Towards Pro-Poor Budgeting: Analysis of Peshawar and Haripur Districts Budget Allocations and Spending

Abstract

Pro-poor budgeting refers to the budgetary allocations and spending by the government for the sectors that directly benefit the poor. The study aims to explore the pattern of allocation and spending on pro-poor sectors such as education, health, water, sanitation & hygiene (WASH), and social protection in select districts of Khyber Pakhtunkhwa. Data of budgetary allocations and actual spending from Accountant General’s office, Government of Khyber Pakhtunkhwa (KP) demonstrates insufficient budgetary allocation for pro-poor sectors as well as the inability of these departments to spend the allocated funds (under-utilization of funds). Discussion on the budget making process highlighted that the lacunas in budget making are also hampering the process of making sufficient budgetary allocations for pro-poor sectors. Since district government is responsible for the budgeting at district level according to the Local Government Act KP 2013, the findings of the study would be helpful for the district government in terms of budgeting and spending.