ISLAMABAD - The cash-starved government is struggling to release adequate funds for the Public Sector Development Programme (PSDP) during the ongoing financial year, as it has only released Rs 38.2 billion during the first two months and ten days period of the current financial year. The independent economists and officials of the Finance Ministry are of the view that government might not release the allocated Rs 290 billion for the PSDP during the current fiscal year due to financial constrains and floods in Sindh province. According to the official figures of Planning Commission of Pakistan, the government has released Rs 38.2 billion for PSDP during the first two month and ten days period (July-September 10) of the current fiscal year 2011-2012. Sources informed TheNation that government was pursuing tight cash release policy due to the financial constraints to keep fiscal deficit in control therefore it was not releasing sufficient funs for the PSDP. The government has fixed Rs 730 billion PSDP for the ongoing financial year 2011-2012 in which federal component is Rs 300 billion and Rs 430 billion is provincial share. The government has allocated Rs 300 billion for the federal PSDP for the current fiscal year wherein Rs 10 billion is earmarked for the Earthquake Rehabilitation and Reconstruction Authority (ERRA) and Rs 290 billion for PSDP. The independent economists believed that government is not in position to release Rs 290 billion for Public Sector Development Programme, especially after floods in Sindh province. They are of the view that government is most likely to slash the PSDP allocated for the ongoing fiscal year just like previous year. It is worth mentioning here that government had slashed the PSDP during the previous financial year by some Rs 100 billion due to the unprecedented floods in the country in July-August 2010. On the other hand official sources informed TheNation that the government might once again slash the PSDP if it failed to get positive response from international community for the help of the flood affectees. Apart from the help of flood affectees, the government also wants to keep fiscal deficit at four per cent of the GDP as announced in the annual budget for the ongoing fiscal year. According to the figures, the break-up of Rs 38.2 billion reveals that government has spent Rs 20.9 billion on the infrastructure, Rs 17 billion on the social sector and Rs 0.293 billion on other sectors during the period of July-September 10. The official documents of the PSDP reveals that government has planned to release Rs 253.5 billion from its own resources while Rs 36. 5 billion would come through foreign loan/foreign exchange component during the year 2011-2012. The break-up of governments allocated Rs 253.3 billion showed that it would spend Rs 126 billion on the infrastructure, Rs 124.4 billion on social sector and Rs 3.2 billion on other sectors during the current financial year 2011-2012.