The federal finance division has refused to grant funds to Azad Jammu and Kashmir (AJK) government for the election scheduled to be held next month citing legal hindrances, News360 learned via sources.
The AJK government sought a supplementary grant of Rs 7.5 billion for the fiscal year 2021-2022 (FY21). The center had already allocated more than Rs 5.5 billion for the region in FY21.
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The supplementary grant was sought under subsidy, bank equity for AJK, and holding election, the available documents said.
However, the finance division agreed on releasing Rs 1.5 billion under food subsidy after approval from the Economic Coordination Council (ECC). The federal cabinet will give the final approval of the measure, sources told News360.
However, the budget wing refused to release the remaining amount of Rs 6 billion for election and bank equity to the AJK government.
Sources told the finance division is of the view that FY21 would end on June 30 and the funds would lapse as they would not be utilized in the outgoing fiscal year.
This situation could lead to an audit objection for which the federal finance secretary would be held accountable before the public accounts committee (PAC).
Therefore, the finance division refused to immediately release funds to the AJK government for organizing the election.
Further, National Command and Operation Centre (NCOC) has also suggested delaying poll in AJK for two months owing to the coronavirus situation.
The federal government provides funds to AJK and Gilgit Baltistan (GB) governments every fiscal year. In the budget for FY22, the center has allocated around Rs 200 billion collectively for development and non-development expenditures for both autonomous regions.