Inayatullah confirms 20% dept budget slash

PESHAWAR: Facing a shortage of funds, the provincial government decided to cut its development budget for financial year 2016-17 by 20%.

This was said by Minister for Local Government Inayatullah Khan. He was addressing a pre-budget consultation at a hotel in the city on Tuesday. It was organised by Centre for Governance and Public Accountability (CGPA).

“The federal government neither provided the expected funds from the federal consolidated pool nor did it achieve revenue targets,” a CGPA press release quoted the minister as saying.

The provincial government estimated Rs37 billion under the provincial tax and non-tax receipts in 2015-16, but could not fetch a reasonable amount. Similarly, an estimated Rs15 billion from the net hydel development fund never materialised, the press release stated.

However, K-P was able to sign a memorandum of understanding (MoU) with the Centre under which Rs25 billion would be added to the kitty under the arrears head of Net Hydel Profit before the start of the next financial year.

He shared the Annual Development Programme for 2016-17 was cut down to Rs113 billion and funds for each sector, including the district ADP, were brought down to Rs22 billion from earlier estimates of Rs30 billion.

He emphasised the need to devise a policy to effectively and efficiently utilise 70% of the budget.

Published in The Express Tribune, June 1^st, 2016.