Discretionary fund: Even after overshooting budget, PM gets another Rs5b

Over 12 development projects affected by the allocation.

ISLAMABAD:

For the second time in two months, the government has slashed the budget for ongoing projects to create space for the prime minister’s increased discretionary spending. These funds have been increased by another Rs5 billion to a whopping Rs37 billion - a first in the country’s history.

Such use of taxpayers’ money to win votes by the ruling Pakistan Peoples Party (PPP) is a clear instance of immoral and reckless spending, say analysts. Spokesman for the Planning Commission Rizwan Malik has confirmed to The Express Tribune that Rs5 billion additional funds have been allocated under the Peoples Works Programme-II, known as PWP-II, by readjusting the Public Sector Development Programme (PSDP). He conceded that the readjustments will have implications on some of the ongoing projects.

Sources in the finance ministry have corroborated Malik’s statements. Over a dozen ongoing projects will be affected by these alterations.

In an earlier episode, the government cut Rs10 billion from ongoing projects, because the PM had consumed his entire allocation of Rs22 billion in just three and a half months after assuming office. Of this, Rs4 billion had been withdrawn from Fata’s development funds.



This time, the total Rs37 billion in the premier’s discretionary fund are allocated under the PWP-II. Taking this Rs5 billion increase into consideration, PM Raja Pervaiz Ashraf has, on average, spent Rs205.5 million per day in the last six months.

According to the sources, these funds are largely distributed in PPP’s constituencies and rules have been flouted while approving schemes. Even as this immoral spending spree continues, talks have been initiated with International Monetary Fund for a second bailout programme.

The sources added that even Finance Minister Dr Abdul Hafeez Shaikh does not have access to the money trail as the entire record is in the custody of the PM Secretariat and the Cabinet Division. Shaikh had asked Planning Secretary Javed Malik to monitor spending sanctioned by the PM but so far nothing has been done.



And yet, the readjustments are approved by the finance minister. The fresh allocation of Rs5 billion comes after promises he made when he stated that he would not allow any increase in discretionary funds for the premier’s utilisation. While talking to media persons about a fortnight ago, Shaikh commented that the PWP-II would remain below the level of the last fiscal year. However, during the financial year that ended on June 30, 2012, the total spending under PWP-II remained at Rs33 billion, including a Rs5 billion supplementary grant.

These arbitrary allocations are contradictory to the National Economic Council’s decision that equitable development would be carried out across the country through a more efficient distribution of resources. They also raise questions about the entire process of obtaining the parliament’s approval for budgets. The parliament did initially approve Rs22 billion for the PM, but this amount has blatantly been increased by 68% in just six months without notification.

Published in The Express Tribune, January 2^nd, 2013.