Analysis: In Khyber-Pakhtunkhwa budget, PTI lays out a strong start

Published: June 18, 2013

Public safety gets the second-highest allocation, at nearly Rs38 billion, no surprise in a province that has faced the onslaught of a brutal militant insurgency. DESIGN-FAIZAN DAWOOD/FILE

KARACHI: 

Finance Minister Sirajul Haq may have delivered the address, but the Khyber-Pakhtunkhwa budget had Pakistan Tehreek-e-Insaf economic wizard Asad Umar’s fingerprints all over it. The message from the PTI appears to be clear: they meant it when they said they planned to focus on governance.

Budgets in Khyber-Pakhtunkhwa have historically been a litany of complaints against the federal government, followed by a recitation of numbers that, frequently, even the provincial finance ministers found tedious, boring and difficult to understand. Not this time: the PTI-led Khyber-Pakhtunkhwa government delivered their first governing document and made sure to lay out their strategy for the development of the province and connect it to their spending decisions, as laid out in the numbers.

When the numbers were first revealed, it immediately became clear why the PTI was unwilling to share the education portfolio with its coalition partner, the Jamaat-e-Islami. Education has the lion’s share of the provincial budget, about 30% of total spending. The Rs102 billion that Peshawar will be spending on education is substantially higher than last year, though the increase appears especially exaggerated due to an accounting change brought about by the new administration. Salaries of public school teachers were previously counted as part of the “general public service” budget and have now been counted as part of the education budget.

Public safety gets the second-highest allocation, at nearly Rs38 billion, no surprise in a province that has faced the onslaught of a brutal militant insurgency. The third highest allocation went to healthcare, just over Rs29 billion.

The PTI-led administration’s budget is a sharp contrast to the money bills presented by their predecessors, the Awami National Party, which had a tendency to try to blame all the ills of the province on a lack of federal cooperation. The PTI’s budget, by contrast, appears to mostly ignore the aspects that the provincial government cannot control – militancy, the tribal areas, etc – and chooses to focus on service delivery in areas that are directly under its jurisdiction: education, health, infrastructure, etc.

So, for instance, the provincial government nearly doubled the budgeted amount for urban and regional infrastructure, including drinking water and sanitation infrastructure, to Rs26 billion. Much of this spending will be financed with the assistance of foreign donors, who have allocated a total of Rs35 billion for aid to Khyber-Pakhtunkhwa.

On the revenue side, however, the provincial budget remains disappointing. There has been little increase in what Peshawar expects it can collect in revenues on its own. The province’s own revenue-generating activities (aside from hydroelectric power) account for just 4.4% of the total revenue available to the government. This, perhaps, should not come as a surprise, since tax policy was among the weakest segments in what was said to be an otherwise well-crafted manifesto.

The single biggest chunk comes in the form of various transfers from the federal government, which taken together account for about three-quarters of the budget. Profits from hydroelectric power generation, little of which is done by the provincial government itself, account for another 10%, with foreign aid accounting for the remainder of Peshawar’s financial resources.

Nonetheless, the 2014 budget document was also a major step forward in terms of transparency: the Khyber-Pakhtunkhwa government provided an unprecedented level of detail in its figures, breaking out, for instance, how much it spends on government salaries versus how much goes towards other portions of its expenditure. It provided an exceedingly useful record of historical data, and it provided all of the numbers in an easy-to-use, and even easier-to-analyse Microsoft Excel files.

Whether all of these measures will translate into improved lives for the citizens of Khyber-Pakhtunkhwa is an open question, but the effort appears to be significantly above what the province has lived with so far.

Published in The Express Tribune, June 18th, 2013.

Related Videos

Reader Comments (69)

  • Usman
    Jun 18, 2013 - 6:04AM

    To people who were always talking about experience, this is the first budget by PTI and already it has set a new standard in Provincial Management. Experience counts for nothing, as shown by the budgets of the PPP and PMLN. Learn something from it my fellow citizenatis.

    Recommend

  • Sheby
    Jun 18, 2013 - 8:47AM

    Looks like PTI means business!

    Recommend

  • Truth_Prevails
    Jun 18, 2013 - 8:52AM

    Creating new benchmarks! Great Job PTI!

