Khyber Pakhtunkhwa Finance Advisor Muzamil Aslam has said that the province is currently facing a huge financial pressure of Rs 150 billion, due to which the financial difficulties are continuously increasing.
In his statement, the Finance Advisor, while explaining the situation of federal revenues and provincial expenditures, said that there is a possibility of a decrease of Rs 800 to 1000 billion in federal tax revenues in the current fiscal year, which will have a direct impact on the financial capacity of the provinces.
According to Muzamil Aslam, due to a cut of Rs 180 billion in the PSDP (Public Sector Development Program) and a decrease in tax revenue, Khyber Pakhtunkhwa is likely to receive a total of Rs 120 billion less, which may further increase the financial difficulties of the province.
He further said that the province has also incurred various emergency and welfare expenses, including Rs10 billion for flood relief, Rs15 billion for rehabilitation of IDPs, and Rs10 billion for fuel compensation for farmers, motorcycles, and buses.
The Finance Advisor said that as a result of all these factors, the overall financial pressure on Khyber Pakhtunkhwa has reached Rs150 billion, and this trend is still ongoing, due to which the future financial situation may become more complicated.
According to experts, if the current fiscal trends continue, the province may have to face tougher decisions in development and ongoing expenditure.
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