Government Expenditure: 30% of Total Development Budget Utilized in Six Months
Published on: January 16, 2024.
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Government Utilizes Only 30% of Development Budget in Half Year
Muhammad Haris
In a concerning revelation, it has been reported that the government has only used 30% of the total development budget during the first half of the fiscal year. The amount authorized for spending under the Public Sector Development Fund (PSDP) in the last six months amounted to Rs 306 billion, which is only 32% of the total allocation.
According to data received from the Ministry of Planning, out of the approved authorization of approximately Rs 306 billion for the six months of the current fiscal year, only Rs 149 billion has been utilized. This indicates a significant underutilization of funds.
The total allocation for the current fiscal year, FY24, was announced to be Rs 940 billion in June. Out of this, Rs 865 billion was expected to be raised from domestic sources, while Rs 75 billion was planned to be obtained from external sources.
The spending pattern of the allocated funds reveals that the Cabinet Division has utilized Rs 35 billion, the provinces and special areas have spent Rs 29.5 billion, the water sector has utilized Rs 25 billion, and the Railways division has spent Rs 11 billion.
The reduction in spending can be attributed to higher debt and interest payments. Sources indicate that the International Monetary Fund (IMF) has recommended cutting spending on projects that are in their early stages and prioritizing completion of essential ones.
This reduction in spending aims to help trim the fiscal deficit, which is a crucial step in ensuring economic stability. Experts believe that it is necessary to align spending with available resources to maintain a sustainable financial position for the government.
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