The Balochistan Budget

The first budget (Rs 71.19 billion for financial year 2008-09) of the new coalition government of Balochistan presented by Finance Minister Asim Kurd Gailu last Saturday, was also the province's first tax-free budget though punctuated by a deficit of Rs 8.80 billion.
Cash starved as Balochistan has always remained, notwithstanding its tremendous richness in huge natural resources, it will be somewhat comforting for the people of the province to learn that Prime Minister Syed Yousuf Raza Gilani has promised to provide a Rs 3 billion special grant from his discretionary fund, as revealed by the Finance Minister in his budget speech. With this grant, as the minister pointed out, the deficit would be slashed to Rs 5.80 billion, which is marked to be filled in from enhancement of the province's own resources.
Total receipts are estimated at Rs 62.38 billion. Of this, Rs 3.47 billion constitute the province's own receipts, Rs 48.05 billion to be obtained from federal transfer, besides capital receipts of Rs 6.22 billion and Rs 4.6 billion from foreign project assistance.
It will thus be noted that as in the current financial year, in the next fiscal too, the development funding will be based on special grants from the federal government, that is, under the compulsion of circumstances which will appear as having remained largely unchanged, impelling the new government all the more to redouble efforts to mobilise more resources from inside the province. During the outgoing fiscal year, the revenue income had exceeded budgetary projections.
Against the original projection of Rs 43.82 billion revenue income, the revised estimate amounted to Rs 46.38 billion. At the same time, revenue expenditure in 2007-08 declined to Rs 39.95 billion from the projection of Rs 41.95 billion, while the development outlay came down to Rs 12.58 billion, against the projection of Rs 13.47 billion.
However, the Finance Minister announced an increase from Rs 16.23 billion to Rs 20.46 billion in the resources passed on to the districts in the financial year 2008-09. Despite resource constraints, Balochistan's coalition government is committed to creating 2,425 jobs during the fiscal 2008-09 and thus help reduce to whatever extent unemployment in the province, and ensure that all vacancies would be filled through the Balochistan Public Service Commission.
It will be worthwhile to point out that, referring to the measures taken for the welfare of the provincial government employees, Kurd announced 20 percent increase in the basic pay and net pensions of government employees, besides the increase in medical and conveyance allowances, in accordance with the measures announced by the federal government for its employees.
Reference, in this regard, may also be made to the Finance Minister's announcement about continuation of financial assistance to the heirs of victims of terrorism who died during their services. As such, full salaries will be paid to the heirs of employees belonging to police, levies and jail departments, who lost their lives while performing their official duties.
He also announced one grade up-gradation to all government employees from BPS-1 to BPS-4, while employees from BPS-16 to BPS-21 will receive an additional amount of Rs 400 per month in their utility allowance, this increase having already been made in the salaries of BPS-15 and below employees.
It will also be noted that considerable emphasis has been laid on reduction in wasteful expenditures in the financial year 2008-09, to ensure maximum possible saving so as to add to resources needed to meet the challenges on the social and economic fronts. Notably, the Finance Minister said the government would impose complete ban on purchase of new vehicles and on participation in seminars in foreign countries.
More to his, ban would remain on officials convening their meetings at hotels. However, as the Finance Minister pointed out, the ban may be relaxed on purchase of new vehicles under special circumstances and permission for attending foreign seminars/training courses may be given in the event of the federal government or foreign agency financing the expenditure on seminars and training courses.
All in all, as Asim Kurd Gailu stated, the prime objective of the present government is to bring Balochistan on a par in terms of economic and social development with the other provinces and to turn the province into an abode of peace, tranquillity and prosperity, the government was all set to tap its natural resources, to provide equal opportunities to all, so as to revolutionise education, health, water, and labour sectors and to train existing human resources in the province, with promotion of education sector as its top-most priority.
From all indications, it will appear to be a well-intentioned budget for the country's most neglected and deprived province despite its tremendous development potential. Now that a whole new thrust of collective effort has been initiated due care needs be taken to ensure against breach of peace and tranquillity in the province.