PESHAWAR, June 20: Members of the NWFP Assembly on Tuesday accused the NWFP government of surrendering provincial rights by accepting the arbitration of President Pervez Musharraf on National Finance Commission award, which, they said, had deprived the province of Rs3 billion this year.

Abdul Akbar Khan of the People’s Party Parliamentarians said the provincial budget for 2006-7 was the only one whose outlay was Rs2 billion less than the previous one.

He said the budget showed that the Muttahida Majlis-i-Amal believed in retrogressive change.

He said the government had spent Rs97 billion during the current year but it had projected an estimate of Rs95 billion for the next year in spite of 15 per cent raise in salaries and increasing cost of the under-construction schemes.

Mr Khan said the development budget showed a decrease of five per cent, which was a record in the history of the province.

The PPP leader said the government had not mentioned any scheme in the Annual Development Programme.

The entire budget was based on a formula devised by Gen Musharraf, who had a final say in the NFC award, he said.

Despite huge financial aid, he said, the NWFP government had to spend Rs12 billion on relief and rehabilitation of the people affected by the October 8 earthquake.

He said the world had handed out billions of dollars for the early rehabilitation of quake-hit areas but the provincial government had been asked to sign loan accords with the donors.

He said the entire monetary exercise was being run by the army.

Mr Khan said the government had spent Rs60 billion against the projected figures of Rs51 billion, but it had again projected Rs54 billion for the next year, which was contrary to the ground realities. He said the expenses might reach Rs70 billion owing to the increase in salaries. He asked where the government would fill the shortfall of Rs16 billion from.

The government would pocket Rs6 billion instead of Rs8 billion as net hydroelectric power profit this year, which would leave another shortfall of Rs2 billion, he said.

He said that in the past the NWFP and Balochistan received subvention for their poverty and backwardness but this year Punjab had also received a share from the fund. He said the centre had replaced the subvention with grant-in-aid and included Sindh and Punjab in it.

He said Gen Musharraf had increased the share in sales tax of Sindh from 23.5 per cent to 35 per cent, while he had decreased the NWFP’s share from 13.8 per cent to 9.9 per cent. He said the Centre had replaced the subvention with the grant-in-aid and included Sindh and Punjab into it.

He said Gen Musharraf had given 41.5 per cent share in the resources to the provinces and 58.5 per cent to the centre in his decision on the NFC award.