'K-P won’t compromise on NHP arrears'
Jhagra says province did not receive NHP dues since Feb of previous fiscal year
K-P Minister Taimur Jhagra. PHOTO: JHAGRA
PESHAWAR:
The provincial government would not compromise on the arrears of the net hydel profit (NHP), however, it would secure the constitutional rights of the province while keeping in view the financial crisis of the federal government.
Khyber-Pakhtunkhwa (K-P) Finance Minister Taimur Saleem Jhagra said this during a post-budget briefing to media persons on Saturday. The provincial government unveiled its R923 billion annual budget 2020-21 on Friday.
Jhagra said the provincial government is cognizant of the NHP arrears under the AGN Qazi formula. The province receives Rs100 billion during each financial year in gas, net hydel profit and provincial taxes and whenever there is delay in the payments, it creates financial crisis for the province.
K-P received Rs3 billion each month from August to January and since February, they have not received NHP arrears, he added.
The finance minister said the NHP arrears is a longstanding issue between the centre and K-P and no previous government could resolve it. However, the previous provincial government led by Pervez Khattak had increased the arrears form Rs6 billion to Rs20 billion, he added.
It is unfortunate that the provinces except K-P did not give 3 per cent share promised under the NFC award for merged districts.
Health, education remain top priority
Jhagra further said that the provincial government has made a record increase of Rs124 billion for health budget which demonstrated the government’s priority. In addition, a significant amount of Rs24 billion has also been allocated in the budget for tackling the coronavirus.
The minister said that a tax-free budget has been presented in difficult circumstances. He said that this year, the provincial government has allocated Rs318 billion for the development programme which is far more than the development budget of Sindh and almost equal to that of Punjab.
A significant amount of Rs207 billion has been allocated in the budget for education, which is about a quarter of the total budget of the province.
Published in The Express Tribune, June 21st, 2020.
The provincial government would not compromise on the arrears of the net hydel profit (NHP), however, it would secure the constitutional rights of the province while keeping in view the financial crisis of the federal government.
Khyber-Pakhtunkhwa (K-P) Finance Minister Taimur Saleem Jhagra said this during a post-budget briefing to media persons on Saturday. The provincial government unveiled its R923 billion annual budget 2020-21 on Friday.
Jhagra said the provincial government is cognizant of the NHP arrears under the AGN Qazi formula. The province receives Rs100 billion during each financial year in gas, net hydel profit and provincial taxes and whenever there is delay in the payments, it creates financial crisis for the province.
K-P received Rs3 billion each month from August to January and since February, they have not received NHP arrears, he added.
The finance minister said the NHP arrears is a longstanding issue between the centre and K-P and no previous government could resolve it. However, the previous provincial government led by Pervez Khattak had increased the arrears form Rs6 billion to Rs20 billion, he added.
It is unfortunate that the provinces except K-P did not give 3 per cent share promised under the NFC award for merged districts.
Health, education remain top priority
Jhagra further said that the provincial government has made a record increase of Rs124 billion for health budget which demonstrated the government’s priority. In addition, a significant amount of Rs24 billion has also been allocated in the budget for tackling the coronavirus.
The minister said that a tax-free budget has been presented in difficult circumstances. He said that this year, the provincial government has allocated Rs318 billion for the development programme which is far more than the development budget of Sindh and almost equal to that of Punjab.
A significant amount of Rs207 billion has been allocated in the budget for education, which is about a quarter of the total budget of the province.
Published in The Express Tribune, June 21st, 2020.