Development Projects Suffer After Govt Cuts Public Sector Spending

The downward revision of the public sector development program (PSDP) from Rs. 900 billion to Rs. 480 billion has hampered work on developmental projects. The lack of funds is forcing the Finance Division to surrender Rs. 70 billion from the running projects.

The cut on PSDP has even affected the block allocations of the merged district of Khyber Pakhtunkhwa. It will surrender Rs. 15.8 billion of its total allocation, according to official documents available with ProPakistani.

The original allocation of the rupee component, in the PSDP 2021-22, for the merged KP districts was Rs. 52.730 billion. However, the allocation was revised to Rs. 36.911 billion and now an amount of Rs. 15.81 billion will be surrendered.

As per the documents, the total allocation of the rupee component of the Finance Division in PSDP 2021-22 was Rs. 121.171 billion. However, due to the non-availability of funds, the budget was re-revised to Rs. 50.899 billion. The Finance Division will surrender an amount of Rs. 70.272 billion.

The Higher Education Commission (HEC) will surrender Rs. 16.5 billion of its allocated amount of Rs. 40.450 billion, the document reveals. The original allocation of the rupee component for HEC in FY 2021-22 was Rs. 40 billion, which was re-revised to Rs. 23.642 billion.

The original allocation for National Highway Authority (NHA) was Rs. 103.558.472 billion, which was re-revised to Rs. 65.466 billion. Now, NHA will surrender Rs. 38.092 billion.

The allocation of the rupee component of PSDP for the Power Division was Rs. 29.311 billion, which was re-revised to Rs. 7.690 billion. The Power Division will surrender Rs. 21.80 billion.

For the Railways Division, the allocation was Rs. 26.909 billion, which was re-revised to Rs. 17.830 billion. The Railways Division will surrender Rs. 9.07 billion. Similarly, the PSDP allocation of the rupee component for the Water Resources Division was Rs. 91.713 billion, which was re-revised to Rs. 78.811 billion. The Water Resources Division will surrender Rs. 12.902 billion.

For National Health Services (NHS), the PSDP allocation was Rs. 19.004 billion, which was re-revised to Rs. 10.800 billion. The NHS will surrender an amount of Rs. 8.201 billion.

The allocation of the rupee component of PSDP for the Housing and Works Division is Rs. 24.916 billion, which was re-revised to Rs. 14.327 billion. The Housing and Works Division will surrender Rs. 10.589 billion.

Lastly, the allocation of the rupee component of PSDP for National Food Security and Research was Rs. 11.017 billion, which was re-revised to Rs. 7.425 billion. The National Food Security and Research will surrender Rs. 3.592 billion.



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