Federal govt to pay Rs 96b to KP as hydel profit...

[desan]

The decisive meeting between Federation and provincial government of Khyber Pakhtunkhwa over the long awaiting issue of finance and electricity sharing finally ended on Monday after mutual understanding with assurance that the federal government will pay Rs96 billion to KP government under head of net hydel profit during the period of three years.

Sources privy of latest development told this scribe that the representatives of the federation and KP government comprising high level team of federal and provincial bureaucracy were associated in negotiable dialogue for last couple of days over the burning conflict of Net Hydel Profit and electricity share for KP from National Grid finally resolved over making assurance by federal government to pay Rs96 billion to KP during the period of three years.

It was also learnt that federal government also expressed its willingness to increase the energy share of KP up to 14%, however no time frame has yet to be finalised about transforming the electricity share 14% to KP from National Grid Station.

A senior official of ministry water and power on condition not to be named said that the issue relating to increase in power share of KP would be finalised after the mutual consultation with Central Power Purchase Agency (CPPA) and other stakeholders dealing with power distribution.

The provincial government of KP alleged that despite producing gas, hydel power and petroleum products, the federal government deprived them of KPs share in federal financing.

The former decision regarding uncapping of Net Hydel Profits which was finalised by the Technical Committee of the federal government in March 2013 and duly notified was yet to be implemented and KP government owed in excess of Rs138 billion.

It was also decided in the meeting that according to the recovery from electricity consumers in KP stations, the provincial government would be empowered to decide the schedule of power load shedding by using its discretionary powers, however the KP government in response would ensure to impede the electricity theft cases in the provincial regions.

Sources further maintained that KP government also assured the federal governments representatives that the provincial police department, security institutions and government machinery would make all necessary steps to overcome the electricity pilferage.

KP government also demanded funds in the name of war on terror going on in region, however federal government has refused to pledged a single penny under this particular head.

The Khyber Pakhtunkhwa government also discussed the issue of claiming Rs 35-40 billion against its unutilized share of prescribed water under Water Apportionment Accord 1991 since the accord came into existence.

However the federation was of the view that the total water indent of KP is 8.87 MAF, out of which KP could utilize not more than 6 MAF, while the remaining water; 2-2.8 MAF went down into the sea. Technically and legally it is not possible to utilize even a drop from KP water indent by other provinces, however there is no method to access and calculate the quantity of water drained into the sea, the official maintained.

Source...

 

[Shahid Abassi]

When you can't use your developement budgets for two running years then what is the use of 96b hydel profit. In last two years you only used 36% of your development budget and rest of money was returned to the federal government. Get the money if you can use it otherwise don't do it to score political points.

 

[desan]

When you can't use your developement budgets for two running years then what is the use of 96b hydel profit. In last two years you only used 36% of your development budget and rest of money was returned to the federal government. Get the money if you can use it otherwise don't do it to score political points.

That budget did not go to waste...

It will be used in the near future after the monster of corruption is subdued which is already almost done.

 

[پرفیکٹ سٹرینجر]

desan

آرام بھی کرلینا تھا۔ اپنی صحت کا خیال رکھیں ۔ زندگی میں تو ویسے ہی تبدیلی آجاتی ہے ۔۔۔۔
شاباش ۔ آج کے لئے کافی ہوگیا۔ دودھ کا گلاس پئیں۔
میں بھی جا رہا ہوں تو پھر ویسے بھی آپ ٹھہرنا نہی بنتا۔۔۔

خدا حافظ

 

[Shahid Abassi]

Desan bhai, any developement budgets which are not used by provinces, goes back to the federal government. The money is used to cut our federal budget deficits and it is never available to the province again. Next year you just get your new development budget. And it is the province itself who makes its budget and decides how much they need for the development, they should have known that they can't use it due to corruption so the money could be used for books are helping the poor in an other way. There is a very big difference between 36% and 100%. I know KPK government is doing wonderful job in some areas but they could have built 4000 schools with the unused money. One would understand problems in the first year but same story in the second year is incompetence.

That budget did not go to waste...

It will be used in the near future after the monster of corruption is subdued which is already almost done.

 

[desan]

Desan bhai, any developement budgets which are not used by provinces, goes back to the federal government. The money is used to cut our federal budget deficits and it is never available to the province again. Next year you just get your new development budget. And it is the province itself who makes its budget and decides how much they need for the development, they should have known that they can't use it due to corruption so the money could be used for books are helping the poor in an other way. There is a very big difference between 36% and 100%. I know KPK government is doing wonderful job in some areas but they could have built 4000 schools with the unused money. One would understand problems in the first year but same story in the second year is incompetence.

That was my understanding...

Please share a source.