    Recommend

  • AK
    Jun 18, 2013 - 9:36AM

    Looking very balanced in current situation and good to see that education sector has been allocated considerably higher amount.

    Recommend

  • Raza
    Jun 18, 2013 - 9:49AM

    “Finance Minister Sirajul Haq may have delivered the address, but the Khyber-Pakhtunkhwa budget had Pakistan Tehreek-e-Insaf economic wizard Asad Umar’s fingerprints all over it.”
    Well done PTI. Whole world is watching you, even the liberal (fascists). Keep flying.

    Recommend

  • frank
    Jun 18, 2013 - 10:23AM

    @Usman:

    the much touted ‘experience’ of the ppp and pml-n consists of two short lived governments each during the 90s that broke all records of corruption and mismanagement. pakistan can do without such ‘experience’.

    Recommend

  • Yasir
    Jun 18, 2013 - 10:24AM

    For the first time in my life i took interest in what kind of budget provinces will present. One has to accept without any bias that with the emergence of PTI there is sense of urgency among the political parties to deliver.

    Recommend

  • Skhn
    Jun 18, 2013 - 10:32AM

    This is what you call a people’s budget! Education, Health and Public safety are the main issues of KPK! Give um a break, they had it rough, show the progress, provide them security, sent their kids to school, You can always start collecting tax from next year! Good job keep it up.

    Recommend

  • Abdullah
    Jun 18, 2013 - 10:39AM

    Most importantly in budget document, special focus has been put on women education and incentives will be provided to every girl as long as she continue her studies.
    Well done PTI

    Recommend

  • mir
    Jun 18, 2013 - 10:45AM

    Being a pmln voter I am extremely impressed by their approach. Maybe they were right all along and I voted out of stupidity. They needed this chance and show what they really meant. I guess all the negative campaigning got to me. But if they perform no amount of money spent campaigning will stop me from voting for them next time. The nation is watching and best of luck.

    Recommend

  • Bilal
    Jun 18, 2013 - 10:53AM

    PTI is playing aggressive man, Seems like they will retain their Vote bank quite easily. Best of luck PTI. so proud of imran khan led people.

    Recommend

  • Ali Hamza
    Jun 18, 2013 - 10:56AM

    some investment should have been done to increase provincial revenue for the next year. these could have been investments in tax collection to increase the tax base at least if not imposing new taxes. investments could have been made in supporting small industries.

    Recommend

  • Kamran
    Jun 18, 2013 - 10:57AM

    well done Asad Umar…. revolutionize our province.. nd it can be a practice run to do the same to the entire country next time.

    Recommend

  • Saquib
    Jun 18, 2013 - 11:06AM

    GOOD job PTI, INSHA-ALLAH you will have majority stake in next election.

    Recommend

  • ALI
    Jun 18, 2013 - 11:07AM

    Yes it does show the prints of corporate number playing….adding salaries to Education budget and pretending it to be massive increase. If thats the accounting practice it should be applied to all heads to ensure transparency. Where are the measures of revenue enhancement, tax on weatlhy, agriculture tax, efforts to curb smuggling, self reliance?
    IK criticized Punjab Govt a lot on not producing electricity and Asad Umar was chief critic saying that i would have invested from provincial budget instead of waiting for investors….where are those allocations in a province which can generate huge hydro power?
    This budget exposes corruption of previous govts and lack of depth in PTI economic policies. Naya Pakistan will not be built by allocating salaries in new heads and not taking up the challenge of revenue enhancement specially if you promised Welfare state…Welfare state need money to do welfare.

    Recommend

  • Abbas
    Jun 18, 2013 - 11:14AM

    PTI is the future of Pakistan. Good days are not far…

    Recommend

  • MG
    Jun 18, 2013 - 11:17AM

    Wondering if the allocated budget is meant of only men of the province

    Recommend

  • Zulfiqar
    Jun 18, 2013 - 11:23AM

    Hats off to KPK Team, Proud ! :)

    Recommend

  • Abbas
    Jun 18, 2013 - 11:24AM

    Education for KPK and Roads for Punjab…..:)

    Recommend

  • MbZ
    Jun 18, 2013 - 11:33AM

    @Ali Hamza

    They will set up KP Revenue Authority which will bring tax reforms in order to increase the tax to GDP ratio.

