K-P unveils Rs1,332 billion balanced budget

Employees get 16% pay rise; pensions up 15%; ex-Fata receives Rs223b; development outlay pegged at Rs418b

PESHAWAR:

The Khyber-Pakhtunkhwa (K-P) government presented on Monday a balanced budget with the total outlay of Rs1,332 billion for the next financial year 2022-23, allocating Rs418 billion for various development schemes in the province.

Presenting the budget in the provincial assembly, Finance Minister Taimur Salim Jhagra said that the province’s total receipts during 2022-23 had been estimated at Rs1,332 billion, while the volume of the current budget was Rs913.8 billion.

The receipts included Rs750.9 billion from the federal taxes receipts and Rs68.6 billion as 1% share in divisible pool on the war on terror. The current budget included Rs789.8 billion for settled districts and Rs124 billion for the merged tribal districts.

Jhagra said that the total development budget was Rs418.2 billion, including Rs319.2 billion for settled districts and Rs99 billion for the merged tribal districts. Overall, Rs1108.9 billion had been allocated for the settled districts and Rs223.1 billion for the merged tribal districts.

In the budget, the government increased the salaries of all government employees by 16% and pensions by 15%. Besides, the minister announced that the services of 63,000 employees would be regularised during the next financial year.

Jhagra said that Rs447.9 billion would be spent on salaries, including Rs372.1 billion in the settled districts and Rs75.8 billion in merged tribal districts while Rs107 billion on pension—Rs106 billion in settled districts and Rs1 billion in merged tribal districts.

The government would spend Rs10 billion on the provision of free medicines to the people. From January 2022, treatment for five more diseases, including liver transplantation, had been added to the health card facility, the minister told the house.

Rs1 billion will be spent through the Insaf Education Card, while Rs26 billion had been allocated under the Insaf Food Card to provide rations at subsidised rates to 1 million families. Under the scheme, each family would be given Rs2,100 per month.

The government also introduced in the new budget reforms to reduce expenditure on petrol. The government had decided to introduce flat cards to the government employees and departments to avoid reckless use of petrol.

During the next financial year, the province would receive Rs570 billion from the federal tax receipts, including Rs68.6 billion in connection with the war against terrorism, Rs31 billion in direct transfers.

Under foreign assistance programme, Rs93.2 billion would be spent, including Rs88.9 billion in settled districts and Rs4.3 billion in the merged tribal districts, while Rs8.3 billion would be received through Public Sector Development Programme for settled districts.

The minister said Rs26,458 million would be spent on agriculture, Rs4191 on Auqaf, Rs73 million on Bureau of Statistics, Rs71,653 million on communication and works, Rs227,087 million on education, Rs29203 million on energy and Rs4191 million on environment.

The government decided to maintain last year’s reduced tax rates for the next financial year, while no fee would be charged from students in primary and secondary education. Library and archives and hostel fees had been abolished for the next financial year.

According to the Finance Bill-2022, the fee for affidavit had been increased from Rs100 to Rs150. The government brought some changes in the levies on immovable properties. Also, the rate of surcharge on agricultural income tax had been increased.

Meanwhile, the Khyber Pakhtunkhwa Public Financial Management Bill was also introduced by the provincial government under which the budget strategy would be formulated on the last day of February every year on the basis of which the next budget would be prepared.

The strategy would cover all the issues related to the budget. Accordingly, funds would be adjusted annually by the principal accounting officer by May 31 and all departments would surrender the surplus or unspent funds to the Finance Department by June 15 each year.

(WITH INPUT FROM APP)

Published in The Express Tribune, June 14^th, 2022.