Budget deficit inevitable, says AJK finance minister

By Tariq Naqash

MUZAFFARABAD, June 20: AJK minister for finance and planning and development Raja Nisar Ahmed Khan has maintained that deficit in the AJK budget for next fiscal year was inevitable due to certain reasons, “unparalleled cuts by the central government in developmental grants” being one of them.

“It’s not that we are spending money on luxuries. As far as the recurring expenditures are concerned, they were bound to scale up following unavoidable raises in salaries, allowances and pensions of government servants,” he said in response to questions at the post budget press conference here on Saturday night.

“Secondly, we have not received due share in a number of revenue resources or else the shortfall would have been much low,” he added.

When asked if the AJK government could come up with complete facts and figures to substantiate a general perception that if given actual share in revenue receipts AJK’s economic dependence on Islamabad would peter out, Mr Khan said: “Our relationship with Pakistan is very sensitive and however logical our demands and however genuine our rights may be, we will never seek them lest it might not give any opportunity to our enemy (India) to exploit it.”

But, he said, it remained a fact that payment of net hydel profit share and GST of Mangla, appropriate share in federal taxes, reimbursement of income generated from JK State property in Pakistan as well as the taxes collected by the AJK Council from the AJK territory etc could greatly mitigate the financial woes of the government in Muzaffarabad.

According to him, since the AJK government does not have representation in the National Finance Commission, it’s the responsibility of the central government to protect its legitimate interests during resource distribution.

He questioned: Is it not ironical that the development grant for AJK government, which has to cater for 3.5 million people, is merely Rs 6.17 billion whereas that of the AJK Council, whose source of income is 20 per cent share of the AJK taxes, is around Rs 7 billion, notwithstanding the fact that developmental work is not its mandate?

The finance minister dismissed the contention of AJK opposition that it was not taken into confidence on budget preparation and said what he had presented before the house were merely proposals and opposition could come up with its suggestions during the debate, commencing from Monday.

“Their indisputable suggestions would definitely be incorporated in the budget before its approval.”

When asked why his budget speech lacked mention of any austerity measures, Mr Khan said Prime Minister Raja Farooq Haider would announce the same in the Legislative Assembly.

Ends