PESHAWAR: The Khyber Pakhtunkhwa (KP) government has allocated Rs 60.5 billion from the budget of settled districts to support tribal areas over the past three years due to a shortage of federal funds. This was revealed in a letter sent by Muzammil Aslam, advisor to the KP finance minister, to Federal Finance Minister Senator Aurangzeb.
The letter highlights that the provincial government has been forced to use its own resources to address the financial gap in tribal districts, spending Rs 40.6 billion on ongoing expenses and Rs 19.9 billion on development projects. The tribal districts, which were merged into KP, are home to over 6.4 million people, and the lack of adequate funding has led to increasing governance challenges.
Muzammil Aslam detailed that, in addition to federal funds, the KP government has spent Rs 40.6 billion from its own budget on tribal districts. The breakdown of expenditures includes Rs 2.3 billion in the financial year 2021-22, Rs 13.1 billion in 2022-23, and Rs 22.1 billion in 2023-24. An additional Rs 10.4 billion has been spent in the current financial year.
Under the Rapid Development Program, the provincial government allocated an extra Rs 19.9 billion, with the highest amount of Rs 11 billion spent in 2021-22, followed by Rs 8.5 billion in 2023-24, and Rs 2.9 billion in the current fiscal year.
Aslam warned that the lack of funds is severely impacting service delivery in the tribal districts. He expressed concerns that the socio-economic progress achieved since the merger of tribal areas into KP could be reversed if the financial crisis persists. He urged the federal government to ensure the timely release of funds to sustain the development process in these regions.
In his letter, Aslam appealed to Federal Finance Minister Senator Aurangzeb to address the financial shortfall and provide the necessary resources to maintain essential services and development projects in the tribal districts. He emphasized that continued federal support is crucial to prevent further deterioration of governance and to uphold the socio-economic gains made post-merger.
Also read:KP welcomes over 26 million tourists in 2024
