PSDP slash

Financial constraints are hampering public spending, and it is widely estimated that budgetary allocations will not be met. The federally-funded PSDP has nosedived. In the first five-month of the ongoing fiscal year, a mere 6.6% of the targeted 26% revenue has come its way. That means only Rs92 billion have been utilised as of November 20, 2024, against a revised budget allocation of Rs1.1 trillion. This also includes a downslide from initially funded Rs1.4 trillion, to bring it in line with the IMF agreement. Any downward revision of public sector spending is tantamount to falling back on original budget estimates, something that often results in mini-budgets. It also goes without saying that this year's utilisation was significantly lower than last year's Rs117 billion owing to a strict economic stabilisation programme.

The Ministry of Planning and Development, nonetheless, is making efforts to ensure that projects are completed in time, through better coordination among various departments and divisions. But due to delays in funds disbursement, it becomes a gigantic task to cut the ribbon in time and to make sure that the quality of the project is upheld. This irregularity provides gaps for corruption and administrative fudging. Thus, as a contingency measure the government has rationed the allocation into four quarters of the fiscal year by keeping a tab on incoming revenue. One of the major reasons for lower utilisation this year is fewer disbursements by global lenders that stood at just Rs2.5 billion in the first two quarters.

The drawback is evident as the road infrastructure projects of Balochistan, comprising major Motorway initiatives, to the tune of Rs406 billion, have been shelved for the next three years. So is the case with other federally-funded avenues. This new revised outlay is owing to pressure on the economy, in the wake of a depreciating rupee, high energy prices and a deep slump in exports. This necessitates revisiting the entire budgetary allocation spectrum in the absence of FDI and a nail-biting commitment with the donors that are more interested in statistical order than development at grass-root level.