects. The budget utilisation in environment sector has been 72% so far.

For the relief and rehabilitation development projects, a total of Rs723 million has been released for 28 development projects. Budget utilisation in the relief and rehabilitation sector has been 71%.

With regards to the 35 development projects in the law department, the meeting was informed that a total of Rs880 million have been allocated against which the budget utilisation has been 76% whereas in the sports department, Rs1,117 million have been spent on 67 development projects and Rs382 million have been spent on 17 development projects in the industries department so far.

While addressing the meeting, the chief minister stated that budget planning should be made keeping in view services delivery instead of expansion and construction of buildings so as to facilitate public on every level.

NFC Award

Speaking at the press conference held at Civil Secretariat Jhagra said that discussions over the ninth National Finance Commission (NFC) Award were still under way for want of consensus among the federating units.

Additional Chief Secretary Shahzad Bangash accompanied the finance minister.

He said that the 9th NFC Award was likely to be announced between December and March next year and it will become applicable from financial year 2020-21.

Relying to a query he said that the K-P’s share in net hydel profit has dropped by Rs9billion due to fall in hydroelectricity generation.

Owing to decline hydel generation, the centre now owes K-P Rs56 billion instead of earlier estimate of Rs65 billion. And out the said Rs56 billion, the province has received Rs20 billion, the finance minister said.

Published in The Express Tribune, April 5^th, 2019.