PESHAWAR: The Khyber Pakhtunkhwa government expects around Rs22 billion shortfall in the current budget’s revenue receipts as so far during the ongoing fiscal, it has received Rs18 billion less from the centre on account of its share in federal divisible pool along with Rs4 billion shortfall in its own receipts, provincial finance secretary Said Badshah Bukhari said on Thursday.

During a briefing here, the secretary said the federal government had set the revenue collection target for the fiscal year 2014-15 at Rs2,810 billion but it had to revise the target to Rs2,605 billion due to several factors, including slump in international oil prices.

He said as the province received its share from the federal divisible pool at the rate of 9.01 per cent but because of the shortfall on federal level, it received Rs18 billion short of the estimated amount for the current fiscal year, which would end on June 30.

Bukhari said Rs4 billion shortfall was expected in the province’s own receipts.

Finance secretary says province received Rs18bn less from due share in federal divisible pool

He said the federal government had transferred Rs22 billion against Rs29 billion to the province on account of oil and gas royalty so far during the current fiscal.

When asked about the inclusion of any mega project for the provincial capital in the next budget, the secretary said the planning and development department was working on a multibillion rapid bus project.

About utilisation of the current ADP, he claimed that over 90 per cent of the ADP would be spent by end of June.

Bukhari said changes in procedure including hiring of consultants caused delay in the utilisation of ADP previous year.

The finance department arranged pre-budget consultative meeting and invited different stakeholders including business community and office bearers of various government employee associations to seek their input before the upcoming provincial budget which is likely to be presented on June 13.

Finance minister Muzaffar Said chaired the meeting, which was also attended by lawmakers from opposition parties.

Earlier, the finance minister said the government was going to unveil around Rs472 billion budget for financial year 2015-16.

He said volume of the budget had not been finalised and it was being reviewed.

Muzaffar said estimates for the next annual development programme would be around Rs124 billion in addition to around Rs28 billion foreign components.

He said the size of foreign-funded components in the current ADP was Rs35 billion.

The minister said during next fiscal, the government would create 10,000 vacancies in education department and that all-out efforts would be made to resolve all problems of schools and colleges.

He said the provincial government was fully focusing on health sector and that its budget during the next financial year would be 19 percent higher than that of the outgoing year.

The minister said the police’s budget would go up 14 percent, law and justice department’s 13 percent, higher education department’s 13 percent, social welfare department’s 51 percent and local government’s 90 percent.

He said during the next financial year, the government would make efforts for the creation of 2,000 jobs in health sector department and that overall, more than 159,000 employment opportunities would be created for youths in different sectors.

Muzaffar said due to hectic efforts and regular review process, utilisation of development funds in the outgoing year would remain around 90 percent.

“The hiring of consultants to ensure quality of works took time during the last financial year but by the end of the current fiscal, the ratio of fund utilisation will reach 90 percent,” he said.

The minister said the provincial government had a long and united stand on the issue of net hydel profit and that the chief minister himself led efforts for securing profit.

He said the provincial and federal governments had agreed on matters relating to the resolution of the matter.

“In a recent meeting, both parties agreed to make a formal announcement within a week in this regard,” he said.

Muzaffar said no new tax would be imposed in the next budget of the province.

Published in Dawn, June 5th, 2015

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