PESHAWAR: Government officials and employees in Khyber Pakhtunkhwa (KP) have collectively received an astounding Rs102 billion in allowances during the fiscal year 2022-23, according to documents released by the Treasury Department. The allowances have ignited concerns over the province’s fiscal health, prompting calls for necessary steps to be taken.
Topping the list of departments accumulating the most allowances is the Police Department, with an eye-watering sum of Rs26.3 billion. Following closely behind, the Health Department claims the second spot with Rs22.9 billion, while the Higher Education Department lands in third with Rs6.1 billion. The Justice & Law and the Khyber Pakhtunkhwa Assembly also featured among the top five, contributing Rs5.4 billion and Rs1.2 billion, respectively.
A cascading effect of allowances inundates the report, with other departments such as General Administration, Finance, Audit, and Planning & Development Department also joining the ranks. The Police Department leading the chart in the tribal districts as well, accruing Rs. 12.12 billion.
These excess allowances are attributed to a myriad of reasons including an expansion in the number of allowances available, increases in allowance rates, and a lack of measures to curb their growth. This situation underscores a worrying trend, as the Public Administration, Finance Department, and P&D Department also appear on the list of top allowances accumulators, further highlighting the scale of the problem.
The surge in allowance collection has strained the province’s budget, necessitating immediate action to restore fiscal equilibrium. To address this mounting concern, experts emphasize that the government must implement measures aimed at constraining the escalating growth of allowances. Failure to do so may cast a shadow on KP’s fiscal future, potentially hampering its ability to meet other vital financial obligations.
As the provincial authorities grapple with this financial predicament, all eyes remain on the government’s response, in hopes that prudent and effective strategies will be deployed to mitigate the fiscal impact of excess allowances on KP’s economy.
