KP Presents Deficit Budget, Refuses Federal Grant Cuts: Shafiq Jan

PESHAWAR: Khyber Pakhtunkhwa Information Minister Shafiq Jan has said that the provincial government has presented a deficit budget and will not allow any reduction in federal grants allocated to the province.

Addressing a press conference alongside Adviser to the Chief Minister on Finance Muzammil Aslam in Peshawar, Shafiq Jan said that the KP budget had attracted nationwide attention and described it as a historic budget. He stated that the government had initially considered presenting a three-month budget, but legal complications prevented that option.

The minister said that grant-in-aid funds included in the budget have been linked to a meeting with PTI founder Imran Khan. He maintained that the provincial government would not permit any cuts in federal allocations until such a meeting takes place.

Shafiq Jan also criticized restrictions on meetings with the PTI founder, claiming that even family members had been unable to meet him for the past seven months. He demanded that the Chief Minister of Khyber Pakhtunkhwa be allowed to consult with the former prime minister.

Speaking on the occasion, Finance Adviser Muzammil Aslam said that the Chief Minister had urged the federal government to provide an opportunity for consultation with the PTI founder. He rejected claims that all four provinces would contribute funds to the federal government, saying that such assertions were incorrect.

Aslam argued that the National Economic Council was not the appropriate legal forum for such financial decisions and emphasized that the National Finance Commission (NFC) remained the only constitutional mechanism for revenue distribution. He noted that federal tax revenues collected by the Federal Board of Revenue (FBR) must be shared with provinces according to the NFC formula.

He further stated that the federal government could not reduce provincial shares without constitutional amendments. According to Aslam, federal economic policies often place pressure on ordinary citizens, making provincial budgets essential for public relief and development.

The adviser highlighted that the merged districts were facing a budget deficit of Rs121 billion. He said the federal government had released only Rs95 billion out of the Rs180 billion expected for the province.

Aslam noted that education, health, and police services had received the largest budget allocations. He added that the government had refrained from imposing new taxes and had instead simplified several taxation procedures.

The provincial government has allocated Rs125 billion for the Sehat Card program, Rs14.5 billion for police procurement, and Rs6 billion for the Bus Rapid Transit (BRT) system. In addition, Rs20 billion has been earmarked for interest-free loans for talented students seeking higher education abroad.

The adviser also announced plans to provide free public Wi-Fi across Peshawar, with Rs500 million allocated for the initiative. Furthermore, the provincial government has increased the minimum monthly wage to Rs45,000 and urged the private sector to implement the new wage standard.

Aslam said the budget reflects the government’s commitment to public welfare, economic relief, and development despite financial challenges facing the province.