- Centre allocates Rs57b for merged districts, contrary to the province’s expectations of Rs71b
PESHAWAR: The federal government’s budget for fiscal year 2024-25 has dashed the hopes of the Khyber Pakhtunkhwa (KP) government as it has allocated only Rs57 billion for merged districts, contrary to the province’s expectations of Rs71 billion.
The KP government had earmarked Rs30 billion for development programs and Rs40 billion for accelerated development program in the merged districts, totaling Rs70 billion, which was expected to be funded by the federal government.
However, the federal government’s budget proposal has allocated only Rs57 billion for the merged districts, which is equivalent to the current year’s allocation. The federal government has proposed Rs26 billion for development program and Rs 31 billion for accelerated development program in the merged districts, which is Rs14 billion less than the KP government’s allocated budget.
According to sources in the KP Finance Department, the federal government’s budget proposal has fallen short of the province’s expectations, which will result in a cut in the funds allocated for projects in the merged districts. The provincial government had presented a budget of Rs18.87 trillion for the fiscal year 2024-25, with a deficit of Rs8.5 trillion.
The federal government’s budget proposal has come as a surprise to the KP government, as it was expecting an increase in funding for the merged districts. The KP government had been hoping to utilize the funds to develop the region and bring it at par with the rest of the country.
