Punjab uses 45.89pc ADP funds in 9 months

[Naveed Yaseen]

By Jawwad Rizvi
The Punjab government has utilized only 45.80 per cent of the Annual Development Plan (ADP) funds in the first nine months of fiscal year 2008-09.

The provincial government till March 2009 released Rs 112 billion out of Rs 155 allocated for the ADP which is 72.25 per cent of the total amount. However, the provincial government utilized only Rs 71 billion out of Rs 112 billion disbursed to the various development schemes of the government departments. The utilization of disbursed amount is also only 61 per cent only.

On the other hand, the government had issued Rs 40 million to each MPA for uplift schemes in his constituency to show efficient utilization of the ADP allocation and to increase the size of next ADP 2009-10.

The MPA schemes were also included in the ADP. Thus an extra amount of some Rs 14.8 billion would be allocated from the blocked allocations of the ADP to MPAs. Sources in provincial Finance and Planning & Development departments revealed that till December-January the ADP utilization was not more then 30 per cent. However, the utilization of funds had been geared up after half year performance and the releases of funds were also increased. They said major increase in release of funds for development schemes was recorded in April and May when each MPA was allocated Rs 40 million for development schemes of their constituencies.

Earlier, the pace of fund releases was very slow as the departments had not completed their work for getting funds. The funds utilization is not possible in just three months as nine months have already passed, they said. The MPAs, they added, would get funds for development schemes but these schemes could not be completed in this fiscal year 2008-09.

They revealed blocked funds of the ADP were also being utilized for Sasti Roti Scheme, the Food Stamp Scheme and releases to district government. Technically, the Sasti Roti and Food Stamp Schemes are non development schemes but the government had allocated such funds for these schemes in the budget.

Secretary Finance Tariq Pasha said the funds for Sasti Roti and the Food Stamp Schemes were not being released from the ADP allocated blocked amount. The officials of the finance departments ask what amount would be utilized in just three months as the utilization of the ADP funds in nine months was Rs 71 billion. In just three months more then 50 per cent funds could not be utilized. They said Finance Minister Tanvir Ashraf Kaira had been given briefing after resuming charge again that Rs 122 billion were released. Then utilization of Rs 51 billion is not viable in three months even if this figure is taken as final release, they remarked.

Finance Minister Tanvir Ashraf Kaira talking to The News said almost 80 per cent the ADP would be utilized. Historically, not more than 80 per cent of the ADP is utilized, he added.

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