K-P groans under funds stoppage

Caretaker CM Azam Khan orders austerity policy to save money, resources

PESHAWAR:

Due to delay in the release of funds under various federal transfers by the federal government and nonpayment of net hydel profit, the provincial government has been facing severe financial constraints. Currently, the federal government owes billions of rupees to the K-P province which has resulted in an adverse impact on the ongoing development and welfare activities in the province, especially merged areas.

This was revealed in a meeting held here on Wednesday with the Caretaker Chief Minister Muhammad Azam Khan in the chair.

The meeting discussed and reviewed various matters related to current economic condition and financial situation with special focus on the budgeted transfers withheld by the federal government.

Chief Secretary Dr Shehzad Bangash, Additional Chief Secretary Ikramullah, Principal Secretary to Chief Minister Amjad Ali Khan and high officials of finance and planning and development departments attended the meeting.

Briefing about the financial constraints due to non-transfer of the budgeted shares by the federation and other related matters, the meeting was informed that the federal government has allocated a grant of only Rs60 billion for the newly merged districts for fiscal year 2022-23 against a minimum current budget requirement of Rs89.5 billion for salary and non-salary expenditures.

Similarly, Rs50 billion have been allocated for development projects in the merged districts, out of which only Rs5.50 billion have been released during the first six months of the year.

Moreover, the share of K-P fixed in the National Finance Commission Award is not being released, while Rs61.89 billion are also due with the federal government on account of net hydel profit (NHP).

The participants were informed on the occasion that the actual Own Source Revenue of the province has increased more than two-fold in the past three years but it is not enough to meet the total requirements of the province, and the province mostly depends on the federal transfers.

The caretaker chief minister said that the financial matters of the province related to federation would be taken up at federal level, adding that the caretaker setup will make every possible effort to get the due rights and share of the province.

However, he directed the concerned authorities to implement the austerity policy of the government in letter and spirit, adding that the government cannot afford unnecessary and unjustified use of available resources.

It may be mentioned here that a meeting reviewed in depth the overall financial as well as law and order situation on Tuesday too. During the meeting CM announced that the matter of financial crisis as well as law and order situation would be discussed with PM Shehbaz Sharif soon in order to solve it.

Published in The Express Tribune, January 26^th, 2023.