    Such a relief. I voted the right people i guess. Godspeed.

    Recommend

  • Muhammad Malhan Khan
    Jun 18, 2013 - 11:36AM

    Well Done PTI, u have made us proud, being karachiite, I fully endorse Insha Allah, PTI will be presenting budget of Sindh, after next elections. Keep it Up.

    Recommend

  • Asif
    Jun 18, 2013 - 11:40AM

    Simply TREMENDOUS!

    30% for Education!
    A lesson for CENTRE and PUNJAB.
    Also for SIND and Balochistan.

    Set example for the rest of country. Everyone is looking at what you do and expecting a lot more. Pl generate more revenue from the province as right now it’s only 4.4% but it depends how honestly you spend the public money. If you spent honestly people will shower money from their pockets generously to spend on KPK well being. PTI it’s a launching PAD for you and if you launched yourself successfully there will be no one to stop your flight. All of us are with you with our fingers crossed for PTI.

    God may help, bless and guard you.

    Recommend

  • Jun 18, 2013 - 11:43AM

    1 year from now we want figures to be translating into reality ! dats the barometer of measurement ………!

    Recommend

  • John the Baptist
    Jun 18, 2013 - 11:47AM

    So here is something for ET to do;. It will require using a side of the brain that lies dormant at the moment but once activated, will do wonders for the country: analyse and publish the entire, line by line budgets of all provinces so that people can COMPARE not only current with past allocations but also one province versus another. Only then people will be able to determine that future is based more on intent than experience!

    Way to go PTI and this is just the beginning. What Imran says, he does. ALWAYS!

    Recommend

  • Jun 18, 2013 - 11:47AM

    1 year from now i want these figures translating into the ambit of reality …..! dats the true barometer

    Recommend

  • Asad
    Jun 18, 2013 - 11:56AM

    Still dependant on Foreign aid..

    Recommend

  • imran
    Jun 18, 2013 - 12:16PM

    this reflects the vision of pti leaders. they have clearly shown their intentions towards betterment of the people of kpk. hope they will turn this province into a role model and will make whole pakistan “ak naya pakistan”Insha Allah..

    Recommend

  • hafiz ghulam mustafa
    Jun 18, 2013 - 12:38PM

    well done PTI

    Recommend

  • 3footninja
    Jun 18, 2013 - 12:38PM

    great going PTI! time to show all the imran farhats of pakistani politics how its actually done. this budget has made us all proud. wish you the all the best!

    Recommend

  • Ahsan
    Jun 18, 2013 - 12:44PM

    Good luck PTI!

    Recommend

  • AASIA SOHAIL
    Jun 18, 2013 - 1:12PM

    Nice relief to KPK people by PTI.Well done MR.SIRAJ UL HAQ for a non tax free budget especially increase in labour wages by 15%
    Aasia Sohail

    Recommend

  • Jun 18, 2013 - 1:43PM

    well done IK. In Sha ALLAH nxt tym u will be the prime minister of Pakistan

    Recommend

  • ALI SAHI
    Jun 18, 2013 - 1:54PM

    Where is the allocation of funds for Electricity projects?
    Why the Health budget is far below (almost 50% of) Punjab in percentage (3 % vs 5.6 %)
    Why the Budget for education includes salaries of educationists in reflected 29.8%?

    PTI supporter i am but will not be be fooled. If the PTI tries to play with us… we will change sympathies. simple as it is.

    Recommend

  • Moazzam Salim
    Jun 18, 2013 - 2:13PM

    I do not want to burst the PTI bubble or the author’s unrealistic approach towards the KPK Budget but I really do not see any major change in policy or the funds allocation. For example KPK will be spending a large amount on underpasses and overhead bridges in Peshawar, providing a huge subsidy on purchase of wheat! computerization of land record etc. etc which remind us of the Punjab Budgets of the years gone by. Bottom line; there is no change in the basic facts and realities just a change of perspective. Give and take a few billions here a few billions there but the overall direction of all the provincial budgets is the same. I know it is a sore subject with the PTI supporters but please remind me what exactly are you calling a revolutionary change in KPK?

