Financial Crunch Grips KP's New Government - A 54 Billion Rupees Challenge

As the new government grapples with the financial intricacies, the quest for billions in funds is underway to initiate essential projects and address the pressing needs of the province.

The recently formed government in Khyber Pakhtunkhwa confronts a dual challenge of maintaining law and order while grappling with substantial financial hurdles.

To efficiently manage crucial affairs, the government requires a budget exceeding 54 billion rupees. Inside sources from the finance department reveal that addressing the province's financial woes is imperative for reinstating the health card system and providing free medicines to hospitals.

Managing the annual grant for the BRT bus service, clearing arrears for free books, and continuing the AIP projects, including health card obligations, textbook board dues, and medical procurement, necessitate more than 54 billion in funds, according to official documents.

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Rehabilitating the health card system poses a significant financial burden, with the government needing 15 billion rupees to settle the current 15 billion rupee arrears. Similarly, the outstanding 7 billion rupees for free books and the potential impact on book printing underscore the financial challenges faced by the government.

To address employee-related concerns in major independent hospitals, an annual grant of Rs. 230 million becomes imperative, adding to the fiscal strain. Furthermore, the government must allocate funds to sustain the cheap flour scheme, representing another formidable challenge.

The breakdown of financial obligations indicates that the new government shoulders 62% of health card funds, 70% of free book dues, 35% of arrears for free medicines, and 7% of AIP project funds. Additionally, a mere 4% of the non-salary budget for MTI Hospitals is covered, leaving a hefty 96% to be managed by the recently formed government.

Faisal Amin Gandapur, brother of the would-be KP Chief Minister Ali Amin Gandapur, acknowledged the challenges, emphasizing their proactive approach to handling provincial affairs, including budgetary considerations.

Caretaker Finance Minister Ahmed Rasool Bangash highlighted that while the new government faces financial hurdles, relief could come if arrears are received from the federation.

As the new government grapples with the financial intricacies, the quest for billions in funds is underway to initiate essential projects and address the pressing needs of the province.