As an important financial step, the government of Pakistan has cut Rs173 billion from the Public Sector Development Program (PSDP). This is in order to cope with the increased load of subsidy for petroleum. This was revealed in an official statement issued Wednesday.
According to reports, the reduction in spending was made by all ministries through proportionate cuts. A few sectors were exceptions, where small cuts were imposed.
Major cuts hit infrastructure and water projects
Notably, the biggest single cut was on the National Highway Authority. Rs38 billion was cut, reducing its budget from Rs223 billion to Rs185 billion. Thus far, the authority had utilized Rs73 billion. This shows delays in financial releases by the ministry of finance.
Likewise, there were significant cuts in the water sector. The allocation for water projects was cut by Rs23 billion. The Water Resources Division was cut by Rs123 billion, making their budget Rs106.6 billion. In the first nine months, expenditures in this sector amounted to Rs47 billion.
Also, expenditures on provincial development projects have been cut by Rs22.5 billion. This reduced them to Rs79.1 billion, out of which Rs36.2 billion had been utilized. Additionally, the Power Division has had Rs16 billion cut. This cut its allocation to Rs75 billion, out of which Rs41 billion had been utilized.
Social sectors and regions also affected
At the same time, development funding allocated to the consolidated districts of Khyber Pakhtunkhwa was slashed by Rs11.2 billion. This left Rs54.2 billion to allocate. Funds for development spending in Azad Kashmir and Gilgit-Baltistan were further slashed as well.
Also, the budget of the Ministry of Federal Education and Professional Training fell by Rs5.5 billion. This dropped it to Rs26.6 billion. The budget of the Higher Education Commission was reduced by Rs7.2 billion to Rs35 billion.
Lastly, the development budget for the health sector fell by Rs2.4 billion to Rs11.6 billion. The budget of the Ministry of Defence was slashed by Rs1.8 billion to Rs9 billion.
