ISLAMABAD - The Ministries/Divisions have failed in utilisation of developmental funds as per release policy and utilised only Rs400 billion (45.28pc) of PSDP allocations of Rs 900 billion during the first three quarters (July 1 to March 31) of FY2021-22.

Once again the Ministries/Divisions have failed in utilization of developmental funds mainly due to capacity problem and utilised less than half of developmental funds during first nine months of the current fiscal year, official source told The Nation.

As per the budget release strategy for Development Budget for Financial Year 2021-22, funds for development budget shall be released by Ministry of Planning, Development and Special Initiatives for the projects at the level of 20% for 1st quarter, 30% each for 2nd and 3rd quarters and 20% for 4th quarter. Of the total allocations of Rs 900b in the PSDP 2021-22, for the ministries/divisions, only Rs 407.603b has been utilised during the first three quarters (July 1, 2021 to March 31, 2022, the source said.

The source said that expenditure under rupee component is far less than the total allocations as only Rs 325.645b, which is just 40.70pc of the total allocation of Rs 800b, of the rupee component of the PSDP 2021-22 was utilised. On the other hand, the utilization of funds allocated under Foreign Exchange Component (FEC) of the PSDP is around 82pc. Out of the total Rs 100b FEC Rs 81.958b has been utilized 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 just 63.7pc of the authorization has been utilized during the first nine months. The Planning Commission has issued authorization of Rs 511.138b for the release of funds to the Finance Division, however expenditure of Rs 325.645b incurred during first three quarters of the current fiscal. The utilization against the sanctioned funds by the concerned ministries/division is also low as only 72.8pc of the sanctioned funds have been utilised during the first three quarters of the current fiscal, the documents revealed.