The maximum reduction was seen in expenditures on rural development that came down to just Rs5.7 billion during the first three quarters (July-March) of the previous fiscal year 2013-14 , according to a summary of the Poverty Reduction Strategy Paper (PRSP) budgetary expenditures. The expenditures were Rs18 billion or 76% less than the spending during the comparative period of the previous fiscal year.
The PRSP initiative had been launched at the beginning of the 21st century with close collaboration of international lending agencies aimed at improving and monitoring pro-poor spending in Pakistan.
The official bulletin released by the Ministry of Finance showed that during the first three quarters of fiscal year 2012-13 the government had spent a total of Rs23.7 billion on rural development. Punjab, which had spent Rs12.9 billion on rural development in July-March of FY13, carried out an expense of Rs2.5 billion in the first three quarters of FY14.
Sindh’s spending on rural development also came down to just Rs294 million from an already low level of Rs534 million. Khyber-Pakhtunkhwa could spend only Rs1.4 billion – a reduction of Rs6.2 billion or 81% – while Balochistan spent Rs880 million as against a spending of Rs2.7 billion.
According to the 1998 population census, a significant majority of the country’s population lives in rural areas. Under the constitution, rural development is the responsibility of the federating units.
Natural calamities, other disasters
In the area of natural calamities and other disasters, the federal and provincial governments spent only a combined total of Rs10.8 billion during July-March period of FY14. The spending was Rs3.1 billion or 22.5% less than the comparative period of FY13, according to the official bulletin.
The spending on disaster mitigation by federal and Balochistan governments increased while it significantly went down in case of the other three provinces. The federal government spent Rs3.5 billion in July-March period of FY14 as compared to Rs2.5 billion of the comparative period of FY13. Balochistan spent Rs2.8 billion as against Rs1.5 billion.
However, Punjab government could spend only Rs2.7 billion, which was Rs1.7 billion or 39% less than the comparative period. Sindh spent just Rs791 million on disaster mitigation, which was Rs2.6 billion or 77% less. Khyber Pakhtunkhwa spent Rs1.1 billion as against about Rs2 billion spending in the previous year’s comparative period.
Road construction
Similarly, the spending on construction of roads, highways and bridges stood at Rs42.8 billion in July-March 2013-14 – a reduction of Rs13.5 billion or about one-fourth over the comparative period. The four federating units spent less than the previous year.
Overall, Rs1.2 trillion were spent by federal and four provincial governments under the poverty reduction initiative, which were Rs31 billion or 2.7% up from the previous year’s comparative period. However, the governments have started booking current expenses on law and order, justice administration and construction-related activities that have distorted pro-poor spending figures, according to analysts.
During first three quarters of the previous fiscal, the combined spending on law and order was Rs171 billion, almost entire was current spending and on account of salaries that have nothing to do with poverty reduction. On justice administration Rs17 billion were spent by the federation and federating units and three-fourth of the total spending was recurring.
On education, the combined spending by federal and provincial governments stood at Rs366 billion –up by Rs47 billion or 14.7%. The spending on health by four provincial and the federal governments was Rs126.5 billion –higher by Rs25 billion or almost one-fourth.
Published in The Express Tribune, September 11th, 2014.
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