ISLAMABAD : The Azad Jammu and Kashmir government is in severe financial crunch as its budgetary deficit has crossed Rs 14 billion and it has expressed its inability to pay compensation to the affectees of 2014 devastating rains and floods.
According to reports, the AJK government has requested the Federal govt to provide a grant of over Rs 1.15 billion but so far has not received any response.  The Finance Ministry has advised the AJK govt to check its non development expenditure.
Reports said that AJK Secretary Finance in a letter to the federal Ministry informed about financial crisis and sought supplementary grant for payment of compensation. I was informed that the budgetary deficit has crossed Rs 14 billion. It said that during the first quarter of the financial year the difference between income and expenditure was around Rs 6 billion which has now crossed to Rs 14 billion.  It said the government needs urgent financial assistance to meet its obligations.