ISLAMABAD: According to the government’s funds release strategy, only 35% of development funds could not be allocated from July to December, with Rs. 330 billion released for development projects instead of the planned Rs. 350 billion.
Documents reveal that even during the first quarter, 15% of development funds were not fully spent, and allocations were reduced due to flood damages and a decrease in revenue collection.
The documents state that the government has allocated Rs. 175 billion for development projects for the period from October to December. According to the funds release strategy, 15% of funds should have been allocated in the first quarter and 20% in the second, but in total, only 33% of funds were allocated in the first half instead of the targeted 35%.
The Planning Commission has requested a detailed report of development expenditures up to December from all ministries and divisions and issued strict instructions to adhere to the Public Finance Management Act and the funds release strategy.
Sources say that before receiving development funds for the third quarter, it is mandatory to complete expenditure of the first half.
