Total expenditures of all provincial governments have registered a healthy growth of 31 percent or Rs 131 billion to Rs 548 billion during the first half of current fiscal year (2011-12) compared with same period of last fiscal year (2010-11).

The massive rise in expenditures and less than expectations revenue collection has shrank the overall surplus of the provincial governments by Rs 80 billion to Rs 20 billion during July-Dec of current fiscal year compared with Rs 100 billion in corresponding period of last fiscal year. Sources in banking sector told Business Recorder that during the first half of current fiscal year, both expenditure side as well as revenues account of provincial governments presented poor performance as overall expenditures of four provinces has rapidly increased, while revenue account posted a slight increase.

Total expenditures (including current and development) of all provincial governments registered a healthy growth of 31 percent against 10 percent rise in revenues resulted in Rs 20 billion surplus during the first half (July-Dec) of current fiscal year. Last year, the provincial surplus stood at Rs 100 billion after the provinces started receiving a greater share of the federal revenue due to the 7th NFC Award.

Sources said as compared to same period of last year, the overall surplus of the provincial governments showed a decline of some Rs 80 billion during first half of fiscal year 2012.

Although increase in expenditures of all provincial governments was expected after the 18th Amendment, however the actual increase exceeds expectations, they added.

Followed by high current expenditures, overall expenditures of all provincial governments have mounted to Rs 548.4 billion by end of first half of current fiscal year compared to Rs 417.3 billion in corresponding period of last fiscal year, depicting an increase of Rs 131 billion.

Of the total increase of Rs 99.8 billion added to current expenditure, which surged to Rs 458.9 billion end ofDec 31, 2011. Sindh alone witnessed an increase of Rs 40.7 billion in current expenditures, followed by Punjab Rs 35.2 billion. In addition, KP’s current expenditures rose by Rs 11.4 billion while Balochistan witnessed an increase of Rs 12.5 billion during the period under review.

In terms of development expenditures,Punjabis well ahead of the three provinces, while Sindh experienced a decline under this head.

Development expenditures mounted by Rs 31.2 billion to Rs 89.4 billion in July-Dec of current fiscal year compared to Rs 58.2 billion in the same period of last fiscal year.

Punjab’s development expenditures stood at Rs 49.1 billion up from Rs 21.8 billion, Sindh Rs 10.6 billion down from Rs 18.4 billion, KP Rs 21.5 billion up from Rs 12.7 billion and Balochistan Rs 8.3 billion increased from Rs 5.4 billion during the first half of current fiscal year.

SOURCE: BUSINESS RECORDER