PESHAWAR: 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 present budget was based on five main pillars including a record increase in salaries of government employees, development budget, devoted services to people, increasing KP’s own resource revenue and introduction of goal oriented reforms and innovation in the overall governance system.
He 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.
Jhagra said 100% increase in pension expenditure has been witnessed in last couple of years and share of pensions, which was only 1% in 2003-04 had jumped to record 13.8 percent of total budget in 2021-22.
To overcome pension expenses, he said two proposals including increase in upper age limit of Govt employees ie 55 years for early retirement up or completion of 25 years service were under consideration that would save Rs12billion per year.
Similarly, Rs1 billion per year would be saved from change in the pension rules under which widow, children and parents of deceased employees would be entitled for pension benefits. The minister announced that minimum wages of labourers and daily wagers were being increased to Rs 21,000.–APP