| Peshawar: The Khyber Pakhtunkhwa (KP) government has recently presented the budget for the period of four months (July 1 to October 31) with an outlay of PKR 462.426 billion, as reported on June 21. Notably, the KP records a massive increase pay and pension spendings over the past 13 years, leading to a remarkable surge of 541% in the pay bill and an astounding 951% in pension disbursements.
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In line with the new budget, an allocation of PKR 8.667 billion has been designated for the Annual Development Programme, PKR 1.263 billion for Foreign Project Assistance (FPA), and PKR 10.333 billion for the Accelerated Implementation Program of Newly Merged Areas (NMAs).
Further details reveal that the authorized current expenditure for the four-month period amounts to PKR 350.041 billion. Among this, PKR 309.498 billion has been allocated for settled current expenditures, while PKR 40.543 billion has been assigned for current expenditures in the newly merged areas (NMA). On the development front, the authorized development expenditure for the same period totals PKR 112.385 billion, with PKR 92.122 billion earmarked for settled development expenditure and PKR 20.263 billion allocated for development in the NMA.
The presentation highlights a significant surge of PKR 58 billion in the wage bill of the province during the fiscal year 2022-23. This notable increase can be attributed to the mass regularization of employees following the merger of the Federally Administered Tribal Areas (FATA) with KP, along with payments to project employees. To address the financial well-being of its workforce, the government has announced a 35% ADHOC relief allowance for employees in BS 1 to 16 and a 30% allowance for employees in BS 17 and above, alongside a 17.5% increase in pensions for all pensioners.
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In order to maintain fiscal prudence, certain restrictions have been imposed. These include a ban on new schemes and appointments, the purchase of vehicles (excluding ambulances, earth-moving machinery, and fire trucks), participation in seminars and workshops funded by the government, as well as curbing treatment abroad at government expenses.
Importantly, the caretaker government has refrained from taking any loans or overdrafts, while anticipating a deficit of PKR 4 billion in the current fiscal year’s budget. They expect the budget for 2022-23 to conclude at approximately PKR 815 billion. |
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