Centre Deducts Development Budget For KP
This will be the second budget after the pandemic situation which outbroke last year in February and took a heavy toll on business activities
PTI-led federal government has slashed the development budget for Khyber Pakhtunkhwa (KP) in the fiscal year 2021-2022 (FY22). Finance Minister Shaukat Tarin unveiled the budget worth over Rs 8 trillion before the lower house of the parliament.
This will be the second budget after the pandemic situation which outbroke last year in February and took a heavy toll on business activities and stymied them.
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According to the documents available with News360, the government will spend 36% more under Public Sector Development Program (PSDP) than last fiscal year.
The documents said Rs 2.102 trillion would be outlaid collectively but the share of KP has been reduced from Rs 274 billion to Rs 248 billion.
In FY21, the provincial government received Rs 274 billion from the federal government for development projects. However, it has been reduced to Rs 248 billion in FY22.
The development budget for Sindh has been increased from Rs 194 billion to Rs 321 billion while Punjab will get Rs 500 billion this year.
The center will also grant Rs 133 billion to Balochistan in FY22. The total revenue target in FY22 will be around Rs 7.9 trillion.
The tax revenue target in the fiscal year will be Rs 5.829 trillion while the non-tax revenue target will be over Rs 2 trillion.
The federal government will collectively dole out Rs 3.4 trillion to the provinces under National Finance Commission (NFC) Award.
The fiscal deficit in FY22 will stay around Rs 4 trillion. The documents said that the subsidies to different sectors would be around Rs 682 billion.
The federal government has earmarked Rs 100 billion to combat the coronavirus situation.
