For the first time, annual public development spending raised from 37pc to 40pc for the first quarter
By looking at the details, it is possible that the annual budget can go up to 40pc in the next few months against the amount set for half of the year.
In the recent history of Pakistan, it is the first time that the budget for the annual public development program has raised from 37pc to 40pc for the first quarter of the fiscal year. The release of RS 257.17bn has been authorized by the commission for the development projects as of Nov 1, 2019. That amounted to Rs701bn and a full year allocation of 37pc.
Rs105.46bn spending was permitted by the commission in the last fiscal year and accounting for 15.6pc of the complete year allocation of Rs675bn. It is accorded with advice by (IMF) to the federal and provincial governments to make maximum deployment of development funds as an incentive to resuscitate economic growth which is estimated at 2.4pc for the recent year.
20pc is allowed to be spent in the first and the second quarter of the fiscal year by the ministries under the formula of Financial Management in Vogue. Following, it’s 30pc in the third and fourth quarters. It is allowed that the funds go up to 25pc of the annual budget for salaries and pensions in each quarter of the fiscal year.
Annual budget can go up to 40pc in the next few months”
By looking at the details, it is possible that the annual budget can go up to 40pc in the next few months against the amount set for half of the year. Only 4 elements grabbed the 60pc of disbursements of the first 4 months and that includes; Rs80bn for National Highway Authority, Rs26.78bn were used in Security Enhancements against the set budget of Rs32bn. It was also mostly spent on the China-Pakistan Economic Corridor project.
A major amount of Rs12.8bn was allocated for the development of tribal districts in KPK. Also, Rs30bn was delivered to the water sector against a share of about Rs86bn.
An amount of Rs16bn was allocated to Cabinet Division for 5 development projects in Karachi and on Sustainable Development Goals.
The commission confirmed the payment of Rs114bn to the Federal ministries’ Special Development Program. A share of Rs6.57bn equated to more than Rs7.8bn in the previous year, and a decline of 19pc was provided to the province of Gilgit Baltistan. Funds of Rs11bn were released to the Higher Education Commission in Pakistan. Compared to Rs4.17bn in the past year, Rs5.4bn was allocated to the Ministry of Railway this year.
This is the fund’s policy of the fiscal year 2019-2010. All the ministries are advised to follow the policy for quarter targets. The payments that are obligatory and are related to domestic and international contracts and are above the directed limit will be dealt with differently on case to case basis.
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