Allocation vs utilisation: Money delayed is money wasted

Sindh fails to show much progress when it comes to spending budget funds

KARACHI: The government paints a rosy picture when it passes the budget every summer but every year it fails to utilise the money for any good.

This year's progress report published by the finance department, a copy of which is available with The Express Tribune, shows that 379 schemes in the local government department, 284 in the education department and 130 in the health department have not received a single penny in the last nine months, from July 2014 to March this year.

According to the finance department officials, the funds are released to the departments after they submit their development projects to them. "Most of the departments have not given us details of the projects," said a deputy secretary of the finance department on the condition of anonymity, adding that some projects need the CM's approval. "This has caused delays in releasing the amount."

Health

The health department had planned 208 schemes with an allocation of Rs13.2 billion in the annual development programme but only Rs7.2 billion have been released in the past nine months. Of this amount, only Rs2.8 billion has been utilised.

The department had earmarked Rs500 million for the Dengue Prevention and Control Programme for various districts of Sindh but no money was released. Similarly, Rs600 million were set aside for the installation of a solar energy system at all cold storages in Sindh but the money was not released.

Most of the funds are utilised in the last quarter due to technical problems and delays from the finance department in releasing the funds, explained health minister Jam Mehtab Dahar. Among other schemes in the health department that failed to receive any funds were development works in cardiology hospitals, kidney centres and a paediatrics hospital in Hyderabad, the establishment of a trauma centre in New Karachi and an infectious diseases control department in all teaching hospitals in Sindh, an OPD complex at Civil Hospital, Karachi, waste management at all teaching hospitals in Sindh and a children's hospital at SIUT Karachi.

Education

In the education sector, the budget had promised establishment of model schools, cadet colleges, and the upgradation and construction of primary and secondary schools. None of these projects were able to go ahead due to a lack of funds.

According to the report, Rs1 billion were earmarked for the establishment of public schools for girls at the divisional level in Sindh. Around Rs10 million were supposed to be released this year but not a single penny has been released so far. Similarly, Rs120 million were allocated for the upgradation of primary and middle schools in Mirpurkhas, Larkana, Jamshoro, Hyderabad, Matiari, Tando Muhammad Khan and Sukkur but the funds have yet to be released.

Home department

The home department had planned 82 schemes in the budget but have only received funds for 19 of them. "Most of the schemes pertain to the construction of barracks and boundary walls, installation of mobile jammers and improvements in the security system at all jails," said an official of the home department. "The funds have yet to be released."

Local government

The local government department was allocated Rs21.9 billion for development schemes but it has only spent Rs3 billion so far. According to local government minister Sharjeel Memon, some development work has started but some schemes were delayed because the federal government failed to release the funds.

"As per our budget estimates, we were supposed to receive Rs355.7 billion from the federal government in the last nine months but, unfortunately, we have received only Rs283.7 billion with a shortfall of Rs72 billion," said Memon. "This is a major factor that delayed our schemes."

Published in The Express Tribune, May 8^th, 2015.