Peshawar: The Khyber Pakhtunkhwa (KP) Finance Department has forecasted that the budgets for FY22 and FY23 will see deficits of Rs72 billion and Rs63 billion respectively.
For FY22, the KP government is expected to earn Rs871.70 billion in revenues. The KP Finance Department estimates the provinces expenditures at Rs 944.80 billion for FY22, leading to a budget deficit of Rs72.29 billion.
Similarly, for FY23, the province is expected to generate Rs952.18 billion in revenues. However, its expenditures for FY23 are expected to increase to Rs1,15.44 billion leading to a budget deficit of Rs63.26 billion for the year.
According to sources in the KP Finance Department the provincial government is expected to borrow another Rs150 billion to cover the budget deficits which will take KP’s total loans to more than Rs400 billion.
Sources in the KP Finance Department further informed that the province is expected to further reduce its annual development programme while the share of local governments is also expected to decrease.
For FY23, the annual development programme is expected to amount to Rs100 billion from KP’s own resources while Rs40 billion is expected to be put aside for local governments.