ISLAMABAD – Federal Minister for Planning, Development and Special Initiative, Asad Umar has said that total Public Sector Development Programme (PSDP) spending in 2020-21 was Rs 659 billion against the allocations of Rs 650 billion or 101.4per cent terming it the highest utilisation since 2011-12.
“Total PSDP spending in 2020 -21 was Rs 659 billion vs a target of Rs 650 billion or 101.4per cent,” the Federal Minister for Planning Development and Special initiative Asad Umar tweeted.
He further claimed that this is the highest development funds utilisation since 2011-12. “In a year of Covid restrictions, this exceptionally high development spending reflects resolve of PMIK to accelerate growth,” he added.
It is worth to mention here that the PSDP utilisation as of June 1st, shared with the National Economic Council was only Rs 421 billion of the total federal developmental outlay of Rs 650 billion. But interestingly the government utilised Rs 238 billion in the last month of the fiscal 2020-21.
Regarding the high utilisation of developmental budget in the fiscal 2020-21, a source in the commission told the scribe that there were two main reasons for the high expenditure. One reason was the utilisation of foreign aid which was almost 29 per cent higher than the allocation in the PSDP 2020-21, secondly heavy adjustments were made and unutilised funds were diverted from one ministry or division to others. Usually the planning commission re-appropriates funds from one slow moving project of the ministry or division to the fast moving project of the same ministry or division, the source explained. But under adjustments, funds are being transferred from the slow moving projects of one ministry or division to the fast moving projects of other ministries and division. This was done to show the utilisation on higher side, the source maintained.
In 2018-19 against the allocation of Rs 675 billion, the expenditure was Rs 562 billion in 2019-20 against the allocation of Rs 701 billion the expenditure was Rs 622 billion.