KP Govt presents Rs1,118.3bn balance budget 2021-22, Rs371b for ADP, announces 37pc increase in salaries

KP Govt presents Rs1,118.3bn balance budget 2021-22, Rs371b for ADP, announces 37pc increase in salaries

PESHAWAR, Jun 18 (APP):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.

KP Finance Minister, Taimur Salim Jhagra announced 100 percent increase in pensions of thewidows 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.

Similarly, exemption viz a viz decrease in registration and CVT works taxes announced to provide relief to people associated with construction industries besides cancellation of professional tax, reduction in fee for vehicle’s registration to one rupee and free re-registration.

The rate of property tax were further reduced to benefit those who regularly pay taxes besides facilities of archives, libraries, and hostels for students of the higher education and free admission to students seeking admission in primary and secondary government’s schools announced. Similarly, small farmers were exempted from land taxes.

The government has increased Science and Technology budget by 137 percent, allocating Rs2.5 billion with major projects including establishment of citizens facilitation centers, early age childhoods program, and construction of model science laboratories and schools.

Similarly, Rs48.2billion would be spent on construction of 3,000km roads including Peshawar-DI Khan motorway, Swat Motorway Phase II, Haripur Bypass and Peshawar-Torkham Motorway during FY2021-22.

A record Rs13.2billion allocated for agriculture sector with major projects includes promotion of olive cultivation, establishment of trout fish villages in Malakand and Hazara divisions and Rs800 million for Prime Minister’s Industrial Emergency Program.
The government decided to revive Torkham Safari Train Service to promote tourism in Khyber Pakthunkhwa.

Rs1billion earmarked for development and welfare of women with major projects include revival of women commission with allocation of Rs100million budget, establishment of Cadet College for girls in Mardan, allocation of 5% quota for women in SIDP ‘Akhowat’ Program and provision of interest-free loan to all register women entrepreneurs.

Rs100 million grant is proposed for senior citizens enabling them to get treatment in hospitals’ special counters and wards.

The minister said the government believed in uniform development of all districts and announced to establish Pak-Austria Educational Institute in Haripur, Hattar Industrial Zone, Pakistan Digital City in Haripur, 870MW Seki-Kinari Hydropower Project, 300MW Balakot HPP in Hazara Division while in merged areas, Mohmand Marble City, and Kurram-Tangi and Bara Dams would be constructed.

In Southern districts of Khyber Pakhtunkhwa, Peshawar-DIKhan Motorway, new building for Bannu Medical College, Chashma Right Left Canal, Bannu Economic Zone, Daraband Economic Zone in DIKhan and University of Lakki Marwat would be established.

Swat-Motorway Phase-II, Peshawar-DIKhan Motorway, Small Industry Estate, establishment and setting up Special Technical Zone would be achieved through public and private partnership through collaboration of government and private sector.

The development budget of Culture and Tourism Department has been increased to Rs12billion against Rs2billion in last fiscal year under which Integrated Tourism Zones, Hund Water Park on 400Kanal land, establishment of Rs3.8billion innovation fund, first motor sports arena of Pakistan and construction of Arbab Niaz Stadium in Peshawar and Kalam Cricket Stadium would be completed.

KP government has allocated Rs1billion for local bodies elections, Rs2.8billion for extension in Rescue1122 service in tehsil level besides Rs 60million earmarked for purchase of 50 vehicles and other equipment for 25 TMAs of merged areas.

Rs1420million set aside for Water and Sanitation Services Program, construction of new general bus stands on 345Kanal in Peshawar, completion of Peshawar Northern Bypass, establishment of 2900 tube-wells to provide clean drinking water to 8.4million people, construction of lawns and roadside green belts in 25 cities and pavement of streets on 480,000 square feet under civil development portfolio would be achieved.

The Minister said 111 percent increase in allocated amount for provision of medicine in hospitals of settled districts were registered besides establishment of four hospitals under Public Partnership with allocation of Rs40billion.

