Khyber Pakhtunkhwa (KP) government to bridge 4.63 billion rupees monthly gap to meet tribal districts’ current expenditures.
The provincial government is facing a shortfall of 55.62 billion rupees for the current expenditures of tribal districts. The financial burden of erstwhile FATA (Federally Administered Tribal Areas) has exceeded 15 billion rupees in the current year, and there are concerns that it may reach up to 55 billion rupees in the coming year.
The federal government had allocated 60 billion rupees for the current expenditures of tribal districts for the fiscal year 2022-23, while the actual requirement was 85 billion rupees. The provincial government managed to save 10 billion rupees through various means, but it still had to spend 15 billion rupees from its own share on expenditures in tribal districts. This resulted in the total current expenditures reaching 75 billion rupees.
The current year has seen an increase in salaries and pensions, along with other current expenditure, leading to tribal districts’ expenditures exceeding 121.63 billion rupees. In contrast, the federal government has allocated 66 billion rupees for this purpose. This means that the provincial government is facing a shortfall of 55.63 billion rupees to fulfill the tribal districts’ needs from the federal side.
To meet these expenditures, the KP government will have to bridge the gap of 4.63 billion rupees on a monthly basis. The provincial government plans to utilize its resources and development funds to fulfill the ongoing expenditures of tribal districts.
The shortfall is a major financial burden for the caretaker government. The provincial government is working to bridge the gap by utilizing its resources and development funds. However, it is unclear how long the government will be able to sustain this level of spending. If the federal government does not increase its allocation for tribal districts, the financial crisis in the region is likely to worsen.
