Constituent policy

Ministries/divisions fail to use recovery funds in line with release policy – Latest News – The Nation

ISLAMABAD- Ministries/divisions failed in utilizing development funds as per the release policy and utilized only Rs 400 billion (45.28pc) of Rs 900 billion PSDP allocations over the past first three quarters (July 1 to March 31) of fiscal year 2021-22.
Again, Ministries/Divisions failed in the utilization of development funds mainly due to capacity issue and utilized less than half of development funds in the first nine months of the fiscal year in course, an official source told The Nation.
In line with the budget release strategy for the development budget for the fiscal year 2021-22, funds for the development budget will be released by the Ministry of Planning, Development and Special Initiatives for projects at the 20% level for the 1st quarter, 30% each for the 2nd and 3rd quarters and 20% for the 4th quarter. Out of the total allocations of Rs 900b in PSDP 2021-22, for ministries/divisions, only Rs 407,603b was utilized in the first three quarters (July 1, 2021 to March 31, 2022, the source said.
The source said that expenditure on the rupee component is much lower than the total allocations as only 325.645 billion rupees, or only 40.70% of the total allocation of 800 billion rupees, of the rupee component of the PSDP 2021-22 were used. On the other hand, the utilization of funds allocated under the foreign exchange component (FEC) of the PSDP is about 82%. Of the total Rs 100b FEC Rs 81,958b was used from July 1, 2021 to March 31, 2022.
The source said that even the expenditure against the authorization issued by the Planning Commission is very low, as only 63.7% of the authorization was used in the first nine months. The Planning Commission issued an authorization for Rs 511,138b for the release of funds to the Finance Division, but expenditure of Rs 325,645b incurred during the first three quarters of the current financial year. The utilization of sanctioned funds by relevant ministries/divisions is also low as only 72.8 percent of sanctioned funds were utilized in the first three quarters of the current fiscal year, the documents revealed.