ISLAMABD – The government has released a total of Rs216.2 billion – 41 percent of the Rs525 billion annual allocations – for Public Sector Development Programme (PSDP) during July to January period of Fiscal Year 2015.
For the PSDP, the PML-N government is not releasing funds according to its own set criteria apparently to restrict the budget deficit as agreed with the International Monetary Fund (IMF).
Under the funds releasing mechanism, the government should have been released 50 percent of the annual development budget during July to January of FY2015, sources in Finance Ministry said. Under its declared disbursement policy, the government should have released at least Rs262.5 billion – or 50pc of total allocation (40 percent in first half and 10 percent of January) – by the end of last month. According to the declared disbursement policy, the government releases 20 percent in first two quarters and 30pc in each third and fourth quarters of the fiscal year.
As government is struggling to achieve its revenue collection target, as shortfall reached to Rs 134 billion. Therefore, the government is releasing funds for PSDP at much slower pace to restrict its budget deficit, which remained at 2.3 percent of the GDP during seven months (July to January) of the fiscal year (FY2015).
