Financial downturn dents Pindi’s uplift prospects

Due to the severe financial crisis, 18 development and municipal bodies of the Rawalpindi district have been unable to submit budget proposals for the upcoming fiscal year 2023–24, despite the end of the previous fiscal year.

According to sources, this failure to present budget proposals has rendered all expenses by these institutions illegal since July 1. The delayed budget presentations have been a recurring issue for local governments and development organisations in the region.

The affected institutions include Rawalpindi Metropolitan Corporation, Rawalpindi Development Authority, Water and Sanitation Agency (WASA), Parks and Horticulture Authority (PHA), and various municipal committees in the district, among others.

To exacerbate the situation, the Punjab government has only provided a budget for four months, from 1st July to 31st October, and has rejected the project proposals submitted by these organisations.

Consequently, these bodies are left without viable revenue options.

To offset their expenses and generate additional income, the institutions have decided to increase fees for government latrines, birth and death certificates, marriage and divorce certificates, map fees, customer fees, property registration fees, water, board taxes, and taxes on slaughterhouses.

The new fiscal year has commenced, but the budgets for these organisations will now be prepared from July 7 to July 15, with immediate approval expected. The Punjab government has also advised local and development institutions to take responsibility for their expenses instead of relying on provincial grants.

As a result of the financial challenges, these institutions are facing major problems, particularly in paying staff salaries in the next three months after the initial four months covered by the Punjab budget.

Published in The Express Tribune, July 2^nd, 2023.