FY21: KP Finance Commission approves Rs261bn for local bodies

Govt earmarks Rs150bn for disbursement of salaries in settled districts, Rs25bn for the same in merged districts

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PESHAWAR: The Khyber Pakhtunkhwa Finance Commission has approved Rs260.97 billion for local bodies, with an additional grant of Rs1.71 billion for tribal districts, for the fiscal year 2020-21. 

According to details, a sum of Rs150 billion has been earmarked for the disbursement of salaries in settled districts, of which Rs144 billion would be for the salaries of subordinate departments while Rs6 billion would be released for the recruitment of new officials and their salaries.

Similarly, Rs17.80 billion has been sanctioned for “other expenses”, which was Rs400 million less than the financial year 2019-20. 

The fund included Rs1 billion as a conditional grant for education, basic health centres and local governments, Rs2 billion for medicines in hospitals, Rs700 for electricity bills, Rs350 million for martyrs’ package, Rs20 million for advertisements, Rs664.3 million for grants to higher secondary schools, Rs138.50 million for admission campaign grants, IT equipment in educational offices, Rs1.76 million for procurement, Rs1 million for furniture, Rs1.5 million for district performance programme, Rs125.8 million for financial reward of teachers and principals for better performance of schools, and Rs320 million for position holder students under “Stori da Pakhtunkhwa programme”. 

The KP government has also sanctioned Rs1 billion grant for financially weak municipal authorities and Rs192 million for the cantonment board. 

A sum of Rs2 billion would be given to village and neighbourhood councils. 

In addition, the District Development Fund of Rs44.60 billion was also approved for the settled districts which would be provided to each district on the basis of population, poverty and infrastructure.

The commission sanctioned Rs25.67 billion for salaries of local government subordinates in the tribal districts, of which Rs22.70 billion has been earmarked for the salaries of existing employees while Rs2.97 billion has been earmarked for new recruits and their salaries.

Local bodies would be given Rs6.4 billion, of which Rs1 billion was conditional education grant while the rest was reserved for electricity bills, supply of medicines to primary health centres, martyrs’ package and financial rewards for teachers.

It also recommended the provision of a one-time operational grant of Rs542.617 million for TMAs of tribal districts, Rs175 million for village and neighbourhood councils and Rs1 billion as development funds for tribal districts.

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