    Recommend

  • aaaaa
    Jun 18, 2013 - 2:21PM

    Good budget by pti, but last years development budget (non-salary) for education was Rs. 12.18 billion. This year it is Rs. 13.83 billion, an increase of 13.5%. Adjust for inflation and the figure is close to 0% increase. Which is a far cry from the 11-fold increase which is doing the rounds currently.

    Recommend

  • Zubair
    Jun 18, 2013 - 2:22PM

    Dear readers, its KP (Khyber Pakhtunkhwa) and not KPK. I have seen this mistake on many forums and this should be discontinued.

    Recommend

  • Anas Ahmed Jafri
    Jun 18, 2013 - 2:29PM

    Leaving out all the numbers behind, and the whopping spending increase on education. The most interesting thing is most people who voted for PTI in Punjab and Sind are more interested in KPK’s budget rather than their own provinces.

    Me being from KHI now know this budget by heart. Natural Integration PTI way:)

    Recommend

  • Jun 18, 2013 - 3:09PM

    Hats off KPK and PTI.

    For revenue, PTI should spend more on Hydro power generation and exporting/selling it to other provinces.

    Recommend

  • nasib akram
    Jun 18, 2013 - 3:20PM

    Well done PTI!!!!!!!!!!!!!!!!!
    you proved it to the people of Pakistan that vision and sincerity can do a lot……………..

    Recommend

  • mariya
    Jun 18, 2013 - 3:26PM

    i am very proud being a pti suppoter.This budget will be a step towards a naya Pakistan,inshallah.I hope and strongly believe pti will diliver,inshallah.God bless great IMRAN KHAN

    Recommend

  • John the Baptist
    Jun 18, 2013 - 3:46PM

    @Moazzam Salim:

    We have better chance of convincing a cat to lay an egg than convincing you of the drastic changes in the KP budget. Hence, we beg your pardon and leave you to be happy in your lala land. Enjoy!

    “The mind of a bigot is like the pupil of the eye; the more light you shine on it, the more it contracts”

    Recommend

  • John the Baptist
    Jun 18, 2013 - 3:55PM

    @aaaaa:

    Good budget by pti, but last years development budget (non-salary) for education was Rs. 12.18 billion. This year it is Rs. 13.83 billion, an increase of 13.5%. Adjust for inflation and the figure is close to 0% increase. Which is a far cry from the 11-fold increase which is doing the rounds currently.

    Where are you getting these numbers from? The pie chart above shows education at Rs. 102.4 billion (29.8%), the news items doing rounds say Rs. 66.6 billion and you came up with Rs. 13.83 billion. Can ET confirm for sure and publish what the actual figure is so people don’t waste time typing all kind of nonsense based on wrong figures? I mean is that asking too much ET?

    Recommend

  • Faizullah Durrani
    Jun 18, 2013 - 3:56PM

    Best of Luck KP, PTI and Siraj ul Haq

    Recommend

  • Ali S
    Jun 18, 2013 - 4:33PM

    PTI is doing its part, but are the people of KPK ready to embrace modern education?

    Recommend

  • khalil
    Jun 18, 2013 - 4:48PM

    well done Siraj ulhaq , he has used his xperience to draft most balanced budget in available resources . . .

    Recommend

  • Muhammad Qasim
    Jun 18, 2013 - 4:50PM

    KPK budget was whole solely developed by Siraj ul Haq and his team. This fact is also admitted by Asad Ummar , see his official twitter and facebook account. Here is post budget press conference of Sirauj ul Haq and cleared who developed the budget https://www.facebook.com/photo.php?v=552108214835484

    Recommend

  • Muhammad Qasim
    Jun 18, 2013 - 4:52PM

    The KPK budget was prepared by Siraj ul Haq and his team with out any other in put.. see post budget press conference they cleared who developed the budget https://www.facebook.com/photo.php?v=552108214835484

    Recommend

  • Amjad Ali
    Jun 18, 2013 - 5:06PM

    Like every modern story begins with its end, the story of KPK successful government has begun. This budget is excellent and unprecedented, never presented by any government either at provincial or Federal level. But this is not the end rather the beginning of an end and there is much more positive to come in near future. This is ample proof that if there is a WILL there is a way. Those who still don’t believe that a TOTAL CHANGE has come to Pakistan should wake up from slumber and see for themselves with open eyes, the SUN rising from East this day of passing budget. This improbability is a sign of the end of time (Doomsday) when we all will one day see the Sun really coming out of eastern horizon. So look sharp and be ready for the Hereafter.

