KP Finance Deptt releases Budget Strategy Paper 2020-21.
PESHAWAR -- The Khyber Pakhtunkhwa Finance Department has published its Annual Budget Strategy Paper (BSP) FY 2020-21 with the assistance of DFID-funded Sub-National Governance Program.
This was a milestone towards transparent and accountable governance.
This year BSP was very comprehensive and includes the socio-economic outlook of KP, budget performance for FY 2019-20, COVID-19 Impact and Government strategy including the adverse impact of COVID-19 on the economy, revenue shortfall and comprehensive plan of emergency spending on COVID-19 and budget strategy for FY 2020-21 -both for settled and newly merged areas.
A detailed analysis of the financial impact of an increase in government size and scale in the recent past was also given.
According to the BSP, budget performance of the KP Government for the year 2019-20 in terms of revenue collections, development spend and economic growth was progressing as a year of economic growth for KP, however, in the wake of the pandemic, the Government has recently downgraded the growth prospects into negative growth territory and the immediate and anticipated contraction in the real economy would also translate into the decline in government revenues.
The shortfall in federal transfer to provinces would further be substantiated by the decrease in the provincial own sourced revenue as well as high emergency spend would further squeeze the fiscal space for public investment in the provinces.
The Finance Department was revising and reconsidering every cost,reducing unnecessary allocation and only prioritizing the services in...
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