Likewise, Rs10.5 billion allocated for investment to improve services in category-C hospitals in KP while Rs 25 billion for Medical Teaching Institutions and Rs7billion for medical colleges, having a total investment of Rs42billion allocated.

He said Rs1billion would be spent on strengthening, rehabilitation and provision of round the clock services to patients at Rural Health Centers in KP and Rs1.2million for up-gradation of basic structure, Rs1.5million for increase in provision of medicines and Rs2.6million for better health services in the province.

Medical insurance plan for the government employees has been announced under which reimbursement facilities to those officials, who get treatment from selected clinics, and OPDs would be made.

Health Facilitation Program is being expanded and over 300,000 new families would be registered in financial year 2021-22, the minister said adding health budget has been enhanced to Rs21billion with latest facilities of lever transplant that was made part of Sehat Cards Plus program under which up to Rs50million would be spent on each patients.

He said Rs1billion for lever transplant and health budget of merged areas has been enhanced to Rs1billion.

Similarly, Rs14.9billion allocated for rehabilitation of all major hospital in Khyber Pakhtunkhwa. Model institutes for street children would be established in Peshawar, DIKHAN and Swat districts besides establishment of Rehmatul-lil-Alameen fund for assistance of special children.

Rs230 million allocated for education scholarship for merged areas in Higher Education Department and Rs100million administrative budget for supply of furniture and other necessary items and 300 colleges would be given premier status and construction of ongoing 40 colleges would be completed.

In elementary and secondary education, the minister said 10,000 model schools would be constructed under early childhood education program in KP and Rs4.5billion to be spent on supply of furniture to government’s schools, 97 IT laboratories equipped with IT equipments, 276 science laboratories would be constructed while 4,300 school teachers to be recruited in merged areas.

Similarly, 20,000 schools teachers and 30,000 school leaders would be appointed in Khyber Pakhtunkhwa and that 21000 schools would be constructed, rehabilitated and up-graded that would create enrollment space for 120,000 students.Finance Minister KP said the government has achieved great successes in all sectors in FY 2020-21 and constructed state-of-the-art Peshawar Institute of Cardiology, new OPD block at Khyber Teaching Hospital Peshawar, mother and children hospital, new women block at DHQ Mardan, Allied and Surgical block at Lady Reading Hospital besides converted Baacha Khan Medical Complex Mardan to Medical Teaching Institution (MTI) costing Rs16billion that brought positive revolution in health sector in KP.

Coordinated ambulance services extended to all 25 districts of KP while 194,000 passengers are being daily facilitated through BRT. Likewise, Rs5.8 million vehicles are passing through Swat Motorway per year that was completed with an estimated cost of Rs41billion. Similarly, US $50million investment has been made in Rashakai Special Economic Zone Nowshera being constructed on 1000 acres and Rs10billion spent on construction of Mohmand Dam, Khyber Pakhtunkhwa Economic Corridor, five new grid stations and other newly completed projects.

Provincial revenue would be increased by Rs50billion for the first time in KP as 68% increase had been witnessed in last two years, reflecting investor’s overwhelming confidence in policies of the government.

For the first time in KP’s history, he said development expenditure exceeded to over Rs200billion despite Covid-19 pandemic situation. He said KP was the first province that provided free health insurance to its every citizen up to Rs1million and up till now 14million people benefited from this landmark healthcare initiative. Likewise, 7.2million families were provided health insurance in 25 districts of KP while categories of 244 government and private hospitals were made.

The Minister said Rs24billion allocated for health insurance program during FY2021-22 under which each family can get free treatment up to Rs1million while 165,642 persons benefited from Sehat Plus Program.

He opined that new NFC Formula 2017 should be implemented on national census’ basis by including the population of merged areas and other statistics of KP.

The government is striving to solve net hydel profit payment issue through AGN Qazi formula, he said, adding implementation of 2016 MoUs in letter in spirit besides 5% indexation payment and regular monthly payment of the net hydle profit after separating it from Wapda viz a viz lumsum payment for existing arrears was imperative.

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