    Recommend

  • Amjad Ali
    Jun 18, 2013 - 5:10PM

    Like every modern story begins with its end, the story of KPK successful government has begun. This budget is excellent and unprecedented, never presented by any government either at provincial or Federal level. But this is not the end rather the beginning of an end and there is much more positive to come in near future. This is ample proof that if there is a WILL there is a way. Those who still don’t believe that a TOTAL CHANGE has come to Pakistan should wake up from slumber and see for themselves with open eyes, the SUN rising from East this day of passing budget. This improbability is a sign of the end of time (Doomsday) when we all will one day see the Sun really coming out of eastern horizon. So look sharp and be ready for the Hereafter.

    Recommend

  • Sameer Raza
    Jun 18, 2013 - 5:16PM

    Now thats what i call a revolutionary budget, unlike what the PMLN showed there’s which focuses only on making people illiterate and poor then ever and just to build some roads or buildings from which they think that the people will vote them again fufu…. but looks like my vote to PTI finally payed off, what i expected from PTI, has made me really proud.

    Recommend

  • Amer
    Jun 18, 2013 - 5:25PM

    All you PTI Supporter….. You have to be blind deaf brainless and off course Stupid to follow PTI…. Only look at the allocation of 35 billion only in foreign aid….. and what is pti manifesto. … I haven’t seen in any others budget then kpk…. well done asad and pti…..

    Recommend

  • sulfi
    Jun 18, 2013 - 5:29PM

    best of luck Siraj-ul-haq

    Recommend

  • John the Baptist
    Jun 18, 2013 - 5:55PM

    @Amer:

    Take a chill pill and think before you type. Look up the definition of “aid” versus “loan”–this is all aid. Then while at at, look up the difference between “bilateral” and “multilateral”–this is multi-lateral aid by World Bank, ABD, etc. And finally, look up “sovereignty”– it resides with the federation, not with the provinces so you don’t trade away anything by getting aid.

    Given the level of intellect we face here, shall KP government say no to Bill Gates’ offer to help eradicate polio? Junior can always gift this money to KP by scrapping the white elephant jangla bus projects he has in the budget, no?

    Recommend

  • Hasnain
    Jun 18, 2013 - 6:08PM

    @Express tribune, Please share source of your news. as if many TV channels and leading newspapers of country are telling KPK’s education budget 66 Billion, but you told it around 102 Billion.

    Recommend

  • Hasnain
    Jun 18, 2013 - 6:24PM

    @Express Tribune, Please share source of the news, as leading TV Channels & News Papers are showing KPK’s education budge is 66 Billion. and your source is showing it around 102 Billion.

    Recommend

  • Idealist
    Jun 18, 2013 - 8:08PM

    I don’t call this a revolutionary budget! (being a PTI supporter) especailly I loath 35%reliance on foriegn aid and province’s revenue only 4.4% what is this? I agree with Ali , show us tax reforms and increased revenue!!

    Recommend

  • Imtiaz
    Jun 18, 2013 - 8:49PM

    Presenting a budget does not mjean that these ambitious targets have been achieved, it is just that an ambitious target. To execute and achieve these targets one needs management experience and cash (unless they want to deficit finance it from somewhere). Time will tell how that is done – I hope it goes as planned, the way PTI provincial parliamentarians are getting killed I doubt if they will be in majority in a very near future. Khan sahib you need to start that dialogue with your Taliban brethern.

    Recommend

  • Silas
    Jun 18, 2013 - 9:32PM

    @Usman:
    Experience is not important? Baatein to main bhi kar lun. Budget banana to koi mushkil kaam nahi hay, us ko implement karna mushkil kaam hay. When your party is able to translate its words into actions, that will count, and then you can boast as much as you can about your party. Right now, these are just empty words, for all three provinces. We have to wait for 5 years to find out who was able to implement their budget or was the budget empty idealistic dreams that anyone can come up with.

