PESHAWAR, Dec 11: The NWFP government is faced with massive budgetary deficit due mainly to non-payment of net hydel profit share for the first five months of the current financial year and shortfall recorded during this period in direct federal transfers, sources told Dawn here on Tuesday.
The non-payment of net hydel profit during the current financial year had put tremendous pressure of the provincial kitty.
The NWFP finance managers had laid a claim to Rs14.328 billion net hydel profit in the budget documents of 2001-02 financial year, depending upon the national Finance Commission’s projections, under the same head.
“The province has yet to open its net hydel profit account as the Water and Power Development Authority has, apparently, adopted a complete silence on the payment issue,” said senior provincial government officers.
The provincial and federal governments’ authorities concerned appeared to be unmoved over the issue.
According to sources, it was two months back when the provincial government had taken up the issue with the authorities concerned at Islamabad to make Wapda start releasing funds under the said head to Peshawar.
“However, the provincial government’s move went unattended,” said the sources, adding “that was the last time (two months back) when the provincial authorities concerned had moved Islamabad over the issue of payment”.
The unannounced moratorium on payment of net hydel profit to the NWFP by Wapda has forced Peshawar to undergo budgetary distortions, leaving its budget estimates for the 2001-02 financial year upside down.
Sources said in line with the past practice - prevalent prior to army took over Wapda - by Dec 15, 2001, NWFP should get Rs2.5 billion on account of net hydel profit as its share for the first five months of the current financial year.
The province should have got this amount on proportionate basis out of the total Rs6 billion capped share amount the provincial finance managers are anticipating to receive this year.
In accordance with the Rs14.328 billion annual share on account of net hydel profit, the budget deficit - only under this one head - appears to be at Rs5.970 billion on proportionate basis.
Shortfall due to non-payment of net profit share by Wapda, said the sources, had squeezed the financial kitty, forcing the provincial government to reshape its budgetary plan.
“This hand-to-mouth situation has apparently caused sharp detractions in the provincial government’s plan viz-a-viz development and non-developmental expenditure,” said the sources.
