The KP Government on Wednesday unveiled Rs 603 billion tax free budget carrying development outlay of Rs208 billion for the year 2017-18 with major focus on
elimination of corruption and development of the social sector development besides announcing 10 percent increase in the salaries and pension of the government employees after merger of 2010 adhoc relief.
Provincial Finance Minister Muzafar Said advocate presented the fifth budget of PTI led coalition government in the KP assembly Saturday afternoon with Speaker Asad Qaiser in the Chair. A special meeting of the Khyber Pakthunkhwa Cabinet with Chief Minister Pervez Khatak in chair here Wednesday approved budget proposals for year 2017-18.
The KP government also announced 10 percent increase in salary and pension of the government employees after merger of the 2010 ad-hoc relief. The minimum wages have been enhanced from Rs14000 to Rs.15000. The rise in salaries and pension would burden the provincial kitty with Rs16.50 billion The province is expected to receive Rs247.876b from the Federal Divisible Pool 2017-18, Rs.107 million as one percent share of the province in war against terror from the federal divisible pool and Rs49.806 billion as straight transfers from the federation. The province will get Rs21.774b under head of net hydel profit and its arrears from the federal government and Rs114.535 million
as arrears of the net hydel profits.
The provincial own receipts have been pitched at Rs68.31billion for 2017-18. The current expenditure has been pitched at Rs388billion to meet the provincial expenditure to
be incurred next year, he said. The Finance Minister informed the House that the
provincial government will generate Rs126 billion from its own sources for the development programme whereas Rs 82 billion would be met through foreign donor agencies for feeding
the development programmes.
The Finance Minister said it is a balanced budget as the receipts and expenditures have been pitched at Rs603 billion for the year 2017-18. The province will get 11 percent more in next year from the federal divisible pool. However he told the house to ensure implementation of the schemes under development outlay the province has decided to
obtain Rs10 billion internal loan. The province also expected to generate Rs15 billion from
the hydel development fund for financing the hydel power projects. Similarly Rs82 expected to be received from the foreign project assistance. The finance minister informed that Rs3.63 billion would be generated from the hydel power stations setup by the KP
government in 2017-18 besides the province will obtain Rs45.21 billion from the tax and non tax receipts during next fiscal, which also included Rs12.65 billion from service on the general sales tax. The province will secure Rs24.68 billion from the oil and gas royalty deposits of the southern districts which is 43 percent more than the outgoing fiscal year.
The Finance Minister announced that the government has proposed to exempt government employees from Grade-1 to Grade-5 from house rent deduction while rate of the daily allowance was being increased to 60 percent. The allowance of the Urdali is being increased from Rs12000 to Rs14000. Similarly expenditures incurred on shifting and burial rites of
the dead body were being increased to Rs4800 and Rs15000 respectively.
The finance minister informed the house that Rs8 billion allocated for payment on mark-up of the loans obtained by the province. Rs53 billion have been allocated pension payment
which is 30 more than the outgoin fiscal and Rs2.90 billion set aside for subsidy on wheat.
Rs7 billion earmarked for external and internal debt retirement, house building and motorcycle advances to government employees.
Giving detail of the expenditures for 2017-17, the Finance Minister said that Rs.395 billion have been allocated for current expenditures which are 15 percent more than the outgoing fiscal. Rs.127.90 billion allocated for education including Rs115.92 billion for the primary and secondary education sector and Rs11.92 billion for higher education showing 18 percent hike over the current fiscal. Similarly, Rs49.27 billion allocated for health sector
reflecting 31 percent increase over the current year. Social Welfare, special education and women development sector to receive Rs1.85 billion showing seven percent increase in the
next fiscal year.
The police department budget enhanced by 21 percent as Rs3973 billion allocated for the department of police. Irrigation sector will get Rs3.76 billion showing a ten percent rise in
2017-18. Technical Education and Manpower Training will get Rs2.25 billion in next fiscal showing 14 percent hike. The government has proposed certain slight readjustment
of the provincial taxes to generate revenue for meeting the current development expenditure. Referring to adjustment in the provincial taxes, he informed that the ratio of
property tax, professional tax and motor vehicles tax was being increased whereas it was also proposed to increase annual tax on tailors from Rs2000 to Rs10,000 per year. He informed the house the KP Government was engaged in obtaining Rs50b from Asian Development Bank for construction of its much trumpeted Peshawar Rapid Bus Project.
He said the province is likely to receive Rs39.17b from Federal government as share as war against terror.
