- Mayor cites revenue loss, increased expenses as key reasons for deficit
PESHAWAR: The Peshawar Capital Metropolitan Government is facing a budget deficit and has requested the provincial government to provide Rs4 billion, including a special grant of Rs1.84 billion, to overcome financial difficulties.
In a letter sent by Peshawar Mayor Zubair Ali to the Secretary of the Local Council Board, it was stated that the Capital Metropolitan Government is facing challenges in preparing the annual budget due to the deficit.
The letter attributed the deficit to several factors, including the provincial government’s actions, such as reducing property transfer fees by half and abolishing trade license fees.
Additionally, the transfer of Jinnah Park to the Cantonment Board and the non-payment of the provincial finance commission’s share have reduced the Capital Metropolitan Government’s revenue.
The decline in the construction industry has also impacted revenue, and the government has faced additional expenses due to the termination of Finland’s projects and the closure of the Purda Bagh.
The provincial government has increased pensions and salaries by 25%, and family pensions have been increased by 100%. The Capital Metropolitan Government is also responsible for paying the salaries of non-functional district employees and the pensions of retired sanitation company employees. The government has spent Rs65 million on Muharram arrangements over two years.
To address the budget deficit, the Capital Metropolitan Government has requested the provincial government to release Rs1.84 billion as a special grant and Rs2.15 billion as the provincial finance commission’s share. This will enable the government to complete the budget preparation process.
