ISLAMABAD:
The coalition government has accelerated the process of discretionary spending on parliamentarians’ schemes and nearly tripled fund releases to Rs48.3 billion this month in relaxation of the Ministry of Finance’s instructions.
The total release of Rs48.3 billion is Rs19 billion above the ceiling set by the Ministry of Finance for the July-March period of the current fiscal year.
Planning minister authorised the “upfront one-liner” release of nearly Rs19 billion for parliamentarians’ schemes – over and above the prescribed quarterly ceilings, showed documents.
The Ministry of Planning has authorised the release of a total of Rs48.3 billion under the Sustainable Development Goals Achievement Programme (SAP) on the demand of the Cabinet Division that manages these funds, according to the official documents.
Despite repeated attempts for the past two days to take official versions, neither the spokesman for the Ministry of Planning nor the cabinet secretary gave answers to questions.
The money is also given as “single line” budget to the Cabinet Division without allocating to specific projects. However, the Cabinet Division then further allocates funds to specific schemes.
Documents showed that the Ministry of Planning and Development authorised the release of Rs30.9 billion more between January 13 and 17 under SAP. SAP is a term used for parliamentarians’ schemes.
This increased total releases for parliamentarians’ schemes to Rs48.3 billion by January 17. An amount of Rs17.5 billion had been sanctioned till December 2024, according to the documents.
Sources in the Ministry of Planning told The Express Tribune that the release of funds nearly tripled within no time due to competing demands from allied parties for more funds to carry out development activities in their constituencies.
Under the Budget Release Strategy of the Ministry of Finance, a maximum 60% of the total allocated budget can be released during the first three quarters (July-March) of this fiscal year. The 60% funds are equal to Rs29 billion of the annual allocation of Rs50 billion for parliamentarians’ schemes.
The Ministry of Finance has placed these ceilings to control spending and in light of the International Monetary Fund (IMF) programme targets to ensure primary budget surpluses.
Sources said that the planning ministry authorised the release of Rs12.5 billion on January 13, which took total releases to Rs30 billion, slightly above the maximum ceiling.
However, the Cabinet Division sought “additional funds” and Planning Minister Ahsan Iqbal authorised the release of another Rs18.4 billion on January 17, showed the official documents.
“The minister of planning and development has accorded with the request of the Cabinet Division for release of additional funds as upfront one-liner authorisation amounting to Rs18.4 billion for SAP schemes from the third quarter authorisation,” said the documents.
The overall authorisation to the Cabinet Division for the SDGs programme will accumulate to Rs48.4 billion during the current fiscal year, according to the planning ministry’s documents.
The authorisation is being made in line with the simplified release procedure approved by the Executive Committee of the National Economic Council (Ecnec) and the release strategy 2024-25 of the Finance Division. The authorised funds may be released and utilised as per requirement of the budgeted approved projects while remaining within the authorised ceiling.
These release orders have been conveyed to the Cabinet Division secretary. Despite repeated requests, the Cabinet Division secretary did not comment on whether his division asked the planning ministry to release SDGs’ funds upfront in relaxation of the Public Sector Development Programme (PSDP) release strategy.
The planning ministry stated that all codal formalities, pre-requisites and instructions issued from time to time by this ministry and the Finance Division such as the General Financial Rules, Public Finance Management Act 2019, Financial Management and Powers of PAOs Regulations 2021, Assan Assignment Account Procedure 2020 and strategy for the release of funds for development budget 2024-25 may be adhered to strictly before release and sanction of development funds.
Planning ministry spokesman Asim Khan Niazi did not respond to questions regarding the original and revised allocation for SAP in fiscal year 2024-25. He also did not reply to a question about breaching the Ministry of Finance’s office memorandum of July 2024, according to which 60% of the allocated budget can be released during the first three quarters of this fiscal year.
Interestingly, on January 13, the planning ministry communicated to the cabinet secretary about releasing Rs12.5 billion to meet the three quarters’ maximum ceiling of 60%. Four days later, it breached the ceiling.
The planning ministry said that the authorisation was being made in line with the simplified release procedure approved by Ecnec and the release strategy 2024-25 of the Finance Division.
However, the release of Rs18.5 billion is in violation of the Finance Division’s instructions.
For the current fiscal year, the government had proposed Rs1.4 trillion for the federal development budget and to fund the budget, it put an additional burden on the salaried class, homes, children’s milk, packaged milk and enhanced the cost of doing business.
Subsequently, the budget was reduced to Rs1.1 trillion to fill a hole in the budget and fund electricity subsidy by diverting Rs50 billion.
Till December, the actual development spending remained at Rs148 billion, or 13.5% of the annual budget. The planning ministry had authorised the total release of Rs376 billion for all PSDP projects till December.
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