Development spending falls off cliff in July-Dec

The Public Sector Development Programme (PSDP) has flattened to just Rs148 billion in the first half of the current fiscal year against revised allocation of Rs1.1 trillion amid substantial revenue shortfalls and the government’s tight control over disbursements to meet requirements of the International Monetary Fund (IMF). According to half-yearly (July-December 2024) data released by the Ministry of Planning and Development on Wednesday, the total PSDP spending stood at about Rs148bn, accounting for about 10.5pc of the original budgetary allocation of Rs1.4tr. During the same period, the country faced a revenue shortfall of about Rs386bn against the target. The PSDP utilisation is even significantly lower, both in absolute and percentage terms, than in the same period of last year when a caretaker setup was running the government and fiscal control was stricter than elected governments. The data showed PSDP spending in July-December 2023 stood at Rs150bn, accounting for 16pc of Rs940bn annual allocation.