 

[Okara]

When you can't use your developement budgets for two running years then what is the use of 96b hydel profit. In last two years you only used 36% of your development budget and rest of money was returned to the federal government. Get the money if you can use it otherwise don't do it to score political points.

Shahid Sahib u must be either doing business or job so it your choice whether to spent your money or save it. So your employer can't stop paying if you are not spending it?

 

[GreenMaple]

This means the dharnas, or threat of dharnas work with Patwari league. First dharna ended with formation of the judicial commission for 2103 elections. The recent threat of dharna by KPK political parties ended up with reimbursement of hydel profits.

No dharna, no solutions. More power to dharnas.

 

[fawad ali]

When you can't use your developement budgets for two running years then what is the use of 96b hydel profit. In last two years you only used 36% of your development budget and rest of money was returned to the federal government. Get the money if you can use it otherwise don't do it to score political points.

What lame argument. If it is your right, it is your right, whether you use it that year or not. If u do not use ur development fund, that money does not go in thin air, it is still with you and you can use it the next year.

 

[Will_Bite]

Desan bhai, any developement budgets which are not used by provinces, goes back to the federal government. The money is used to cut our federal budget deficits and it is never available to the province again. Next year you just get your new development budget. And it is the province itself who makes its budget and decides how much they need for the development, they should have known that they can't use it due to corruption so the money could be used for books are helping the poor in an other way. There is a very big difference between 36% and 100%. I know KPK government is doing wonderful job in some areas but they could have built 4000 schools with the unused money. One would understand problems in the first year but same story in the second year is incompetence.

Sorry but that assessment, commonly thrown around by PPP and PMLN is incorrect.
First of all, lets understand how provinicial budgets work. Most of their expenses are tied to the NFC award which they are meant to receive form the federal govt. That NFC award is not dropped in the provincial bank accounts in a lump sum. That award is a projection figure, dependent on 'potential' revenue generation on part of the federal govt. In most cases, the fed govt does not meet its revenue targets, because of which it is not able to provide funds to provinces for development.

Ever wonder why those 'unused funds' arent simply used to pay off provincial debts?
Even wonder why those unused funds arent used to clear off domestic or foreign debts?

Answer is, that those unused funds are for the most part, non-existent. Why is KPK govt crying for its fair share, when they supposedly have idle funds?

 

[459zaman]

Sardar Mehtab Ahmed Khan

Sardar Mehtab Ahmed Khan

Sardar Mehtab Ahmed Khan ki 30 sal ki Progress Report.(for Pk.45)

PML (N) walon mulk is tarah taraqi karta hai?
koi sharam hoti hai koi haya hoti hai​

 

[MHAMZA]

The CTBT always agree to a lot of things but seldom keep their promises ...lets see when these 95 billion are received by KPK Gov..

 

[Shahid Abassi]

You are totally right and I agree. I just didn't want to go in to details. Ofcourse all income sources for federal and provincial governments are through running inflows in the federal accounts. The federal government recieves the legal document called provincial budget which has a status of a law. All federal disbursments to the provincial governments are made against the provisions of the provincial budgets and are not in lump sum. Running in flows match running out flows. Pakistani governments surely don't meet all their budgettary obligations for federal as well as provincial requirements. On average 6-8 % of the demands are not met at the end of the fiscal year. The cut is mostly in development funds. So my point that the unpaid money is used to meet the deficits, is true but may be not in a true procedural sense.

Now if the total revenue short fall is 6 % but KPK has an unused development fund of about 64 % it surely means either all other units have access to full or near to full budgettary funds or some one else (federal government) can make an overspending. And thats exactly what has happened last year, the federal government had an overspending. And No these unused provision of using funds can not be used to pay provincial debts unless it was specified so in the provincial budget.

To your last line which is a bit funny; Never happened that federal government has such a downfall in revenues that it cuts 64% of a provincial budget (Sindh used 74% of its developments fund, Punjab 88% and Balochistan 82%) . When KPK is crying for Hydel profit related funds, its because those are not bound to budgettary provisions as related to the federal government. They can use them where they want and over as long a period as they wish. And remember unused development funds do not accumulate for to be used in next fiscal year.

Sorry but that assessment, commonly thrown around by PPP and PMLN is incorrect.
First of all, lets understand how provinicial budgets work. Most of their expenses are tied to the NFC award which they are meant to receive form the federal govt. That NFC award is not dropped in the provincial bank accounts in a lump sum. That award is a projection figure, dependent on 'potential' revenue generation on part of the federal govt. In most cases, the fed govt does not meet its revenue targets, because of which it is not able to provide funds to provinces for development.

Ever wonder why those 'unused funds' arent simply used to pay off provincial debts?
Even wonder why those unused funds arent used to clear off domestic or foreign debts?

Answer is, that those unused funds are for the most part, non-existent. Why is KPK govt crying for its fair share, when they supposedly have idle funds?