Federal Development Spending Stalls at 10% of Annual Budget in First Four Months

The federal government used just Rs103.87 billion of its Rs1 trillion annual development allocation during the first four months of fiscal year 2026-27, official documents show, leaving more than 89 percent of the budget unspent. The July-October period saw expenditure of 10.39 percent, according to the figures.

Federal ministries were allocated Rs682.48 billion for development projects but spent Rs74.65 billion. Corporations used Rs29.22 billion of the Rs312.51 billion earmarked for them, while provinces and special areas consumed Rs23.80 billion out of an allocation of Rs233.38 billion.

Major infrastructure departments recorded some of the largest gaps. The National Highway Authority, allocated Rs224.51 billion, spent Rs13.29 billion. The Water Resources Division spent Rs18.72 billion of its Rs103.08 billion allocation, and the Power Division, covering entities such as NTDC and PEPCO, used Rs15.92 billion out of Rs88 billion.

Education spending also lagged. The Higher Education Commission spent Rs4.71 billion of its Rs46 billion allocation, while the Ministry of Federal Education and Professional Training spent Rs6.87 billion of Rs36.31 billion. The Railways Division utilised Rs4.65 billion out of its Rs40.65 billion budget.

The documents indicate that a significant share of funds earmarked for roads, power, water and education remained unspent by the end of October. Slow utilisation in the first third of the fiscal year can delay project timelines and is often watched closely as an indicator of execution capacity across federal departments.