K-P readies additional four-month budget
A report of finance ministry showed that in the next fiscal year too, the government would not have a primary budget surplus and instead it may register a minimum 0.2% deficit. photo: file
In response to the potential delay in the upcoming general elections, the interim government of Khyber Pakhtunkhwa is actively preparing to introduce a supplementary budget for the fiscal year 2023-24. This budget is intended to encompass an additional four-month period, extending from November to February.
Anticipated to reach approximately Rs500 billion in size, this supplementary budget allocates over Rs100 billion towards the continuation of ongoing development projects. The caretaker government plans to officially present this budget in the month of October.
The necessity for this supplementary budget arises from the fact that the previously presented expenditure budget by the caretaker government is set to exhaust its resources by October 31, 2023. In order to ensure a well-managed transition, the caretaker government is taking measures to introduce another expenditure budget that will cover the period from October to February.
The new budget will assist in maintaining essential services and affairs of the province. However, due to constitutional limitations, the caretaker government can only present a budget for a maximum of four months, necessitating an interim budget.
“Since there is no immediate possibility of general elections and the newly elected government will not be formed until October, the caretaker government has initiated preparations to present another four-month budget,” sources familiar with the matter said.
Furthermore, if the general elections face further delays and a new government is not established by February, a third budget for the quadrennial period from March to June will be presented in February. The elected government will have the authority to make changes to this budget.
Nevertheless, government sources pointed out that the centre owed the province Rs1600 billion for electricity profits and merged districts. The provincial government is currently in contact with the centre to address this matter.
If the funds are disbursed, the province will be able to present the budget for another four months. However, failure to secure the necessary funds could make it challenging for the province to present a viable budget.
The caretaker government had previously presented a budget of Rs462.4 billion for the current fiscal year under Article 126 of the Constitution. The budget covered the four months from July to October and did not introduce any new taxes.
The taxes imposed by the previous Pakistan Tehreek-e-Insaf (PTI) government were maintained unchanged.
Published in The Express Tribune, September 5th, 2023.