Challenges faced in formulation of PSDP 2023-24

Engineering Post Report

Ministry of Planning, Development and Special Initiatives/ Planning Commission faced a number of challenges in the formulation of the Public Sector Development Program (PSDP)  for the financial year 2023-24.

According to the information now available from official sources, major challenges faced during the PSDP formulation included

1) Rs 240 billion  liability  rollover from 2021-22 due to zero  release in 4th quarter

2) Low PSDP  allocation and rising throw-forward

3) Inflationary impact on projects

4) Skewed release strategy of Finance Division

5) Accommodating additional  demands of important  projects over and above IBCs

6) rising burden  of provincial nature  projects on Federal PSDP

7) Growing allocation for Sustainable  Development Goals (SDGs)

8) Big demand for  rupee cover against  foreign exchange /foreign aid component

9) Increasing number of new schemes particularly  of  Departmental Development  Working Party (DDWP) level.

10) Charge of CDL  n PSDP

11) Providing  adequate funding  for emerging needs of post-flood 2022  rehabilitation  and five new initiatives by  the incumbent federal government.

Furthermore, the sources added,  certain projects  faced issues of delay in  transferring  of federally released  funds to provincial executing agencies by Provincial Finance Departments and  non-compliance with Asaan Assignment Procedure regarding  provincial nature schemes and non-provision of funds.