Economic deprivation and the denial of basic human rights have exacerbated structured poverty and inequality in rural and semi-urban areas of the country.
The self-reliant economic development models are still a distant dream despite an increase in country’s GDP of over 5.28pc.
Like every year, this year as well the government proudly presented a Rs4.8 trillion federal budget in contradiction of ground realities.
The government has reserved Rs2,113 billion for the public sector development programme (PSDP), which is 5.9pc of GDP.
A major portion of the PSDP budget’s total expenditure, Rs1,001bn, have been allocated for the Federal Public Sector Development Programme in 2017/18.
This is an increase of 25.1pc from last year’s allocation of Rs800bn, of which Rs715bn were actually spent. This means that in 2016/17 the government spent Rs85bn less than the actual estimate.
Of the total federal PSDP in the current year, the government has allocated Rs40bn and Rs45bn for the Special Federal Development Program (SFDP) and Relief and Rehabilitation of IDPs accordingly. This is 8pc of the total federal PSDP outlay.
On the other hand, during 2016/17 the government allocated Rs28bn for the SFDP and Rs100bn for the Relief and Rehabilitation of IDPs. While the total coalesced to Rs128bn, it unfortunately remained unspent.
Furthermore, the corporations — WAPDA and NHA — are also part of the federal PSDP and have been allocated Rs380bn. This is 38pc of the total federal PSDP provision.
During 2016/17, both these corporations spend Rs344bn, or 48pc of total federal PSDP. This means that a large portion of federal PSDP outlay only goes to these two corporations.
The federal PSDP also allocates around Rs30bn for the Prime Minister’s Global SDGs Achievement Programme. This is 3pc of the total federal PSDP allocation.
Last year Rs20bn were allocated but the spending increased to Rs42bn, double the actual amount.
In addition, Federal Ministries/Divisions have been allocated Rs378bn, or 38pc of the total. During 2016/17, Rs282bn were allocated, but spending went up to Rs298.52bn, or 42pc of the total. In this head expenses had been overspent.
Above all, development expenditure outside the PSDP has been estimated at Rs152.2bn. Last year, it was estimated at Rs156.6bn, but the actual spend was Rs127bn. It shows that out of total estimated expenditure only 81pc was utilised.
Outside federal public sector development programme, the Benazir Income Support Programme has been allocated Rs121bn in 2017/18. However, during 2016/17 the BISP was allocated Rs115bn, but the spending remained around Rs111bn, less than the actual allocation.
The government has initiated new projects in the federal PSDP budget such as Clean Drinking Water for All at Rs12.5bn, Special Provision for Competition of CPEC Projects at Rs5bn and Rs12.5bn for Energy for All.
— Murtaza Talpur is Lead Researcher, and Abbas Khalid is Research Officer, at the Centre for Finance for Development
Published in Dawn, The Business and Finance Weekly, August 7th, 2017
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