    Recommend

  • Razgriz
    Jun 18, 2013 - 9:35PM

    @Usman:
    Your comment is the reflection of the naivety of PTI supporters. Budget to main bhi bana lun bhai. The real thing is getting the funds and acting upon the budget. I do not support PPP or N either but experience does count. Anyone with some concepts of accounting can come up with a budget. THe result matters.

    Recommend

  • AKHAN
    Jun 18, 2013 - 10:34PM

    @John the Baptist: +1 You are totally right. I don’t know from where ED get excel file it not publish by KPK government on there official site. Can ED share his excel file please.

    last government revised 681.068 to 945.297 million which mean PTI in fact reduced the education budget by 264 million. Normally it should be always greater or equal to the last revised budget.

    Recommend

  • aaaaa
    Jun 19, 2013 - 12:29AM

    @John the Baptist:

    I replied to your query, i hope it gets published. Just wanted to add that last year Punjab’s allocation for education was Rs. 31 Billion, but they ended up spending Rs. 41 Billion on education. Surely thats a good thing. Means they’ve got the right priorities, as “The good news from Pakistan” report also shows. ( http://reformthinktank.uberflip.com/i/119824 , It talks about the giant strides in education Punjab has made in the last 4 years under Shahbaz Sharif, written by Sir Michael Barber, a highly respected and credible individual working for more than 30 years in the field of education.) Budget this year is Rs. 40.6 Billion, so if you want to compare allocated figures its gone up 30%, but if you want to compare the actual money spent we’ll have to wait a year and see. Source is, again, DAWN.

    http://dawn.com/news/1019054/govt-fails-to-legislate-on-private-schools-education-to-get-rs929bn-more

    So, as far as im concerned, that education emergency IK keeps on harping about is already being dealt with effectively by Shahbaz Sharif, and KP’s budget shows that IK didn’t do anything for education.

    Recommend

  • RED ARROW
    Jun 19, 2013 - 1:45AM

    jugglery of figures…the salaries of teachers and other staff is included in education budget…in previous budgets that expenditure was shown in general public service…now it is shown in education budget,,,

    Recommend

  • Muneeb
    Jun 19, 2013 - 9:29AM

    Where is the broadening of tax base? Were there any plans unveiled for broadening the tax base? Only 4.4% comes from taxation, while Imran’s PTI which claimed to not go for foreign aid will be getting 10 Billion PKR from foreign sources.

    Recommend

  • Proletarian
    Jun 19, 2013 - 10:11AM

    So, Imran Khan’s solution is the begging bowl. Its also nice to see he doesn’t plan on improving tax collecion anytime soon, which is good news for his upper class and middle class supporters. In view of this new overreliance on imperial aid I say we should rename KPK as South Sudan.

    Recommend

  • aaaaa
    Jun 19, 2013 - 8:17PM

    @John the Baptist:

    ET didn’t publish the comment, but read this. It sums up everything quite nicely.

    http://www.thenews.com.pk/Todays-News-7-184650-Allocation-in-budget-for-education-negates-PTI%E2%80%99s-claim

    Recommend

  • Jun 20, 2013 - 12:22AM

    Well Done Jamaat e Islami

    Recommend

  • shafqat ullah
    Jun 20, 2013 - 8:44PM

    the budget launched by PTI (made by asad umar) trough siraj-ul-haq is realy historical for kpk.
    espacialy of education (more spacial of women) ,health and public safety is stickly reject the expirence of pmln and ppp. because education is most prominent weapon against poverty, terrorism , and lake of knowledge.
    also the fedral gov`t progress about youth in budget is to some extent the completion of imran khan words

    Recommend

  • Jun 23, 2013 - 8:12PM

    Plus point is higher perentage allocation for education but negative point is tax collection is only 4% of revenue generation there has to be more taxes on richer peoploe, specially agriculture tax which is a provincial subject.
    there should be a transparent mechanism and method to allocate budget money fairly among all districts so district budgets can be made and money is spent directly by district govts.

    Recommend

  • Jun 23, 2013 - 8:20PM

    @Amer:
    I would like this aid money to be even higher, It is not against PTI manifesto.
    just like Pakistani’s in one american state sponsored one PTI NA candidate, for election expense, I would recomend to PTI to launch a movement in USA assign one district of KPK to pakistanis living in one state of USA for funding for various projects

    Recommend

More in KP & FATA