ISLAMABAD: The government approved the immediate release of more than Rs61.3 billion in funds for the parliamentarians’ schemes aimed at utilizing the maximum amount for politically oriented projects before the end of its term.
The Planning Commission will release funds in the first month of the current fiscal year. It will also unlock funding for other projects. Disagreements over funding amounts for parliamentarians’ schemes had halted releases for other projects.
The political leadership wanted to use the entire Rs90 billion allocation for Sustainable Development Goals (SDGs) in the first quarter.
However, the bureaucracy suggested releasing only up to half of the budget. They have decided to release Rs41 billion from this year’s budget and Rs20.3 billion from the previous fiscal year’s leftover funds for SDGs. In total, it allocates Rs61.3 billion or 68% of this year’s approved budget to parliamentarians’ schemes.
According to the finance ministry guidelines, 15% of the annual budget can be used in the first quarter. However, the ministry made an exception for parliamentarians’ schemes.
Disagreement over SDGs funds has caused a freeze in authorizing the development budget for the first quarter. According to sources, funds release is zero, despite a quarterly development spending ceiling of Rs131 billion out of a total annual budget of Rs950 billion.
Planning Minister Ahsan Iqbal, acting as the Deputy Chairman of the Planning Commission, approved the release of 50% of the SDGs funds on Monday. He announced that they will release the approved funds.
The Planning Ministry approved Rs61.3 billion for release to the Cabinet Division. They will manage and disburse the funds based on decisions from a steering committee and requests from constituencies. The Finance Ministry issued guidelines for fund releases in four quarters.
Last year, Rs116 billion was allocated for parliamentarians’ schemes, but only Rs95.4 billion were disbursed. The current budget for parliamentarians’ schemes is Rs61.2 billion for the next three months. Concerns arise over the inclusion of the previous year’s balance in the budget. There are worries about limited funds for other projects and potential wastage as the government’s term nears its end.
After allocating over Rs61 billion for parliamentarians’ schemes, only Rs70 billion remains for the first quarter of 1,100 PSDP projects. The outgoing government shows little concern for fiscal discipline, convening separate meetings to approve new development projects.
The Central Development Working Party (CDWP) will approve projects worth Rs1.05 trillion, including reconsidering the Rs308 billion Sukku-Hyderabad motorway.
CDWP also considers the Rs377 billion Prime Minister’s Programme for Solarisation, despite its previous approval by the Executive Committee of the National Economic Council (Ecnec). Ecnec, led by Finance Minister Ishaq Dar, will approve the Prime Minister’s Laptop Scheme, Sehat Sahulat Programme, modernization of hydromet service, and the water requirements for Karachi’s K-IV project.
