F.P. Report
PESHAWAR The Khyber Pakhtunkhwa Minister for Finance Aftab Alam on Friday presented Rs 1754billion annual budget for the fiscal year 2024-25 with a surplus of Rs 100billion. The government has projected Rs 1,654 billion expenses, said the minister during budget speech in the assembly here, adding that as per the instructions of the Chief Minister Ali Ameen Gandapur the budget 2024-25 mainly focused on social protection, peace, employment opportunities, and economic development.
The government has proposed 10 percent increase in both salaries and pension of the government employees and increase minimum wage from Rs 32000 to 36000. While giving details of the budget 2024-25, he said that the KP government anticipates receiving a total 1754 billion under different heads during the fiscal year 2024-25 including 1212.036 billion from the federal government under Federal Tax Assignment, one percent of divisible pool on war on terror, Straight Transfer under the head of royalties and surcharge on oil and gas, windfall levy and net hydel profit.
He said that the KP province considerably improve its income during the last few years and had chalked out a mobilization plan and fixed a target of achieving Rs 93.5 billion revenue for the fiscal year 2024-25. He said the KP government has decided to improve tax net instead of increasing the taxes and for the purpose several steps have taken including reforms in sales tax, property tax, tobacco tax, cess and other taxes.
The government has decreased the sales tax ratio on different online services in the budget, adding that the tax has reduced on hotels from eight percent to six percent and bound the hotels to use Restaurant Invoice Management System. Similarly, fixed sales tax rate has been proposed for wedding halls. Aftab said the government has also given relief in property tax and reduced the tax amount on per kanal for factories form Rs 13600 to 10,000.
The tax on commercial property which was 16 percent of the monthly rent previously has been reduced to 10 percent and five percent for private hospital, medical stores and other businesses related to health sector. Additionally, the government proposed to increase tobacco development cess to increase income on the production of tobacco, he said and informed the house that the government has reduced provincial tax from 6.5 percent to 3.5 percent on transfer of properties.
The government has earmarked Rs Rs 362.7 billion for education sector including Rs 35.8billion for higher education and Rs 326.9billion for elementary and secondary education with an increase of Rs 13 percent. Similarly, Rs 228.8billion has been allocated for health sector with an increase of Rs 14 percent. Rs 140.6billion for peace and order in the province with an increase of Rs 15percent, Rs 60.5billion for roads and infrastructure with an increase of Rs 03 percent, Rs 8.1billion for social welfare with an increase of Rs 06 percent, Rs two billion for mineral with an increase of Rs two percent, Rs 7.5 billion for industry and commerce with an increase of Rs 17 percent, Rs 9.6billion for tourism with an increase of Rs 25 percent, Rs 28.6 billion for agriculture with an increase of Rs 54 percent and Rs 30.8billion for energy sector with an increase of Rs 67 percent.
The current expenditure for the settled districts for the fiscal year 2024-25 was estimated Rs 1093.087 billion including provincial salaries, Health MTIs’ salary budget, Tehsil Salary, pension and non-salary expenditures of health MTIs, Tehsil, capital expenditure and ways and means. Similarly, the current expenditure for the merged districts was estimated Rs 144.628 billion including provincial salary, Tehsil salary, pension, non-salary, temporarily displaced persons and non salary expenditure of Tehsils.
The government has allocated Rs 416.284 billion for development expenditures for settled and merged districts including Rs 120 billion for Provincial Annual Development Program, Rs 24 billion for district annual development program, Rs 36 billion for merged districts annual development program, Rs 79.286 billion for Accelerated Implementation program (AIP), Rs 130.587billion for foreign project assistance and Rs 26.411 billion for federal PSDP. The Minister said that the budget 2024-25 was not just a budget document rather it was also a roadmap for development and prosperity of the province and also reflection of the government’s strong resolve to uphold social justice, gender equality.
At the end he thanked the finance department, planning and development in drafting the budget document within very short span of time. KP Govt announced Rs120 billion annual development program for financial year 2024-25.
As many as Rs416.30 billion allocated under head of development expenditure including Rs120billion for provincial ADP, Rs24 billion for district ADP, Rs36 billion for merged districts ADP and Rs79.29 for Accelerated Implementation Program (AIP). The ADP and salient features of KP budget 2024-25 announced by the Finance Minister Khyber Pakthunkwa Aftab Alam includes allocation of Rs12 billion for Ehsas Employment Program, Youth Program and Skills program under which 100,000 jobs would be created for people of the province.
Presenting budget 2024-25 at floor of the house, the finance minister said that 5000 new houses would be constructed under Ehsas Own House Program for which Rs3 billion allocated. Likewise, Rs10 billion earmarked for CRBC Lift Canal to irrigate three lakh acres lands, launching of Tank, Chodran and Daraban dams, allocation of Rs26.90 billion for wheat procurement, Rs6.50 billion for construction of roads, Rs 2.50 billion for emergency works, construction of Dir and DI Khan motorway under public private partnership mode, construction of road to link DI Khan with Hakla motorway and 470 megawatt Lower Spat Gah project.
For education sector including high education, KP Govt allocated Rs362.68 billion for financial year 2024-25 which is 13 percent more compare to last fiscal year. Similarly, Rs35.82 billion set aside for higher education that was 11 percent more than last financial year. Besides establishment of 30 degree colleges and over 350 schools in rent buildings, the government of KP also allocated Rs326.86 billion for elementary and secondary education. Similarly, Rs232.08 billion allocated for health sector in financial year 2024-25 which was 13 percent more compare to last fiscal year while air ambulance service and Peshawar Institute of Cardiology’s Satellite Centre for southern districts of KP announced.
Besides allocation of Rs10.97 billion for purchase of medicines, Rs28 billion earmarked for Sehat Card Plus program for settled districts and 9 billion for merged tribal districts. For law and order, KP government announced Rs140.62bn for improvement of law and order which is 12 percent more compare to last fiscal year while PEHL 911 project was being launched in home department.
The budget of social welfare department increased to Rs8.11 billion which is six percent more while shelter homes program budget jacked up to Rs600 million against 300 million in last fiscal year in merged tribal districts. Similarly, Rs7.53 billion for industries, Rs9.66 billion for tourism with a project of field heritage school and tourism helpline 1422, Rs28.93 billion for agriculture with olives project, Rs31.54 billion for energy sector with establishment of KP distribution company and launching of Batakundi-Naran hydro project to produce 235 megawatt announced in budget 2024-25.
Besides allocation of Rs14.69 billion for livestock and Rs14.05 billion for forestry with launching of billion trees plus project, the KP Govt also announced 10 each percent increase in basic pay of its employees and pensioners besides increased minimum wages to Rs36000 from existing Rs32000. The total receipts of the province is pitched at Rs1754 billion while total expenditure including current and development was Rs1654 as the present budget which was Rs 100 billion surplus.
The Minister said that Rs one million treatment for each family under universal health coverage provided for around 40 million people including 52 percent women population. Besides establishment of Peshawar Institute of Cardiology, orthopedic and spine surgery bloc were established at Hayatabad Medical Complex Peshawar while Saidu College of Dentistry setup.
Likewise, over 2000 community schools and girls cadet college in Mardan were setup besides 10 universities. To counter climate change and desertification, he said billion trees plus program was being launched during 2024-25. Under NFC award, the province share is Rs262 billion against which Rs123 billion received while Rs139 billion annual deficit.
He said that under the AGN Qazi formula approved by the Council of Common Interest, about Rs1800 billion outstanding amount was pending and Rs46.82 billion outstanding amount under the head of oil and gas. He said that a revenue mobilization plan was prepared under which a Rs93.50 target was set and the government was concentrating on increasing the tax base.
