KP districts govt spent Rs30 bn out of Rs42 bn budget allocation

A press release issued by the provincial government disclosed that more Rs12 billion of the amount was for developments schemes which are incomplete and still ongoing.

The Pakistan Tehreek Insaf (PTI) led government in Khyber Pakhtunkhwa successfully held local government elections which led to a strong grassroots democratic structure with strength of over 44000 representatives.

Section 53 (a) of the Local Government Act 2013 envisages that development grant for local governments should not be less than 30% of the total development budget of the province.

Therefore, the provincial government had allocated Rs.42 billion for district development programs. However, the district governments could only plan for Rs30 billion rupees, and Rs12 billion allocated to these districts included schemes which were still incomplete.

The provincial government is struggling in realize 2015-16 budget estimates revenue and has to cut down its development budget.

According to the analysis of Center for Governance and Public Accountability (CGPA), Rs15.13 billion has been released under District ADP out of the total Rs. 30 billion allocated budget for districts.

The village and neighborhood councils have received Rs 6.5 billion out of Rs 13.1 billion allocation, tehsils/town councils have received Rs 4.2 billion out of Rs 8.5 billion, while district councils have received Rs4.3 billion out of Rs8.5 billion allocation.

The funds were distributed under provincial finance commission formula which allocates 60% on population, 20% on backwardness and 20% on lag in infrastructure. The provision to districts under ADP scheme No. PS15000373 estimated the budget at Rs. 8.5 billion but only 4.3 billion was received.

According to the PFC, Kohistan which is the most backward district excluding Torghar in Khyber Pahktukhwa secured 1.97% out of total 20% under backwardness followed by Shangla which received 1.26% of the total allocation.

On the other hand Peshawar secured 6.83% out of 60%  due to the population followed by Mardan which secured 4.93% and Swat received 4.25%.  Similarly Peshawar secured 2.1% under lag in infrastructure out of 20% followed by Mardan and Swat securing 1.23% each.

The overall distribution among the three tiers of local government i.e. VCs/NCs, Tehsils and Districts in terms of funds per district remained as; Peshawar Rs1,516 million, Mardan Rs1089 million, Swat Rs964 million, Mansehra Rs795 million, Swabi Rs792 million, Charsadda Rs786 million, DI Khan Rs716 million, Abbottabad Rs710 million, Nowshera Rs684 million, Dir Lower Rs649 million, Kohat Rs598 million, Haripur Rs596 million, Bannu Rs565 million, Dir Upper Rs526 million,  Bunner Rs459 million, Laki Marwat Rs458 million, Shangla Rs455 million, Kohistan Rs440 million, Malakand Rs392 million, karak Rs386 million, Battagram Rs345 million, Chitral Rs339 million, Hangu Rs315 million, Tank Rs291 million and Torghar Rs263 million respectively.

CGPA Programme Manager Malik Masood stated that the district ADP has been reduced owing to the provincial revenue shortfall. However, the revised allocations are yet to be determined for district ADP.

He demanded KP government to realistically estimate revenue estimates ahead of 2016-17 budget as provincial government is facing shortages in its own provincial estimated revenues in 2015-16 budget, beside the shortages in receipts from federal consolidated funds.

He also urged the provincial government not to cut down the district ADP as it will discourage the local governments, the  demanded that the government shall also improve its timely utilization capacity of development funds.