KP presents deficit budget, rejects federal grant

Khyber Pakhtunkhwa Information Minister Shafi Jan has said that the province has presented a deficit budget. He said no grant will be given to the federal government.

PESHAWAR: Khyber Pakhtunkhwa Information Minister Shafi Jan has said that the province has presented a deficit budget. He said no grant will be given to the federal government.

He made the remarks during a press conference in Peshawar alongside Adviser to Finance Muzammil Aslam. He said the KP budget is more important and widely awaited than the federal budget and called it a “historic” financial plan.

He said the government initially planned a three-month budget. However, legal complications forced a change in the approach.

Shafi Jan said that grant-in-aid matters are linked to a meeting with PTI founder Imran Khan. He added that no budget cuts will be accepted until this meeting is arranged. He also said that the PTI founder has not been allowed to meet his family for seven months.

He urged authorities to arrange a meeting between the KP Chief Minister and the PTI founder.

Adviser to Finance Muzammil Aslam said the provincial government had asked the federal government to allow consultation with the party leadership. He said discussions on PSDP and other financial issues are ongoing.

He said the National Finance Commission (NFC) is the only legal forum for financial distribution. He added that the National Economic Council is not the correct platform for such matters.

He said the federal government collects Rs5,260 billion through the FBR and then distributes it among provinces. He stressed that provinces’ funds cannot be reduced without constitutional changes.

He said federal policies directly affect the common people. He added that provincial budgets help stabilise the economy and support citizens.

He also pointed out a Rs121 billion deficit in the budget of merged districts. He said only Rs95 billion was released out of Rs180 billion allocated by the federal government.

Muzammil Aslam said most of the budget is spent on salaries. He added that education, health, and police have been given priority.

He said no new taxes were imposed last year and very few changes were made this year. He said reforms were aimed at simplifying the system.

He announced that the minimum wage has been increased to Rs45,000. He said private sector employers are expected to follow this decision.

He also said Rs125 billion has been allocated for the Sehat Card programme. Rs14.5 billion has been set aside for police procurement. Rs6 billion has been allocated for BRT.

He added that Rs20 billion has been reserved for interest-free loans for talented students. He also announced Rs50 crore for public free Wi-Fi in Peshawar.