Khyber-Pakhtunkhwa to unveil Rs300b budget

PESHAWAR: The Khyber-Pakhtunkhwa government is likely to present a tax-free budget of approximately Rs300 billion for the financial year 2010-11 with a 40 per cent increase in the Annual Development Programme (ADP) of the province.

“The budget will be presented in the provincial assembly on Saturday,” Provincial Minister for Finance Engineer Muhammad Hamayun Khan told APP.

“Under the 7th National Finance Commission (NFC) Award, Khyber-Pakhtunkhwa’s share in federal resources has been increased and the outlay of the budget is likely to be around Rs300 billion,” said the minister.

Khan said a huge chunk of the developmental budget would focus on the uplift of the social sector with provision of health and education sector facilities to the people being top priorities. He said development of infrastructure was also a priority of the provincial government.

Finance Minister Khan said the government was making efforts to create more employment opportunities and come out with a people-friendly budget.

Regarding increase in resources of the province, he said that under the 7th NFC award Khyber-Pakhtunkhwa’s share in the federal divisible pool has been increased and the province would now receive 14.62 per cent of the federal resources.

Similarly, he said an amount of Rs15 billion would also be paid from the undivided divisible pool under the head of expenses incurred on counter-terror operations.

Asked about the revival of the industrial sector, he said that before the budget the provincial government had consulted the business community and their input had also been incorporated in the budget document. However, he said Prime Minister Yousaf Raza Gilani has already announced a package for the economic revival of the province.

The minister said provincial resources would be utilised for exploitation of the hydropower potential of the province. He said production of hydropower would not only help overcome the prevailing energy crisis, but would also create permanent means of revenue for the province.

He said a handsome amount would be sanctioned for the the hydropower generation sector. He said some schemes in this regard had already been approved, while feasibility studies of some projects was underway.

“Energy and power is an important sector and its development is important for the province,” he said. He said the provincial government would receive the first instalment of Rs25 billion under the head of net hydel profit in first week of the next financial year.

He said the provincial government was taking keen interest in the reconstruction and rehabilitation of the areas affected by militancy in Malakand Division. In this regard, he was hopeful that the federal government and donor agencies would extend cooperation to the provincial government.

Quizzed about the burden of the 50 per cent increase in the salaries of government employees, the minister said the matter was under consideration at the provincial level.

Published in the Express Tribune, June 10^th, 2010.