Centre cuts KP’s budget surplus to Rs86bn, claims Muzammil

PESHAWAR: Adviser to the Chief Minister on Finance and Interprovincial Coordination Muzammil Aslam said on Saturday that the federal government has slashed Khyber Pakhtunkhwa’s surplus budget from Rs169 billion to Rs86 billion.

In a statement, he criticised the federal authorities for reducing the province’s budget surplus despite the Khyber Pakhtunkhwa government’s efforts to maintain financial stability.

He said that despite the federal government withholding development funds for merged districts and cutting allocations for ongoing expenditures, Khyber Pakhtunkhwa managed to generate a surplus of Rs169 billion.

Additionally, Muzammil Aslam stated that the provincial government contributed an extra Rs40 billion to pension and gratuity funds. However, he accused the federal government of misclassifying this amount as expenditure, which he claims has distorted KP’s financial figures.

He further pointed out statistical discrepancies between the federal finance ministry reports and provincial accounts, particularly concerning KP’s institutional reserves. He also referenced to Punjab’s financial standing, alleging that the province has faced severe audit objections amounting to Rs180 billion. The chief minister’s aide urged the federal government to rectify these discrepancies and ensure transparency in financial reporting.