Most K-P government departments miss revenue targets
Target of Rs4.64 billion given, but were only Rs3.03 billion generated.
The government is running a Rs1.61 billion deficit,said an official of the finance department. DESIGN: ISSA MALIK
PESHAWAR:
The Khyber-Pakhtunkhwa (K-P) government has missed most of its revenue generation targets for the first six months of the current fiscal year.
“The government is running a Rs1.61 billion deficit,” said an official of the finance department, adding most provincial government departments have missed their targets.
The departments were given a target to generate revenue of around Rs4.64 billion, but were only able to collect Rs3.03 billion. “If the current trend continues, there is a risk of increasing the deficit for the upcoming financial year,” said the official.
Explaining the multiple reasons for the departments failing to achieve their targets, the official said: “The nature of the working environment in a department takes a toll on its efficiency. For instance, some departments have outstanding dues, while others face revenue collection difficulties due to non-payment by customers, especially the water and power department.”
“Not only do common consumers default on payments, many government departments fail to pay their electricity dues,” he added.
Another example he cited was of the transportation department, which fell only Rs2.6 million short of its intended target. “This is because the revenue collection mechanism is more compartmentalised, making the recovery of dues comparatively easier.”
Published in The Express Tribune, April 7th, 2013.
The Khyber-Pakhtunkhwa (K-P) government has missed most of its revenue generation targets for the first six months of the current fiscal year.
“The government is running a Rs1.61 billion deficit,” said an official of the finance department, adding most provincial government departments have missed their targets.
The departments were given a target to generate revenue of around Rs4.64 billion, but were only able to collect Rs3.03 billion. “If the current trend continues, there is a risk of increasing the deficit for the upcoming financial year,” said the official.
Explaining the multiple reasons for the departments failing to achieve their targets, the official said: “The nature of the working environment in a department takes a toll on its efficiency. For instance, some departments have outstanding dues, while others face revenue collection difficulties due to non-payment by customers, especially the water and power department.”
“Not only do common consumers default on payments, many government departments fail to pay their electricity dues,” he added.
Another example he cited was of the transportation department, which fell only Rs2.6 million short of its intended target. “This is because the revenue collection mechanism is more compartmentalised, making the recovery of dues comparatively easier.”
Published in The Express Tribune, April 7th, 2013.