RCB cuts spending, hikes water charges

Approves revised budget of Rs6.95b for fiscal year 2025-26


Jamil Mirza July 16, 2025 2 min read
RCB cuts spending, hikes water charges

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RAWALPINDI:

The competent authority has approved the Rawalpindi Cantonment Board's budget for the fiscal year 2025-26 with a cut of Rs485.7 million, reducing the original proposal from Rs7.436 billion to a revised estimate of Rs6.951 billion.

The cuts were primarily made in the allocations for miscellaneous expenses and maintenance & repair works.

According to details, the Rawalpindi Cantonment Board had initially passed the Rs7.436 billion budget in a board meeting for the 10-ward densely populated cantonment area and submitted it to the Director of Military Lands and Cantonments, Rawalpindi Region, for final approval.

The approved budget includes: Rs3.208 billion for salaries and pensions (approved without any deductions), Rs1.542 billion for miscellaneous expenses (after a Rs34 million cut), Rs600 million for general works (approved in full), Rs385 million for maintenance and repair (after a Rs59 million cut), For comparison, the authority had imposed Rs800 million in cuts in the previous 2024-25 budget. According to Cantonment Board sources, the board achieved 86% performance against last year's budget targets.

Despite the new budget, residents continue to face serious issues in the cantonment area — particularly in the densely populated back-end localities, which contrast sharply with the well-developed front areas. Problems include broken roads and streets, lack of street lighting, poor sanitation, a faulty sewerage system, encroachments, unregulated commercial activity in residential areas, and widespread illegal construction.

The most pressing concern remains the lack of access to drinking water. Due to the absence of a proper water supply network, many residents are forced to install private borewells at their own expense.

Adding to public frustration, the Cantonment Board has now increased water supply charges and sanitation taxes by 100% to 200% in the post-budget board meeting.

In protest, elected members walked out of the session and announced they would challenge the decision in the Lahore High Court, Rawalpindi Bench.

RMC prioritises uplift projects

Our correspondent

The Rawalpindi Municipal Corporation (RMC) approved an annual budget worth Rs8.80 billion for the fiscal year 2025-26, featuring a surplus balance of Rs442.5 million.

Municipal Corporation Administrator and Rawalpindi Commissioner Engineer Aamir Khattak sanctioned the budget after detailed discussions on the proposals presented by Chief Officer Imran Ali.

According to the official budget figures, the total resources — comprising last year's closing balance, the opening balance for the new fiscal year, and projected revenue collections — stand at Rs8.80 billion.

Of this, Rs2.30 billion has been allocated for non-development expenditures, including salaries and pensions, with a special provision of Rs800 million reserved exclusively for pension payments. The development budget has been allocated at Rs6.04 billion.

Key allocations under the development budget include Rs1.92 billion for ongoing development schemes,

Rs1.90 billion for new annual development programmes (ADP), Rs2 billion earmarked for road carpeting and infrastructure rehabilitation, Rs176.1 million designated for sports and cultural activities.

During the current fiscal year, the Municipal Corporation plans to prioritise the completion of several ongoing and new development schemes. These include carpeting of city roads, construction and repair of streets, upgrades to the drainage and sewerage systems, construction and maintenance of nullahs, installation of streetlights, and establishment of an underground cable network in Raja Bazaar and Commercial Market.

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