Balochistan: An analysis of Public Sector Development Program(PSDP), 2021-22
Mehfooz Ali Khan :
Currently, opposition parties of Balochistan are agitating against the Jam Kamal government for
ignoring in Public Sector Development Plan (PSDP). Historically when the provincial budget is
presented, all stakeholders, including members from Treasury Benches and those from the opposition, only discusses and debate Development Outlay.
Strangely 75% and above consists of the Current Budget(non-development) which nobody even discusses. If we look and analyze financial discipline in the last three years, with particular reference to the utilization of development funds, we don’t find a very encouraging picture(to put it mildly). The BAP party under Jam Kamal was sworn in on August 18, 2018. So, for the first year (2018-19) they inherited a budget of Rs 352 Billion with a deficit of Rs 61 Billion. This included a PSDP of Rs 88.3 Billion. At the end of the Financial year more than Rs. 30 Billion lapsed but the blame was shifted to the Interim government, for flawed PSDP projections.
In 2020, Rs.40 Billion of development funds lapsed
Next year, 2019-20 Jam government presented a budget of Rs 419 Billion, including PSDP of Rs.126 Billion. The budget Deficit was shown as Rs.47.7 Billion. This year again Rs 35 Billion of PSDP were lapsed, with no plausible justification. The budget for the year 2020-21 was Rs.465.528 Billion, showing a Deficit of Rs.87.6 Billion. Provincial PSDP was Rs.106 Billion. This year again Rs.40 Billion of development funds lapsed. The budget for the year 2021-22 has recently been tabled with a total outlay of Rs.584.1 Billion with a development outlay of Rs.237.2 Billion. Like last year it also shows a deficit of Rs.84.6 Billion. How schemes were included and what was the criteria for
selecting schemes in the PSDP remains a guarded secret. In total 40 Departments were
accommodated in the PSDP. Out of these 40 departments, 19 departments have less than 1%
allocation and their cumulative total allocation comes to 6.76%.
“Sahil and Wasasail” ignored in the budget
It means 21 Departments will consume 93.2% and 19 will just notionally represent in PSDP. Entire Balochistan talks about Sahil and wassail(COAST & MINERALS), but both have been completely ignored Mines department has been allocated only 0.79%. This is the only potential sector that can generate economic activities and also absorb growing manpower but it has no priority both with the Federal as well as with the Provincial government. Most shocking is the marginalization of the 47.6% of the female population. The total allocation for Women Development Department is 0.35%. The most disturbing aspect of these years’ budgets is that in total this government lapsed more than Rs.100 Billion in development funds(30+30+40=100). No study was conducted to find out the causes of this perpetual lapse, which has serious financial implications for the resource Constrained provinces like Balochistan.
Abandoning PSDP schemes is another serious issue
Every year government spends 30-40% increased expenditure to complete incomplete schemes. Another serious thing, which a common man does not understand is abandoning PSDP schemes on one pretext or the other. This government excluded more than 200 such schemes last year and indicated that their feasibility would again be rechecked. This is a very strange idea. If those were not feasible, why those were included in the first place and why expenditure was incurred on them? Now if those are being taken out of PSDP, that is a total loss of amount incurred on those schemes.
S. No. Department % of total
Allocation
1 Board of Revenue 0.46%
2 Culture, Tourism and Archives 0.82%
3 Environment 0.11%
4 Excise and Taxation 0.03%
5 Finance 00%
6 Food 0.20%
7 Gwadar development Authority 0.48%
8 Home & Tribal Affairs 0.82%
9 Industries & Commerce 0.56%
10 Information 0.15%
11 Labour & Manpower 0.20%
12 Mines & Minerals 0.79%
13 Minority Affairs 0.38%
14 Population Welfare 0.05%
15 Provincial Disaster Management
Authority
0.60%
16 Provincial Transport Authority 0.07%
17 Religious Affairs 0.18%
18 Social Welfare 0.52%
19 Women Development 0.33%
The author is a former secretary finance Balochistan and served on important government positions
