Three provincial govts once again fail to utilise budgets in first half

ISLAMABAD – Apart from Khyber Pakhtunkhawa, other three provincial governments have once again failed to utilise their budgets, which resulted in massive budget surplus and helped the federal government in controlling its fiscal deficit.
The overall expenditures of four provincial governments were recorded at Rs1.755 trillion as compared to the revenues of Rs2.235 trillion, leaving budget surplus of Rs480.77 billion in first half (July to December) of the current fiscal year. According to the data of the ministry of finance, only Khyber Pakhunkhawa government has utilised its budget and other three provinces, Punjab, Sindh and Balochistan, have not utilised their budgets.
As like past, the provincial governments’ surplus budget showed that they had not utilised their budgets on development activities in the provinces. The provinces received major portion of their revenues from the federal government under the National Finance Commission (NFC) award. The provinces helped the centre in controlling its budget deficit by not utilising their revenues in six months. The provinces could use the revenues in development projects, which would help in generating economic activities and employment generation.
Under the 7th NFC award, the federal govt is bound to transfer 57.5 percent of the resources to the four provinces. The provincial govts get shares from the federal government under NFC award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.62pc and Balochistan 9.09 percent. As per NFC formula, the provincial governments had received Rs1.694 trillion from the federal government under the NFC in July-December period of the year 2021-22. Meanwhile, four provinces had collected taxes of only Rs271.2 billion.
PUNJAB
Punjab province had recorded budget surplus of Rs332.7 billion during July-December period of the ongoing fiscal year. The expenditures were registered at Rs697.6 billion as compared to the revenues of Rs1030.3 billion. However, the major chunk of the revenues came from the federal government under divisible pool. The Punjab government had received Rs836.5 billion from the federal government during first half of the current fiscal year. Meanwhile, the province had generated only Rs123.5 billion from its own sources.
SINDH
The province had shown budget surplus of Rs93.8 billion in six months period, as expenditures were recorded at Rs489.6 billion compared to the revenues of Rs583.4 billion. Sindh government received Rs425.11 billion from the federal government during July to December period of the year 2021-22. The Sindh government collected Rs124 billion from its own sources.
KHYBER PAKHTUNKHWA
The KP’s budget is the only province that recorded budget deficit of Rs32 billion. Expenditures of this province were registered at Rs473.8 billion as compared to the revenues of Rs441.8 billion. The KP’s tax collection was recorded at Rs15.8 billion in first half of the last year. The province received Rs277.2 billion from the federal government under NFC during first six months of the current fiscal year.
BALOCHISTAN
This province had also recorded budget surplus of Rs86.25 billion. Balochistan’s expenditures had remained Rs94.097 billion as compared to the revenues of Rs180.344 billion. Balochistan’s tax collection was recorded at Rs7.725 billion.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More