Similarly, the province is likely to obtain Rs20.78 bln as annual profit under net hydel power profit whereas the province own receipts stood it Rs45 billion. The finance minister said that the government would complete mega Swat Motorway Project from its own sources in the next fiscal year.
About the development outlay he said that the ADP 2017-18 comprises 1631 schemes including 1182 ongoing and 449 new schemes would be executed in 2017-18. As many as Rs 95 billion would be spent on Provincial Development Schemes whereas Rs30 billion allocated for district development programme. The Minister said Rs14.28 bln allocated for primary and secondary education and 410 new primary schools would be constructed during next fiscal year. As many as Rs 6.25 bln allocated for 63 schemes of higher education department, Rs12.23 bln for 101 schemes of health department, Rs460 mln for 33 social welfare department schemes, Rs14 bln for construction of highways and
roads, Rs1.64 bln for 27 schemes of industry department, Rs2 bln for 38 schemes of environment department, Rs2.42 bln for 59 schemes of home department and its attached bodies, Rs4.5 bln for schemes of LG department and Rs2 billion for 30 schemes for relief and rehabilitation.
As many as 30 new schemes has been included in the next budget for agriculture department, 12 for food department, 53 for sports, culture and tourism department, 19 religious affairs, 54 for energy dept, 19 for IT and 16 for Mineral Department.
The Seht Insaf Card scheme would continue in next fiscal year as well and solarization of 4000 mosques in the province also included. The KP Govt would also provide Rs30000 monthly stipends to poets, writers and artists of the province. Health insurance schemes
for government employees are likely to be announced in the budget as its volume was being enhanced from Rs1.8 mln to Rs2.4 mln. Likewise, 10 post graduate colleges would be established in next fiscal besides completion of Peshawar zoo and Arbab
Niaz Cricket stadium.
He informed the House that as many as 4000 mosques would be powered by solar energy. He informed the House that health insurance scheme of government employees would be part of the new year program. Similarly, construction of bomb proof boundary walls
would be constructed around the police stations. Rs1 mln has been allocated for 84 CPEC related schemes in the province. Rs4 billion has been allocated for 35 projects of the
local government departments and Rs13 million allocated for construction and widening of roads and Rs1 bln earmarked for 24 industrial projects in the budget.
The KP Government has allocated Rs65.7billion for health sector in the budget 2017-18 showing a 20 percent increase over outgoing fiscal 2016-17.He said the total volume of health sector was 11pc of total budget volume of Rs603 billion for the year 2017-18.
He said as many as 394 posts were created in the current fiscal year. As many as 1149 posts were created at province and 2793 at district level in outgoing fiscal.Likewise, 1140 posts were proposed for creation in 2017-18 and 674 posts proposed for creation at province and 466 in districts in 2017-18. A sum of Rs13.780 billion has been estimated for 2017-18 to be transferred to district health offices including medical teaching institutions (MTIs) for smooth health delivery system.
Grant in aid to be provided to health institutions across the province including Rs963 million for Ayub Medical College, Rs1594m for Ayub Teaching Hospital Abbottabad, Rs248 million for DHQ hospital Bannu, Rs144m for women and children hospital Bannu,
Rs587m for Khalifa Gulnawaz teaching hospital Bannu, Rs278m for Bannu medical college, Rs232m for Gomal Medical College DI Khan, Rs313m for Mufti Mehmood Memoral Hospital DI Khan, Rs 628m for DHQ Hospital DI Khan and Rs772million for Mardan Medical
The Finance Minister said the scope of emergency services RESCU 1122 and Urban Services was being extended to the whole province from next fiscal year. He informed that 15000 to 20000 new recruitments would be made including 14000 teachers to fill vacant posts of teaching cadres.The Minister further told that the government would continue to provide better facilities to public sector schools while schools were also being shifted to solar energy system.
To provide better facilities in health institutions, Rs14 billion would be spent on purchasing state of the art medical equipment. Finance Minister, Muzaffar Said Adovcate told the
provincial assembly that Rs. 208 billion ADP is 34 percent of
total budget outlay of Rs. 603 billion. The ADP for upcoming fiscal year is also 29 percent more than the amount reserved for the current year development plan, he added. No new tax has been announced in the new budget while some changes have been made in the existing taxes, he continued. He said 82 percent of the development plan comprises foreign
aid. The ADP consists of 1632 developmental schemes out of which 1182 are ongoing and 450 are new schemes.The Minister mentioned that most of the development fund is reserved for ongoing schemes so that these can be completed in stipulated period of time.
