Islamabad, Jan 26: The federal government has significantly increased funding for parliamentarians’ schemes under the Sustainable Development Goals Achievement Program (SAP) this month, despite prior recommendations from the International Monetary Fund (IMF) to curb spending in this category. The government allocated Rs. 48.3 billion for the program, nearly tripling the original budget, which breached the Ministry of Finance’s ceiling by Rs. 19 billion, according to reports from Express Tribune.
In a move that defied previous budgetary constraints, Planning Minister Ahsan Iqbal approved an additional Rs. 18.4 billion on January 17, following an initial release of Rs. 12.5 billion just days earlier. This pushed the total disbursed funds to Rs. 48.3 billion, surpassing the Rs. 29 billion limit set for the first three quarters of the fiscal year 2024-25. The decision to approve the additional funds came after requests from the Cabinet Division and allied political parties, who reportedly pushed for increased development activities in their constituencies. These demands were quickly endorsed by the authorities.
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The surge in funding for parliamentary schemes has raised concerns about its impact on the country’s financial stability. The increased allocation has further complicated the financing requirements for the federal government, especially considering that the federal development budget for FY25 was already reduced by Rs. 300 billion to Rs. 1.1 trillion to offset electricity subsidies and other deficits. The timing of the funding spree, in the face of the IMF’s calls for fiscal restraint, has intensified concerns over the government’s ability to manage its budgetary targets and maintain economic stability.
The decision to expand funding for parliamentarians’ development projects comes at a time when Pakistan is already grappling with serious fiscal challenges, including the need to balance development spending with the implementation of austerity measures. The increase in funding may further strain the country’s finances, especially given the need for greater fiscal discipline and adherence to the IMF’s recommendations to reduce budgetary deficits.