Federal Govt Utilises Only 63 Percent of Development Budget in FY 2025-26

The federal government spent 63 percent of its revised development budget in the ongoing fiscal year, with documents confirming Rs530 billion released in 11 months from July through May.

The original Public Sector Development Programme target of Rs 1,000 billion was revised downward to Rs 837 billion, yet spending still fell short, reaching only 53 percent of the original annual allocation.

Members of Parliament collectively spent Rs 44 billion out of Rs 63 billion in development funds allocated to them during the 11-month period under review, documents confirm.

33 federal ministries and divisions spent Rs 390 billion against their combined allocation of Rs 577 billion, with the government approving the release of over Rs 575 billion for these entities.

Public corporations recorded particularly low utilisation, spending Rs 139 billion against a revised target of Rs 260 billion, reflecting a significant shortfall in project execution capacity.

Water sector projects received Rs 70 billion out of an allocated Rs 106.64 billion, while the Defence Division utilised only Rs 4.7 billion of its Rs 9 billion 11-month allocation.

Federal education projects spent Rs 20.90 billion out of Rs 26.60 billion, and the Higher Education Commission (HEC) used Rs 28 billion from a Rs 35 billion development fund allocation.

Provinces and special areas spent Rs 154 billion out of Rs 199 billion allocated to them, while Housing and Works utilised only Rs 2.77 billion of its Rs 13.44 billion development budget.

The Ministry of Interior spent Rs 6.31 billion from Rs 11.51 billion, while health development projects recorded Rs 3.89 billion expenditure against an allocation of Rs 11.63 billion.

The Ministry of Railways performed comparatively better, utilising Rs 15.68 billion out of Rs 18.55 billion, while National Food Security spent only Rs 1 billion of its Rs 2.61 billion allocation.