MoF commits Rs47bn non-development budget for GB

ISLAMABAD: The Ministry of Finance (MoF) has committed to grant Rs47 billion to the Gilgit Baltistan (GB) government as opposed to the regional government’s demand of Rs60bn as non-development budget for the next fiscal year (FY22).

The regional government had demanded the allocation for meeting the expenses of administrative affairs, employment, promotion of employees and other non development expenses.

In this regard, Federal Minister for Finance and Revenue, Shaukat Tarin, chaired a virtual meeting with GB Chief Minister (CM), Muhammad Khalid Khursheed, GB Finance Minister Javed Manwa and GB Chief Secretary Asif Daman and other officials of the ministry on Wednesday to discuss budget proposals forwarded by the regional government.

It may be recalled that the federal government had approved Rs32 billion as non-development budget in FY21 for GB against the demand of Rs44.8 billion.

During the meeting, provincial secretary Finance gave a detailed presentation on the financial requirements of GB’s administration during the current and next financial year. Agreeing to cooperate with the regional government for the provision of additional funds during the next financial year, Tarin, however, stressed that the GB government must rationalise its expenditures as the federal government is exercising strict financial discipline.

The Finance Minister approved the requests for the provision of additional subsidy incurred on the purchase of wheat, issuance of NOCs for purchasing vehicles to monitor developmental activities, purchase of school buses, health ambulances, excavators, road making machinery, operational vehicles for education, health works, water and power, emergency services and law enforcing agencies (LEAs). 

According to Javed Manwa, the center and regional government governments were working on a historic development budget of around Rs100 billion, which includes Rs74 billion development fund under the Integrated Development Plan (IDP) and Rs25 billion of Annual Development Plan (ADP).

If approved, the region may be granted around Rs150 billion annual budget for FY22.

According to officials privy to the matter, Shaukat Tarin stated that the government intends to undertake several projects for hydel power generation, enhancing tourism connectivity and imparting vocational training and granting scholarships for the youth under the GB Development Package.