KARACHI: Only 35% of the development budget has been spent in Sindh nine months after the commencement of the present fiscal year. With just three months remaining till the end of the financial year, countless rupees are still lying unused even though the need to utilize the budget had come up nine months earlier when it was allotted.
Rs.520 Billion Used in 3,642 Projects
This current financial year saw the Sindh government spend Rs.520 billion of Sindh’s Development Budget on development-related spending on 3,642 projects. This amount has been spent due to the province’s stated intention to fast-track the process of development in the region. Unfortunately, the utilisation of these amounts has not gone according to plan, and has actually been far below expectations up until now.
Consequences
The sluggishness in the disbursement of the budget funds allocated to Sindh is going to have implications for people whose livelihoods depend on the timely implementation of these projects. The delayed disbursements result in delays in completing these projects, which were supposed to be completed at the time when funds were first allocated for these projects.
Expenditures on Routine Expenditures
Whereas expenditure on development was lacking, the non-development budget of Sindh provided another picture. For nine months, a non-development expenditure of Rs2,211 billion had been made with Rs1,238 billion being spent on it. Out of the total expenditure of Rs2,211 billion, expenditures were made on pension with an allocation of Rs271 billion while Rs236 billion was spent.
The amount spent on roads, transportation, and infrastructure totaled Rs263 billion, constituting one of the busiest sectors when it comes to capital expenditure. Administration spending was estimated at Rs242 billion and included the expenditure incurred on utilities as well as other administrative expenses.
The allocation to office supplies was also another area which required attention. Rs40.52 billion was allocated to this sector, out of which Rs11.57 billion was actually spent within nine months, which casts doubt on the efficiency of the procurement process.
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Sindh Infrastructure Investment Up but Still Insufficient
It was recognised by the authorities that investment in infrastructure had gone up in Sindh relative to previous periods, indicating that there has been some improvement in project implementation capability. Nevertheless, the gains made have still been inadequate in ensuring that development spending in Sindh reaches satisfactory levels.
According to development economics and public finance scholars, underutilization of budgets remains a recurring problem for provincial governments in Pakistan. The reasons why budgets get underutilized usually include tendering process delays, land acquisition problems, bureaucratic approvals, and inadequate project implementation unit capacities.
Pressure Builds for Final Quarter
The final three months of the fiscal year now have more weight than ever on their shoulders. In order to achieve even a reasonably satisfactory utilisation rate, it is clear that Sindh will have to make sure that development budgets are released and put into action at a much faster pace during the final quarter.
The case study of budget allocation for development in Sindh highlights a wider issue plaguing provinces in Pakistan – the disconnect between budgeting aspirations and their practical implementation. Bridging this gap will necessitate not only an accelerated pace of expenditures but also a more intelligent system of management, control, and accountability.
