ISLAMABAD: Finance Minister of Khyber Pakhtunkhwa, Taimur Saleem Jhagra has mentioned the provincial authorities could be going through a shortfall of Rs155 billion attributable to unpaid obligations of the federal authorities.

Throughout an interplay with media, KPK Finance Minister Taimur Saleem Jhagra mentioned that Rs155 billion shortfall included Rs2.5 for newly-merged districts present finances, improvement finances shortfall Rs22 billion, NFC share in federal tax assortment Rs22.4 billion, NHP Rs61.2 billion and Rs25.9 billion and final quarter NMDs Rs20.4 billion of 2021-22.

Grants for Quickly displaced individuals (TDPs) have been diminished from Rs. 17 billion to zero, he added.

Moreover, he mentioned that ex-FATA’s finances was diminished after the merger and the federal authorities discontinued the Sehat Sahulat Programme for Newly Merged Districts from June 30, 2022, which is now funded by KP.

Federal Authorities’s Sehat Sahulat Programme catered to round a million households in newly merged districts (MDs) (excluding Khyber and Bajaur districts), he mentioned including that the built-in Sehat Card plus programme consists of an annual premium price of Rs. 3,000 per household and covers 1.5 million households, together with Khyber and Bajaur districts.

The estimated price of built-in Sehat Card Plus for NMDs is Rs. 4.5 billion, the minister mentioned and added that federal authorities reneged on dedication to switch PSDP funding of Rs. 5 billion to Khyber Pakhtunkhwa and indicated that the province ought to foot the invoice for integrating an extra 1.5 million households into its Sehat Card Plus programme

Improvement grant initially diminished from Rs. 54 billion to Rs. 50 billion, then revised to Rs. 55 billion after provincial authorities’s agitation.

Solely Rs5 billion has been launched to date within the present fiscal 12 months.

Khyber Pakhtunkhwa has persistently acquired lower than its due share of federal tax task and 1% battle on terror, as per the seventh NFC award Rs 25.35 billion  in opposition to Rs 26.37 billion and precise switch on account tax task Rs 211.03 billion in opposition to share of Rs 219.40 billion.

Underneath seventh NFC award allotted 14.62% share of provincial divisible pool to Khyber Pakhtunkhwa in addition to 1% grant attributable to battle on terror.

The shortfall in opposition to due share of whole Federal Board of Income (FBR) collections quantities to Rs. 22.43 billion and no quantity on account of internet hydel revenue cost was disbursed to the province because the current coalition authorities throughout eight months on the federal degree.

He mentioned that non-payment of NHP to Khyber Pakhtunkhwa has been creating fiscal issues for the province as its arrears has elevated to Rs 61.216 billion with indexation arrears Rs 21.6 billion, arrears of fiscal 12 months Rs 11.902 billion and common NHP for July-November 2022 Rs 12.218 billion  moreover Rs 16.638 billion for the remaining interval of December-June 2023.

On high of that, the FBR income assortment is rising at 15% to 16% within the present fiscal 12 months in opposition to 30% final 12 months will scale back the provincial share of federal tax revenues by over Rs 65 billion.

He mentioned that the Khyber Pakhtunkhwa authorities has elevated its income by 122 % over the past three years by introducing reforms and eradicating redundancies or

duplication in 20 taxation in addition to 8 non-taxation sub heads.

The provincial finance minister additional mentioned that the burden of pension in KP is constantly rising.

The pension invoice of Khyber Pakhtunkhwa will improve to 300 billion by the 12 months 2027.

It was Rs1 billion in 2003-04 which has now elevated to Rs 108 billion rupees, he added.

He mentioned that the KP authorities has launched new pension reforms to facilitate the 5 thousand staff.

Within the new system of pension, the federal government will contribute 10% and the worker will contribute 12.1% and we hope that modifications in pension guidelines will save 1Rs billion yearly.

The KP finance minister mentioned that the pension invoice of the federation and the provinces has been rising by 25 % yearly and  the pension invoice of the whole nation will improve from Rs 1200 billion to Rs 3000 billion by 2027.

He additionally mentioned that the KP authorities has elevated the early retirement age from 45 to 55 years and we predict that the KP authorities will even save Rs 12 billion yearly.

Taimur Jhagra additional mentioned that I had not written a letter to the IMF on the difficulty of surplus finances however I wrote a letter to the federal authorities.

I’ve no regrets and I stand by my place on the matter of the letter, he added.

Whereas replying to the query, He additionally mentioned that Federal Finance minister Ishaq Dar shouldn’t be giving assembly time for the previous few weeks to debate the monetary points going through the province.