Khyber Pakhtunkhwa Finance Minister Muzaffar Said Advocate on Tuesday unveiled a tax-free and balanced budget of Rs 505 billion for the financial year 2016-17 amid an uproar in the KP Assembly. The budget also include a development outlay of Rs 161 billion, a slight re-adjustment in provincial taxes, a ten per cent increase in the salaries and pensions of the government employees. It is also said to be aimed at generating 36232 new jobs in different sectors of the province.
As soon as the provincial minister started his budget speech, the legislators of a joint opposition stood up. They raised slogans against the budget and termed it a 'fake budget'. In his budget speech, the Finance Minister stated that the province is expected to obtain Rs 380,187 million from the federal tax assignments, Rs 293,694 million as one per cent of divisible pool for war on terror, Rs 35289 million as straight transfers, Rs 17199 million as net hydel profits, Rs, 18704 million as arrears of net hydel profit and Rs 15000 million as incentive on surplus cash balance.
The province's own receipts include Rs 49507 million as tax receipts, Rs 18171 million non-tax receipts and Rs 18635 million as commercialisation of government properties. The KP government has decided to allocate Res33 billion to the local governments during the next fiscal, the minister said, adding the province will generate Rs 15billion from its own resources under sales tax on services sector, Rs 40billion under tax and non-tax heads, Rs 18 billion from annual net hydel power income, and Rs 15 billion from net hydel profit arrears, the minister said adding the KP will generate Rs 3.5billion from its own power generation in the coming fiscal.
The Provincial Minister announced a salary package for the government employees under which he announced the merger of 10 percent interim allowance 2013 and 2014 into the basic running pay of the provincial government employees, he also announced a 10 percent increase in the salaries of the government employees.
He announced a 10 per cent increase in the pension of retired employees and a 25 per cent increase in the pension of the employees of more than 85 years age. The rise in salaries, pension and allowance would cost Rs 14.20 billion to the provincial exchequer. He further announced an increase in minimum wage from Rs 13,000 to 14,000 of the labourers, adding that the services of 13200 LHWs are being regularised while there is a proposal on the appointment of 1088 vaccinators at the level of Union Councils. He also announced a three-year extension in the contractual services of 11000 personnel of special police force.
The miscellaneous allowance of the Qasid, Nabi Qasid and Daftari has also been increased from Rs 300 to Rs 450. Similarly, the employees from BPS 1-15 working after the duty hours would be getting a 50 percent rise in the conveyance allowance. The washing and Dress allowances of BPS 1-4 also increased from 100 to 150 rupees. A Rs 2500 M.Phil allowance has also been announced for provincial employees, while the upper limit of additional charge allowance and deputation allowance has been increased from Rs 6000, to 12,000.
The minister also announced a 50 percent rise under the head of qualification pay for CIMA, ACCA, SMC, NDC, NMC, ICWA, ICMA, CA and MCMC. The provincial government has for the first time allocated a Rs 1000 allowance per month for the disabled persons of the province. The minister told the House that two new solar projects would be initiated - in southern district and Chitral - at a cost of Rs 200 million each. These, upon completion, would provide electricity to 3000 households at cheap rates.
He said that Rs 600 million has been allocated for extension in Gomal Zam Dam project and Rs 2 billion for irrigating over 50,000 acres of barren land in southern districts. The Finance Minister said that special packages would be announced in the next fiscal year for labourers, teachers, police and class-IV employees. The honoraria to poets, writers and artists would continue to be paid in the next fiscal as well.
About readjustment in the provincial taxes, the Finance Minister said the government has proposed an upward revision in the taxes including token tax fees, while for the luxury cars the tax ratio is being enhanced from Rs 5000 to Rs 6500. Similarly, the ratio of the capital value tax would be the same; however, its scope would be extended to rural parts of the province as well in the next fiscal, he said.
The mutation fee is being enhanced from 2 percent to 2.5 percent; similarly, a Rs 300 fee has been proposed for non prohibited bore and Rs 1500 for prohibited bore weapons. The rates of electricity duty are also being revised upwardly during 2016-17. The Finance Minister said that 21 percent of the development resources would be utilised on developments schemes, 10.9 percent on health facilities, 10.5 percent on primary and secondary education, nine percent on construction of roads and 5.8 percent on local government institutions in the districts.
The Finance Minister also mentioned the special measures taken for transgender people in KP which included their proper registration and payment of monthly honoraria. He said his government would provide maximum funds for the schemes involving social welfare aspects of the people including education, health and social welfare.
Referring to the development programme 2016-17, the finance minister said that the government would provide maximum funds to the ongoing schemes while the number of new schemes would be kept to the minimum level. Of the total Rs 161 billion ADP, the provincial government's share in the development outlay would be Rs 125bn and Rs 36billion foreign aid and grants.
