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Article

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Most analysts still focus on the federal budget not realising that there has been a significant shift in the allocation of fiscal resources towards the provinces. This is what should have happened in the first place. After all, most interactions take place between citizens and the government and almost all basic services are delivered by the provincial governments. The question that needs to be examined is whether or not this shift has proved beneficial for the citizens and if the annual provincial budgets ought to be examined in this light.

These budgets have raised a number of issues that need to be highlighted. First, the combined fiscal deficit of the provincial governments is shown as Rs56 billion. This disconnect between the federal budget’s projections of a combined surplus of Rs289bn and the actual provincial budgets is a matter of serious concern. The consolidated fiscal deficit will rise by Rs345bn and end up at 6.1pc of GDP rather than 4.9pc as reflected in the federal budget.

Publication Source

Dawn

Publication Date

6-21-2014

Pages

1-2

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