Govt Uses Less Than Half of Development Budget in 9 Months

The government spent less than half of its development budget in the first nine months of the current fiscal year, with overall utilization under the Public Sector Development Programme reaching just 41.5 percent, according to official data.

In contrast, schemes linked to ruling parliamentarians saw nearly 70 percent utilization within only four months.

Data from the Ministry of Planning and Development showed total PSDP spending stood at Rs. 415 billion from July to March against an annual allocation of Rs. 1 trillion. Even after the budget was reduced by Rs. 90 billion to finance fuel subsidies, utilization improved only marginally to 45.6 percent of the revised Rs. 910 billion envelope.

The biggest contrast came from the Sustainable Development Goals Achievement Programme, which covers parliamentarians’ development schemes. Out of a revised allocation of Rs. 63.24 billion, nearly Rs. 44 billion, or around 70 percent, was spent within about four months, making it the fastest moving segment of the development portfolio.

Under the government’s own quarterly release plan, PSDP spending should have reached at least 75 percent of the budget by the end of March. Based on the revised size, utilization should have been around Rs. 682 billion, leaving a shortfall of nearly Rs. 267 billion.

Major infrastructure sectors also showed weak performance. The National Highway Authority spent only 36 percent of its revised allocation, while the power sector used around 50 percent. Spending in housing, health, and information technology remained particularly low, with utilization ranging between 13 percent and 28 percent.