Development spending falls 45pc in July-October

Amid rising interest payments and disruptions caused by super floods, Pakistan’s development expenditure has contracted almost 45 per cent to less than Rs99 billion in the first four months (July-October) of the current fiscal year as the government’s overall expenditures increase. According to data released by the Ministry of Planning and Development, total expenditure in the first four months of FY23 amounted to Rs98.78bn compared to Rs178bn in the same period last year. Total expenditure, thus, stands at just 12.37pc of total PSDP allocation of Rs800bn — drastically short of the target mechanism for development spending. 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.