A tax-free and deficit budget of Rs 17.8 billion for new fiscal year 2005-06 was presented in the Azad Jammu and Kashmir (AJK) legislative assembly on Saturday for approval. Finance Minister Raja Nisar Ahmed Khan unveiled new fiscal year outlay in the House, which met here at legislative assembly building. Speaker Sardar Sayyab Khalid presided over the budget session amid opposition's gentle behaviour during the finance minister's presentation of current and coming fiscal year.
The income estimate for new fiscal year is Rs 9.9 billions against the expenditures of Rs 17.8 billions.
Federal govt will provide Rs 2.7 billions to bridge the gap between income and non-development expenditure. The total size of current ADP is Rs 5100 million including Rs 3909.160 million local component and Rs 1190.840 million foreign assistance.
The Annual Development Programme allocation is 14 per cent higher than previous year, which does not include special grants. 27 per cent of total ADP will go to construction of roads, 20 per cent to local governments and rural development, 16 per cent to foreign aided projects, 10 per cent to power and eight per cent each to physical planning and housing and education and 5 per cent to Health.
Rs 4.13 billion will come from state resources, Rs 0.17 billions from Mangla Dam royalty, Rs 2.8 billion from AJK council, Rs 2.8 billion as share from federal taxes. Finance minister said that Federal government has allocated Rs 5.10 billions for development which also includes Rs 1.19 billion of foreign aid.
MICRO CREDIT FINANCING THROUGH COOPERATIVE BANK: Finance minister said that government was considering starting a micro credit scheme to provide loans to unemployed educated youths on soft terms so that they can set up their businesses to become self reliant.
He said for this purpose, decision has been made to revive dead co-operative bank by offering an attractive concession package to defaulters. Under the package, mark up will be written off on the payment of 25 per cent of original default amount by September 30, 2005 and rest of 75 per cent original amount would have to be deposited within one year in instalments.
Finance minister Raja Nisar Ahmed said that federal ministries and corporations would provide funds for various development projects.
President Pakistan's Special Grant for MLAs Rs 5 million would be provided to every member of legislative assembly (MLA) of AJK from the special development fund provided by President Pakistan General Pervez Musharraf.
ELECTRICITY AND HYDRO POWER GENERATION: The government has set the target to provide electricity to 100 per cent population by improving distribution system and setting up of new grid stations.
LOCAL GOVERNMENTS AND RURAL DEVELOPMENT: Rs 1.26 billion have been allocated for rural development and local bodies' institutions, half of which would be provided by the World Bank.
HEALTH: Rs 0.25 billions would be spent on various projects for the provision of basic health facilities to AJK masses. District Headquarter Hospitals will be set up at Bagh, Pulandri and Bhimber and latest medical facilities would be provided to masses at their doorstep.
PHYSICAL PLANNING AND HOUSING: This sector will be provided Rs 0.38 billions for the improvement in water supplies in major cities and towns, and establishing a sewage system.
FOREST AND AGRICULTURE: Projects have been planned to improve the growth of livestock, agriculture and farming.
INDUSTRIES: A small amount of Rs 50 million has been allocated for industrial development while federal government will provide Rs 500 million for development of minerals.
EDUCATION: Finance Minister claimed that government was giving special attention towards the improvement of educational standards, and funds have been set aside for construction of new schools and colleges and sports stadiums. He assured that cadet college's construction would start soon.
INFORMATION TECHNOLOGY: Rs 50 million have been allocated for development of Information Technology to make the educated people computer literate.
SOCIAL WELFARE: Rs 10 millions have been proposed in social welfare sector for development of women.
TOURISM: An allocation of Rs 22 millions have been proposed for the construction of tourist resorts and guesthouses to provide facilities to tourists.
FOREIGN AID: A largest ever development project of Rs 4.45 billion funded by Asian Development Bank has been launched, under which construction of 200-km long roads and 850-meter long bridges, 56 high, 63 middle and 30 primary educational institutions will be set up during next four years. Hospitals will be expanded, and electricity will also be provided under this project in far-flung areas of the state.
Finance Minister told the House that besides provision of sufficient funds for development by federal government, International Food and Agriculture Development (IFAD) is providing Rs 2.17 billion for community development projects with the participation of local communities.
In his budget speech, he claimed that credit of setting up of cadet college, granting the status of district to Neelum valley, and the payment of Mangla dam royalty to AJK went to Muslim conference and prime minister Sardar Sikandar Hayat Khan. He had raised the issues of masses with federal govt., and set the tradition of politics for brotherhood in AJK.
He said an agreement was reached between Federal govt, Wapda and AJK for the first time after 36 years, under which Kashmiris' right of ownership of Mangla dam was admitted. He said federal govt provision of Rs 152.8 million for the improvement of infrastructure for start of Srinagar-Muzaffarabad bus service on April 7, for the first time last year, was an important achievement of Muslim Conference government.
Finance minister realised that issue of Kashmir was about to reach a conclusion. He termed the resumption of Muzaffarabad-Srinagar bus service as a big event in the Kashmir resistance movement launched in 1989.
"In fact Indian rulers have admitted the disputed nature of Kashmir by allowing Kashmiris to meet each other across cease fire line without passport and visas. Practically, India has recognised the Kashmiris' right to travel freely to either part of divided state. He said peaceful crossing of the line drawn on the heart of state of Jammu and Kashmir (for which hundreds of people were shot) was an important step towards a peaceful political settlement of Kashmir dispute.
While commenting over the budget of fiscal year 2005-06, the AJK-PPP president Sahibzada Muhammad Ishaq Zaffar rejected the new fiscal year budget by claiming that no relief was given to the poor, and allocations for Health and Education sectors were totally neglected. "Govt could not generate even one kilowatt electricity in last four years nor a single road was completed during this time", he said.
He said huge allocation has been made for transport and communications only to bribe kith and kin and favourites. Zaffar said that Muslim Conference government of Sardar Sikandar Hayat Khan did not provide any kind of relief to the suffering masses of AJK.
The Azad Jammu and Kashmir cabinet approved new and current fiscal year budgets before its introduction in the House. The cabinet met here at Prime Minister secretariat presided over by Premier Sardar Sikandar Hayat Khan. At the end of finance minister's budget speech, the speaker adjourned the house till Monday.
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