K-P seeks Punjab’s advice on mini-budget
Sources say Ministry of Economic Affairs has requested grants to make external debt repayments, as the allocated budget of Rs510 billion based on the Rs186 value proved insufficient. Photo: file
The Khyber-Pakhtunkhwa (K-P) government has sought legal advice from Punjab regarding the fiscal budget as the one it prepared in June will end in October.
Official sources told The Express Tribune that the four-month time will end on Oct 31 and the caretaker government has to prepare the budget for another four months for which it has contacted the Punjab government, seeking legal advice.
They added that it was very important for the provincial government to present a fresh budget because in the absence of it, the government would not be able to allocate funds for the current expenditures.
“The government and the finance department already finalised the arrangements for the mini-budget. It has also sought direction from the Punjab government which is facing a similar situation due to the delay in polls,” the sources said.
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“The government is interested to know what the Punjab government is doing to deal with the situation arising from the delay in polls in the country,” they said, adding that the new budget was expected to be presented at the end of this or the next month.
“The provincial government has been in constant contact with the federal government too because release of funds from the Centre enables it to handle financial matters efficiently,” they noted.
“The provincial government is faced with a severe financial crisis which is probably the worst in its history. And the situation will improve once the federal government releases the funds,” the sources added.
In May, caretaker K-P Chief Minister Muhammad Azam Khan expressed his unwavering commitment to overcoming the prevailing financial crisis in the province.
He emphasised that the provincial government was making extensive efforts to address the situation effectively.
Chief Minister Azam highlighted that the province was currently facing a significant financial burden, with substantial outstanding dues owed by the federal government through various federal transfers.
These dues amounted to billions of rupees, further complicating the financial challenges faced by the province.
In light of this, the provincial government was actively engaging with the federal authorities to resolve these outstanding financial obligations.
The CM observed that the erstwhile Fata had been merged into K-P but the share of the newly merged districts in the NFC was never ever provided.
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“In order to resolve the financial issues of the province, a number of letters have been sent to the prime minister and federal finance minister,” he shared.
He said that he had requested the political leaders in a joint session the other day for their cooperation to get the legitimate rights of the province, adding that he, along with other political leaders met prime minister during his recent visit to Peshawar and briefed him in detail about the financial constraints of the province.
Azam made it clear that it was the first priority of the caretaker provincial government to steer the province out of the current financial issues, adding that all possible efforts would be made for it.
Published in The Express Tribune, October 22nd, 2023.