ISLAMABAD: Federal Government has cut funding for 400 new development projects by around 60 percent as it diverts these funding’s for establishment of highways and parliamentarian schemes.
And budget for all federal ministries and division has also been decreased by 10 percent, reported Express Tribune.
Documents available from the PM’s office disclosed funding for over 175 new and 217 ongoing projects was reduced with effect from January 24th.
Due to this decision, around Rs200 billion will be transferred to projects being given precedence by the government, said officials in Ministry of Finance and the planning ministry.
The Ministry of Finance division has also approved a notification cutting expenditures for all federal ministries by 10 percent, issued on 31st January.
50 percent of these cuts will be imposed in third quarter and remainder in final quarter of FY 2017-18.
Due to this decision, cost of around 392 schemes will rise exorbitantly and it would impact 38 percent of Public Sector Development Programme (PSDP) 2017-18 which was approved by Parliament in June 2017.
According to instructions given by the PM’s office, PSDP allocations for unapproved projects aside National Highway Authority (NHA) and special programmes will be decreased by 60 percent immediately.
The document revealed over 220 new projects still needed go-ahead from related departments. Budget allotment for around 217 ongoing schemes has been reduced by 50 percent which didn’t receive any funds from planning ministry and finance ministry till January.
The PM office instructions read “With just five months remaining in the current fiscal year, it would not be possible to utilize allocated funds on 437 projects, consequently a large quantum of public resources that could have been put to better use for public benefit, may be wasted.”
Projects that will be impacted by these funding fall in sectors of education, health, energy, water, transport and infrastructure
