The Public Sector Development Programme (PSDP) has officially been reduced by a quarter, from its original allocation of Rs800 billion to merely Rs600 billion, due to budgetary limitations.
The nation’s underfunded infrastructure development will once again be hindered by significant cuts to even the funding allotted by the parliament this year.
The development project was limited in the previous fiscal year (2021–2022) to roughly Rs550 billion against a budget allocation of over Rs900 billion, or about a 40% reduction, as no money was available for spending during the final quarter (April–June) due to political transition.
Despite financial limitations and difficulties brought on by the severe floods of last year, the Ministry of Planning and Development revealed on Sunday that it had authorized the disbursement of Rs129 billion for PSDP projects for the fourth quarter (April-June).
It should be allowed Rs145bn following the required disbursement procedure announced by the Planning Commission. Under the system, 20 percent of the budgetary allotments for development projects were to be released in the first quarter of the fiscal year, 30 percent in each of the second and third quarters, and 20 percent in the fourth.
