-Total volume of KP’s at Rs. 1,118.3bn
-Rs. 371 bln for ADP, 37% increase in salaries
-Rs 142 bln allocated for health in KP
-Rs. 2.7 bln to spend in KP on RHCs, BHUs
-Balochistan unveils Rs. 584 bln Budget for new fiscal year
-Deficit of Rs. 84.7 bln exists
-Rs. 237 billion allocated for development schemes
-Non-uplift expenditures will be Rs. 346.861 bln
-Rs. 71 bln allocated for education sector
-Rs. 5.5 bln for health insurance program
Bureau Report
PESHAWAR/QUETTA: Khyber Pakthunkhwa government here on Friday presented Rs1,118.3 billion balanced budget for financial year 2021-22, having a record allocation of Rs 371 billion for annual development program (ADP) and Rs747.3 billion for current budget expenditure.
The KP government has announced a record 37pc increase in salaries of all those employees who did not take special allowances from Government. Presenting the third budget of KP Government in KP Assembly, Finance Minister, Taimur Salim Jhagra said out of the total budget allocation, Rs919 billion earmarked for settled districts and Rs199.3 billion for development of merged tribal districts during FY 2021-22.
Out of total Rs371 billion ADP, KP Government earmarked Rs270.7 billion for settled districts and Rs100.3 billion for merged tribal districts. Likewise, Rs648.3 billion earmarked for settled districts and Rs 99 billion for merged districts in total allocation of Rs747.3 billion for current budget expenditure.
The minister said two innovative approaches ‘development plus budget’ and ‘service delivery budget’ were being introduced under which Rs500 billion would be spent on former focusing on mega projects such as Sehat Plus Cards, provision of furniture to Govt schools and increase in medicines budget to public sector hospitals while Rs424 billion out of Rs747 billion would be spent on the latter with priorities to payment of salaries of doctors, nurses, and teachers besides provision of medicines to hospitals and fuels to Rescue1122 ambulances. About generation of income and revenue during 2021-22, the minister said Rs1018 billion revenue and income target was set for FY 2021-22 that would be achieved from different financial resources, duties and taxes.
He said Rs475.6 billion would be collected through federal taxes, Rs57.2 billion through federal divisible pool of 1pc share under terrorism affected province, Rs26.5 billion under Gas and Oil royalty and surcharge (direct transfer), Rs74.7 billion under hydle new profit (according to MoU 2015-16) and arrears,
Rs75billion for provincial tax and non-tax revenue, Rs85.8 billion through foreign development assistance (for settled areas) and Rs3.3 billion foreign development assistance (for merged areas), Rs187.7billion under special assistance grant for the merged areas and Rs132.5billion from other revenue resources.
About details of expenditure budget during FY2021-22, the minister said total of Rs374 billion would be spent on salaries including Rs 60billion in merged areas and Rs314 billion in settled districts. Similarly Rs92.1 billion would be utilized for payment of pension including Rs0.1billion for merged areas and Rs92billion for settled districts. Besides salaries, Rs203.9billion would be spent for operation and maintenance expenditures, emergencies and district expenses including Rs38.9billion for merged areas and Rs164.9 billion while Rs74.4billion for other current expenditures.
Rs244.6billion proposed for expenditures under Provincial Development Program including Integrated Implementation Program (AIP) for merged areas, he said, adding Rs17.4billion earmarked for Annual Development Program including Rs2.4billion for merged areas and Rs85.8billion for settled districts while a record Rs19.9billion to be obtained from Federal government PSDP.
The salaries of all government employees except those who didn’t get special allowances are being increased to 37% including 20% increase in Functional or Sectoral Allowance, 10% increase in Adhoc Relief Allowance, 7% in house rent for those employees who don’t benefited from government’s accommodation scheme. KP Finance Minister, Taimur Salim Jhagra announced 100 percent increase in pensions of the widows that were earlier 75 percent.
Besides Prime Minister’s Ehsas Program and Universal Health Insurance coverage, he said, Rs10 billion allocated for wheat subsidy, Rs10 billion for food baskets to poor people, Rs10 billion for revival of business of corona affected Small Medium Entrepreneurs (SMEs), Women,Minorities and Youth through Bank of Khyber.
Similarly, Rs10.4 billion allocated for FY2021-22 to bridge gap between developed and under developed districts under Rs 61billion district development project besides Rs 2.6billion earmarked for honoraria to Khateebs of 20,000 ‘Masajid’.
To increase economic activities and revenue, the provincial government proposed decrease in tax ratio on 12 categories items and extend lowest tax ratio on 17 categories items under the Khyber Pakhtunkhwa Revenue Authority and exempted agriculture sector from agri tax obtain by Board of Revenue for FY 2021-22.
