Peshawar (News Desk): The Adviser to the Chief Minister of Khyber Pakhtunkhwa on Finance, Muzammil Aslam, has expressed concerns over the federal government’s tax targets and budget estimates, claiming they are often unrealistic and biased. In a statement issued from his office, Aslam pointed out the absence of economic experts in the federal cabinet who could guide the political leadership on economic matters and offer practical solutions.
Aslam highlighted the continuous misalignment between federal and provincial fiscal goals, noting that the federal government often misleads provinces with inflated tax targets. He mentioned that after the federal government increased salaries, the provinces faced difficulties in balancing their budgets when the Federal Board of Revenue (FBR) failed to meet its tax collection targets by the end of the year.
The Khyber Pakhtunkhwa government, he said, had made a bold decision by setting its tax collection target at 11.3 trillion rupees, compared to the federal target of 12.9 trillion rupees. Aslam claimed that the provincial government’s tax collection estimates have been accurate so far.
Additionally, Aslam discussed the salary increase issue, stating that the provincial government had initially announced a 10% salary and pension hike for government employees. However, after federal employees received higher increases of 20-25%, provincial government workers pressured the KP government for a revision, leading to a 25% increase in their salaries.
In his concluding remarks, Aslam stated that, in light of inflationary pressures, the federal government now regrets its decision to raise salaries by 25%, acknowledging the financial strain it has caused.
