Centre spends 44pc less on development.

ISLAMABAD -- The federal development spending fell drastically by 43.68 per cent to Rs151.42 billion in the first half year (July-December) of the current fiscal year from Rs268.87bn over the corresponding period last year to create a space for unbridled current expenditures.

In absolute terms, the expenditures so far account for 20.82pc of the total revised allocation of Rs727bn, drastically short of the development spending target, according to data released by the Ministry of Planning and Development on Monday.

Economists believe that the massive drop in development spending in the current fiscal year would not only slow down the economy but would take a toll on revenue collection as well.

Under the disbursement mechanism announced by the Planning Division, the development funds allocated in the federal budget are released at the rate of 20pc in the first quarter (July-September), followed by 30pc each in the second (October-December) and third quarter (January-March) and remaining 20pc in last quarter (April-June) of a fiscal year.

It is believed that the development expenditure is being curtailed to contain the rising fiscal deficit owing to the increase in current expenditures. The PMLN-led coalition government has appointed over 74 special assistants, who are drawing huge salaries besides perks and...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT