Rs700m allocated for security of CPEC
The Pakistan Tehreek-e-Insaaf led Khyber Pukhtunkhwa Government presented a Rs 603 billion tax free balanced budget for the fiscal 2017-18 in the provincial assembly here Wednesday afternoon. The 2017-18 budget carries a Rs. 208 billion ADP that is 34 percent of total budget outlay of Rs. 603 billion.
The fifth budget of the PTI government was unveiled by Provincial Finance Minister Muzaffar Said advocate who said major focus has been laid the on elimination of corruption and development of the social sector. He also announced 10pc increase in the salaries and pension of the government employees. A handsome amount of Rs 700 million has been proposed to enhance security of the all-important China Pakistan Economic Corridor (CPEC) in the current year budget.
“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. The Finance Minister said while delivering the budget speech which the opposition parties termed as jugglery of words saying nothing substantial has been announced for the welfare of the common man.
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.
A hefty amount of 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 outstanding since long have also been reflected in the budgetary documents. The provincial own receipts have been pitched at Rs68.31 billion for 2017-18. The current expenditure has been pitched at Rs388billion to meet the provincial expenditure to be incurred next year, he said.
Finance Minister said the provincial government will generate Rs126 billion from its own sources for the development program whereas Rs82billion would be met through foreign donor agencies for feeding the development programs.
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.
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 increased from Rs12000 to Rs14000. The KP government also announced 10 percent increase in salary and pension of the government employees after merger of the 2010 adhoc 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 Government has allocated Rs65.7billion for health sector in the budget 2017-18 showing a 20percent 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.
Finance minister 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, Rs1594 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 Complex Mardan.
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 adding to provide better facilities in health institutions, Rs14 billion would be spent on purchasing state of the art medical equipment.
A some of Rs.127.90 billion has been set aside 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.
The KP Government has announced to construct 10 colleges and model schools in different districts of the province including Haripur, Karak, Charsadda, Hangu and Batagram.
The Finance Minister said that 1400 new teachers would be appointed besides holding survey of non-school going children to bring them under education net. The Minister announced special allowance for teachers performing duties in far flung areas besides special awards for them.
As many as 100 primary schools to middle, 100 middle schools to high and 100 high schools to higher secondary schools would be upgraded while 410 new primary schools on need basis would be constructed besides converting 100 mosques/Maktab schools to primary level.
The Minister said four years BS program in 63 more colleges would be started besides enhancing capacity of teacher engagement program in addition to starting of faculty development support program for lecturers studying in M Phil and PhD programs in different colleges of the province.
On need basis, he said 10 new colleges would be constructed in different districts of the province.
A scientific technology institute would be setup with assistance of Austria at a cost of Rs8.20 billion besides setting up of Quality Insurance Cell to review performance of the government and private universities.
The finance minister said the PTI government attached high priority to the law and order in the province and the police department budget has been enhanced by 21 percent as Rs3973 billion allocated for the department of police.
The annual budget in the head of law and order increased almost double in 2017-18 with an allocation of Rs. 39,733.661 million as compare to the fiscal budget 2013-14.
The document reveal that in 2014-15 the allocation was Rs 28,534.630 million, in 2015-16 it was Rs 32745.244 and in 2016-17 it was Rs 32,938.065 million while the provincial government increased the budget 21 percent in 2017-18 while allocating Rs 39,733.661 million.
An amount of Rs 700 million is proposed for security duties of China Pakistan Economic Corridor in the current fiscal budget, while Rs 1150.442 million was allocated for extending Traffic Warden System to Malakand and Abbottabad regions. Finance Minister said the province was likely to receive Rs39.17b from Federal Government as share as war against terror
Rs3.76 billion have been year marked for Irrigation sector showing 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 also 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 Rs10000 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. Similarly, the province is likely to obtain Rs20.78b as annual profit under net hydel power profit whereas the province owned receipts stood it Rs45 billion.
The finance minister informed the house that Rs8 billion allocated for payment on markup of the loans obtained by the province. Rs53 billion have been allocated pension payment which is 30 more than the outgoing 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.
Finance Minister said the Rs. 208 Annual Development Program (ADP) for upcoming fiscal year which is 34 percent of total budget outlay of Rs. 603 billion, is also 29 percent more than the amount reserved for the current year development plan. No new taxes, he said, have been announced in the new budget though slight adjustments have been made in the existing taxes.
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. concluded the Finance minister.