Deficit budget: WASA seeks increase in water charges

The agency is faces around Rs500m revenue shortfall.

RAWALPINDI: The Water and Sanitation Agency (Wasa) has failed to achieve its revenue target, facing a budgetary deficit of almost Rs500 million in the next fiscal year, discussion with a senior official revealed.

The agency’s estimated revenue for the next fiscal year stood at Rs685 million, plus Rs200 million in grants from the Punjab government, while the expenditures may exceed the income thus bringing the total deficit to over Rs500 million.

According to the official, the Wasa spends much of its income on paying electricity bills and salaries of its employees.

The agency annually pays Rs600 million under the head of electricity bills and Rs500 million under the head of salaries.

The official said that the major reason for the deficit was the ever increasing electricity tariff and the annual increase in salaries of the employees, while water charges collected by the agency remained fixed for the last many years.

The Wasa collects Rs98 every month from houses measuring five marlas under the head of water charges, and Rs49 under sanitation charges. The water charges were jacked up last time in 2009. The official further said that the agency also had to pay in millions to the CDA for purchasing water from Khanpur Dam.

Wasa MD Raja Shaukat Mahmood conceded that the agency was facing deficit and shortfall in revenue.

He, however, said that the agency was trying its best to fill the gap.

Mahmood said that the Punjab government had been asked to allow the agency to increase water charges.

Published in The Express Tribune, May 27^th, 2016.