Bending the rules: Three multi-billion projects added for PM’s constituency

Schemes cost Rs7.7b; funds released by Planning Commission in violation of rules.

ISLAMABAD:

Prime Minister Raja Pervaiz Ashraf seems to have gone on a spending spree in his constituency as, in violation of laid down procedures, the Planning Commission has recently released funds for three multi-billion-rupee schemes in NA-51.

The total value of these schemes is Rs7.7 billion, out of which Rs4.1 billion has been released in the last four months, according to official documents of the PC.

The money has been released by relaxing rules enshrined to ensure fiscal discipline and prudent use of taxpayers’ money.

The schemes were not part of the Public Sector Development Programme (PSDP) 2012-13 - a document duly approved by the Cabinet and the National Assembly in the budget session. A spokesperson of the PC confirmed that the projects were added after the approval of the budget.

PSDP projects are finalised in the National Economic Council meeting, headed by the premier and attended by all chief ministers. Regional parity and strategic requirements of the country are the determining factors while allocating resources against the limited numbers of the projects.

The prime minister’s projects are in addition to a Rs6.5 billion Gujar Khan Package and Rs22 billion discretionary development budget that the premier has already consumed in just three-and-a-half months.

The three schemes have been adjusted in the development budget of the ministry of housing and works.

The total development budget of the housing ministry was Rs2.59 billion, when the national budget was approved in June. However, after the inclusion of the three schemes, the total has shot up to Rs6.74 billion, out of which.

Some Rs5.2 billion - or 77% - has been released by the government in just four months.

According to the finance ministry’s rules, a maximum of only 20% of the total cost in each quarter can be released during the first two quarters of the fiscal year. The limit, however, was relaxed by the finance ministry to pave way for the special umbrella scheme.

Out of the three projects, one umbrella scheme consists of 33 miscellaneous development schemes in various union councils of Gujar Khan - the premier’s hometown. The total cost of this umbrella scheme is Rs1.65 billion.

Doubts linger on how the umbrella scheme was added in the PSDP document and where the funding came from.

When contacted, spokesperson for the PC Ishfaqqullah Khan said that the umbrella scheme was not brought up at the Commission’s forum, and added that he was unaware about the source of the funds.

Projects can be added in the PSDP document during the course of the year.

This, however, requires either the transfer of funds from one project of the particular division (in this case housing ministry) to the other project, or the finance ministry provides an additional supplementary budget.

Since the cost of the new schemes is more than the original allocation, the adjusting of funds seems unlikely. Furthermore, finance ministry spokesperson Rana Assad Amin said that, as far as he knew, a fresh supplementary development grant was not issued. He added that the size of the total PSDP was still Rs360 billion for this year.

Ishfaqqullah said that the releases for the other two projects were made by the PC. These schemes are the dualisation of Mandra-Chakwal Road worth Rs2.67 billion and dualisation of Sohawa-Chakwal Road worth Rs3.3 billion.

Yet again, fiscal discipline rules were relaxed to pave the way to release Rs2.1 billion in just four months for the project of the Mandra-Chakwal project.

With the premier’s hands on maximum funds, many important projects of other ministries have not received their required funds.

Documents showed that, during last four months, not a single penny was released for projects of the Ministry of Defence Production, Establishment Division, and Federal Tax Ombudsman, while the ministry of human rights has only received 2.3% of its total allocation.

Published in The Express Tribune, November 4^th, 2012.