1/10th cut: Federal govt slashes BISP spending by Rs7.3 billion
Deprives over half a million families of monthly cash assistance.
ISLAMABAD:
The federal government has slashed allocations for the Benazir Income Support Programme (BISP) by one-tenth to Rs67.7 billion against the budgetary allocations of Rs75 billion for the last fiscal year, depriving as many as 506,944 families of the promised monthly cash assistance.
An annual bulletin of the finance ministry revealed that against its tall claims of spending Rs75 billion on the poor under the cash-for-poor programme, the Pakistan Muslim League-Nawaz (PML-N) government actually spent Rs67.7 billion in the fiscal year 2013-14 (FY14). The spending was 9.7% or Rs7.3 billion less than the amount approved by the National Assembly while sanctioning the first budget of the PML-N government.
In FY14, the government gave a 1,200-rupee monthly stipend or Rs14,400 annual cash assistance to each identified household. By this account as many as 506,944 families were excluded despite deserving donations.
The BISP spending is part of the Annual Poverty Reduction Strategy Paper (PRSP) expenditures. According to the PRSP summary for 2013-14, poverty reduction expenditures by the federal and four provincial governments stood at Rs1.934 trillion, which were just Rs21 billion or 1% higher than the previous year’s spending.
The PRSP initiative was launched in 2000, with close collaboration of international lending agencies aimed at improving and monitoring pro-poor spending in Pakistan.
While unveiling his government’s first budget in the parliament, Finance Minister Ishaq Dar had stated: “From Rs40 billion spent under the (BISP) during 2012-13, we will be raising its size to Rs75 billion, which is an increase of 87.5% in the programme.”
For the current fiscal year, the government has enhanced allocation to Rs118 billion, according to Dar’s second budget speech.
The government has revised the BISP spending upwards during Pakistan Peoples Party’s last year to Rs46 billion against its earlier estimates of Rs40 billion. Compared to the revised figure of Rs46 billion, the BISP spending in the first year of the PML-N government was higher by Rs21.7 billion or 48%. Dar had claimed to take this ratio to 87%.
According to the PRSP summary, the spending on health and education by the federal and provincial governments significantly increased during the previous fiscal year. However, the analysis of the figures suggests that most of the spending was recurring and spent on paying salaries of the staff.
The combined federal and provincial spending on education in the previous financial year remained at Rs537.6 billion – higher by Rs57.8 billion or 12% over the previous fiscal year. Out of the total spending, 84% or Rs453.8 billion was on account of current education expenditures.
On health, the combined spending increased to Rs202 billion – up from Rs161.2 billion. About three-fourths of the total spending was on account of current expenditures.
The mother and child health yet again remained one of the neglected areas where the combined spending remained at just Rs384 million against the previous year’s spending of Rs253 million. The federal government spent Rs100 million on mother and child health, the Punjab government Rs223 million and Khyber-Pakhtunkhwa government spent Rs61 million. Sindh and Balochistan governments did not spend a penny on mother and child health, according to the PRSP summary.
The combined spending on social security and welfare also dropped by 4% to Rs23.8 billion. The spending on natural calamities and other disasters contracted 43% to just Rs14.3 billion. Similarly, spending on rural development also decreased 53% to Rs17.2 billion.
Published in The Express Tribune, October 5th, 2014.
The federal government has slashed allocations for the Benazir Income Support Programme (BISP) by one-tenth to Rs67.7 billion against the budgetary allocations of Rs75 billion for the last fiscal year, depriving as many as 506,944 families of the promised monthly cash assistance.
An annual bulletin of the finance ministry revealed that against its tall claims of spending Rs75 billion on the poor under the cash-for-poor programme, the Pakistan Muslim League-Nawaz (PML-N) government actually spent Rs67.7 billion in the fiscal year 2013-14 (FY14). The spending was 9.7% or Rs7.3 billion less than the amount approved by the National Assembly while sanctioning the first budget of the PML-N government.
In FY14, the government gave a 1,200-rupee monthly stipend or Rs14,400 annual cash assistance to each identified household. By this account as many as 506,944 families were excluded despite deserving donations.
The BISP spending is part of the Annual Poverty Reduction Strategy Paper (PRSP) expenditures. According to the PRSP summary for 2013-14, poverty reduction expenditures by the federal and four provincial governments stood at Rs1.934 trillion, which were just Rs21 billion or 1% higher than the previous year’s spending.
The PRSP initiative was launched in 2000, with close collaboration of international lending agencies aimed at improving and monitoring pro-poor spending in Pakistan.
While unveiling his government’s first budget in the parliament, Finance Minister Ishaq Dar had stated: “From Rs40 billion spent under the (BISP) during 2012-13, we will be raising its size to Rs75 billion, which is an increase of 87.5% in the programme.”
For the current fiscal year, the government has enhanced allocation to Rs118 billion, according to Dar’s second budget speech.
The government has revised the BISP spending upwards during Pakistan Peoples Party’s last year to Rs46 billion against its earlier estimates of Rs40 billion. Compared to the revised figure of Rs46 billion, the BISP spending in the first year of the PML-N government was higher by Rs21.7 billion or 48%. Dar had claimed to take this ratio to 87%.
According to the PRSP summary, the spending on health and education by the federal and provincial governments significantly increased during the previous fiscal year. However, the analysis of the figures suggests that most of the spending was recurring and spent on paying salaries of the staff.
The combined federal and provincial spending on education in the previous financial year remained at Rs537.6 billion – higher by Rs57.8 billion or 12% over the previous fiscal year. Out of the total spending, 84% or Rs453.8 billion was on account of current education expenditures.
On health, the combined spending increased to Rs202 billion – up from Rs161.2 billion. About three-fourths of the total spending was on account of current expenditures.
The mother and child health yet again remained one of the neglected areas where the combined spending remained at just Rs384 million against the previous year’s spending of Rs253 million. The federal government spent Rs100 million on mother and child health, the Punjab government Rs223 million and Khyber-Pakhtunkhwa government spent Rs61 million. Sindh and Balochistan governments did not spend a penny on mother and child health, according to the PRSP summary.
The combined spending on social security and welfare also dropped by 4% to Rs23.8 billion. The spending on natural calamities and other disasters contracted 43% to just Rs14.3 billion. Similarly, spending on rural development also decreased 53% to Rs17.2 billion.
Published in The Express Tribune, October 5th, 2014.