K-P posts Rs5.4b deficit in first half of FY23

Provincial revenue tops Rs372b while expenditures soar past Rs377b

PESHAWAR:

The Khyber-Pakhtunkhwa government posted fiscal deficit of Rs5.4 billion mainly because of huge expenses during the second quarter of the current fiscal year, 2022-23, according to the statistics released by the federal government on Thursday.

During the first half, July 1-December 31, 2022, the province generated financial resources of Rs372 billion, while the expenditure soared to Rs377 billion. During that period, Rs73 billion was spent on the development projects under the Public Sector Development Programme (PSDP).

According to the statistics, the province received Rs314.12 billion under the National Finance Commission Award. The provincial government also received Rs6.5 billion in development grants and Rs35 billion in current grants.

The province generated Rs41 billion from its own resources, which included the income of Rs20.54b through revenue and Rs20.7 billion in non-revenue. The revenue from general sales tax on services was Rs13 billion.

In the same period, however, the province had to return Rs24 billion in loans repayment, including Rs3 billion to the Centre as mark-up on loans. Rs73 billion was spent under the Public Sector Development Programme (PSDP). The net deficit of the province during that period remained Rs5.4 billion.

In the first quarter, July 1 to September 30, the province received additional financial resources of Rs2.95 billion, which made the total financial resources of the province to Rs152 billion, while the expenditure was Rs149 billion, showing a surplus of Rs3b.

 

Published in The Express Tribune, February 10^th, 2023.