KP Finance Minister also thanked foreign donors including Britain, Japan, EU, America, Germany, Switzerland, Australia and international organizations including United Nations, World Bank, USID and Asian Development Bank for making significant contribution in development of the province. An amount of Rs. 20.32 billion reserved for Education sector both primary, secondary and Higher education.
Giving break-up of the total figure, he said Rs14 billion is earmarked for primary and secondary education while Rs. 6.32 for Higher Education. An amount of Rs. 13. 73 billion has been reserved for 349 schemes of communication sector out of which 305 are ongoing and 44 are new. For 305 ongoing schemes an amount of Rs. 12.94 billion is reserved and Rs. 790 million for 44 new schemes of communication sector. For Housing sector Rs. 540 million has been reserved for 16 schemes out of which seven are ongoing and nine new schemes.
The KP government has reserved an amount of Rs. 6.16 billion for Rural development in the Annual Development Plan.For Rural Development 30 schemes have been planned out of which 24 are ongoing and six are new schemes. For ongoing schemes Rs. 5.62 billion reserved while Rs. 540 million will be spent six new schemes. For provision of clean drinking water an amount of Rs. 5.16 billion has been reserved for completion of 84 schemes out of which 68 are ongoing and 16 new ones. In the Annual Development Plan, an amount of four billion has been reserved for 45 schemes of Energy and
Power sector. For Irrigation sector an amount of Rs. 7.5 billion has been reserved for 209 schemes out of which 192 are ongoing and 17 new. Around 38 schemes have been planned for agriculture sector under the ADP for which an amount of Rs. 3.99 billion has been
reserved. About 2.82 billion will be spent on completion of ongoing schemes while 1.17 billion for launching of 21 new schemes under the sector.
For Industrial sector an amount of Rs. 1.64 billion has been earmarked for spending on 25 schemes, 17 ongoing and eight new. An amount of Rs. 176 million has been reserved for
nine schemes of Transport sector out of which five are ongoing
and four new. For enhancing the Forest cover an amount of Rs. 2.7 billion has been
reserved in the Annual Development Plan. For Local Government 35 schemes have been planned for which Rs. 4.58 billion has been reserved, Minister added. The KP government has reserved an amount of Rs. 2.42 billion in the upcoming fiscal for Home department under which 59 schemes have been planned. Among these 59 schemes, 40 are ongoing and 19 are new ones.
The finance minister said that Rs400 million allocated for 45 energy sector projects in the budget which included both ongoing and new ones. Various small hydropower stations would be setup in Moji gram, Shoghur, astore bony, barikot, patrak, shringle, and swarlasht areas which will generate upto 1233 MW electricity on completion.
As many as twenty new small dams would be constructed in the province at feasible site, he said adding construction work on Chashma Right Bank Canal Lift Cum Gravity scheme would be initiated next year.
The finance minister said that volume of the administrative budget has been pitched at Rs58.73 billion which is ten percent of the total annual budget and 18 more than the outgoing fiscal. Similarly development budget consisted of Rs208 billion which constitutes 34 percent of the total budget. He maintained that province’s own receipts were meager
and making slight upward readjustment in it was unavoidable. The government was well aware of the people’s problems and did not want to put more burden on them in the shape of new taxes. The government proposes slight increase in the UIP (Urban Immovable Property) tax on five Marla houses which are occupied by the tenants. The self occupied house of five Marla will remain exempted from the UIP tax.
A new service has been incorporated in the sales tax schedule named “Ride Hailing Service”. Similarly upward revision proposed in stage carriage route permit, good
forwarding agency, bodybuilding licence fees and fitness fee. Adjustment in Restaurants, hotel registration and licence fees of the tourism department also proposed in budget 2017-18.
At the outset of the his budget, the finance minister dwelt at length on the achievement of the present KP government, it made during the outgoing fiscal 2016-17. The performance of the KP government mainly revolved around elimination of corruption, enactment of necessary legislation for reforming the government institutions and creating conducive environment for investment in the province. For making the financial discipline on modern lines, he said the government approved a comprehensive PFM Reform Strategy
with the cooperation of the DFID.
He also took the credit for uncapping the net hydel profits under the leadership of the Chief Minister. The government after untiring efforts succeeded in making the Western route part of the China Pakistan Economic Corridor (CPEC) and successfully made 82 projects part of the corridor.
The KP government is expecting 24 billion dollars investment from the CPEC related projects in the province. The government constructed 43 colleges in the current fiscal
and 17 more will be completed by June 2017 while work on 62 more colleges was underway. Rs140 million spent on capacity building of the college teachers from 2013-17. The number of commerce colleges increased from 25 to 31 while the number of
commerce college students increased to 18500.