KP govt to spend Rs198 billion in four months

PESHAWAR: The Khyber Pakhtunkhwa Finance Department has projected Rs198.5 billion as expenditures for the first quarter (July to October) of the next fiscal year to meet the financial obligations for the interim period.

It has also proposed 10 percent increase in the salaries and pensions of the government employees. The mega foreign-funded Peshawar Bus Rapid Transit (BRT) will also continue to receive funds during the period.

The Finance Department had to take the “rare precautional” measure as the previous government could not manage to approve the annual budget for the next financial year. It forced the Finance Department to take the step for smooth availability of finances to the caretaker government.

The measure will not only enable the caretakers in the province to run day-to-day affairs, but also provide at least two months’ time to the next elected government to prepare its fiscal plan. It will also provide relief to the government employees on the line of employees of federal government and other provinces in the absence of the provincial assembly-approved budget.

The caretaker cabinet will also approve the four-month expenditures as soon as it takes oath after Eidul Fitr. The provincial government has resources for its expenditures till June 30 already approved by the previous provincial assembly for the current financial year.

As authorized under Article 126 of the Constitution, the provincial finance authorities have lined up a schedule of spending for four months (July to October), which will safely cover the interim period, besides providing a leeway to the next government to prepare its budget for the remaining eight months of the next financial year.

The authorised expenditures, as projected by the Finance Department for four months, stand at Rs198.5 billion. However, the current expenditures for the period would come to Rs145.4 billion of which Rs84.8 billion will go to salaries and Rs61.6 billion put forward as non-salaried expenditures.

The Finance Department, apparently on the pattern of federal government employees, has also proposed 10 percent increase in salaries and pensions of the basic pay to the provincial government employees.

The Finance Department in its interim budget proposals has also attempted to ensure continuation of work on the ongoing development projects during the four months by setting aside an estimated Rs53.1 billion for the purpose.

An amount of Rs24.4 billion has been allocated for the provincial development schemes while Rs9.8 billion will go to such schemes in the districts. The projects being carried out under the Foreign Project Assistance (FPA) will get Rs18.9 billion. The district governments are likely to get Rs66.38 billion.