Finance Ministry's Budget Mismanagement Raises Development Concerns

The finance ministry, responsible for managing the country's finances, was given specific tasks to ensure the smooth flow of funds for development projects. These tasks included providing foreign exchange cover when needed, exempting development spending from budget cuts, and avoiding the diversion of funds meant for development purposes.

Despite these instructions, the ministry deviated from its mandate during the year. Approximately Rs20 billion intended for development projects was redirected to non-development activities. Additionally, a significant 20% reduction of Rs184 billion was made in the budget releases for the fourth quarter to maintain the primary budget balance. As a result, the size of the Public Sector Development Programme (PSDP) shrank from Rs950 billion to Rs746 billion.

These actions have raised concerns about the impact on crucial development projects across the country. The reduction in funding could delay or even halt essential infrastructure and social programs, affecting the lives of many citizens.

The finance ministry's decisions regarding budget allocations have direct consequences on the country's development trajectory. It is essential for government authorities to prioritize sustainable and transparent financial management to ensure that funds are utilized effectively for the betterment of society.