A total 1516 development projects would be executed including 1199 ongoing and 255 new ones in the next fiscal, he said. The volume of the district ADP 2016-17 has been pitched at Rs 33.90 billion during the next fiscal year. Giving a sector-wise break-up of allocations in the budget, he said that education to get Rs 111.52 billion of which Rs 102. 2 billion has been allocated for primary and secondary education and Rs 9.50 billion for education, showing an increase of 15 percent over the outgoing fiscal.
Similarly, health would get Rs 38.42 billion, showing a 28 percent increase over the corresponding year. Social welfare, special education and women development would get Rs 1.69 billion, showing a 23 percent increase. He said that police would get Rs 32.94 billion, irrigation 3.42 billion, Technical education and manpower training Rs 1.97 billion, Rs 600 million for Sport, Culture and Tourism, Rs 3.80 billion for agriculture, Rs 2 billion for environment and forest, Rs 3.20 billion for communication and works, R.s 40.91 billion for pension, Rs 2.90 billion for subsidy on wheat, Rs 8.8 billion for payment on debt servicing and Rs 11 billion for payment of foreign loans and making advances to the government employees.
The Finance Minister informed the House that Rs 294.22 billion has been allocated for welfare portion of the budget which is 61 per cent of the total budget and Rs 49.78 billion allocated for administrative budget and Rs 161 billion for the development program which is 22 per cent of the ADP.Giving details of the expenditures for the fiscal year, he said that of the total Rs 505 billion, Rs 344 billion has been set aside for current expenditure, showing a 10 percent increase over the outgoing fiscal budget.
Muzaffar Said told the House that under the allocation of Rs 3 billion in health sector, the government would extend the Health Insurance Programme to the whole of the province, providing best healthcare facilities to entire population.
He said the government inherited a very poor education system lacking basic facilities in the government schools; however, the provincial government in the last three years succeeded in overcoming shortcoming, adding that in next two years the missing facilities would be met.
He said that for the first time in the history of Pakistan, a females Cadet College would be set in Mardan; similarly, Chitral and Bunner campuses of Abdul Wali Khan University would get the status of full-fledged universities. A campus of engineering university would be set up in Upper Dir, while a campus of Bannu University would be established in Lakki Marwat.
Similarly, the Institute of Criminology and Forensic Sciences would be established at university of Peshawar at a cost of Rs 20 million, he said, adding Rs one billion would be spent on the welfare of the youth besides the government would set up 100 youth centres for them.
He said the government has proposed Rs 200,000 to 2,000,000 interest-free loans for youth to start small businesses. Under private-public partnership the construction of Swat Expressway costing Rs 34 billion approved which is likely to be completed by December 2017.
A feasibility study of Chakdara - Mingora road has been included in PSDP. The road between the Margalla Hills in Islambad to Changa Galli that would shorten the distance between Islamabad to Khyber Pakhtunkhwa would be completed at a cost of Rs 670 million. Similarly, Rs 1 billion would be spent on improving road infrastructure in Hayatabad and Regi Lalma townships. The Finance Minister Muzaffar Sayed spoke about the western route of the China-Pakistan Economic Corridor.
He said the government has agreed to give the status of motorway to Kohat - Jhud Indus Highways and DI Khan - Peshawar Indus Highways and the projects have been made part of the PSDP. Chashma Right Bank Canal is an important project for the province, he said and added the federal government has agreed to bear 65 per cent expenditure to this effect and the practical work on the project would start this year at a cost of Rs 121 billion. The project would irrigate 286000 acres of barren land in DI Khan and Tank districts.
He said the government wanted to establish 18 more industrial estates of which eight would be part of the CPEC, adding that during the next three years around 2 million people would get employment opportunities. Referring to minorities, he said the government has allocated Rs 90 million for renovation and refurbishing of churches, temples and other religious places of minorities besides provision of textbooks, scholarships and uniforms to their students.
The government would set up a judicial complex in Nowshera, Kohat, Dargai, Shabqadar, Tall, Totali, Tank and Kulachi. He said that Rapid Bus Service project spreading over 23 kilometers would be completed at a cost of Rs 20 billion with the assistance of ADB by December in the provincial metropolis. The Minister said a comprehensive package of Rs 3 is being chalked out to provide pesticides, seeds and fertilisers to farmers, adding that 26,800 metric tons of certified seed of wheat would be provided to farmers across the province to increase wheat production. Besides, he said that Rs 300 million assistance package and solar tube-well would be given to farmers to bring barren land under cultivation while agricultural equipment would be provided on cheap rental rates to poor farmers through extension centres.
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