K-P to unveil Rs462b budget for four months
PHOTO: FILE
The caretaker government of Khyber-Pakhtunkhwa (K-P) has prepared a Rs1,400 billion budget for fiscal year 2023-24, out of which the expenditures of over Rs462 billion for the next four months will be unveiled on Tuesday (today).
The caretaker cabinet will meet on Tuesday morning to approve the partial budget for July-October 2023 because of the absence of the provincial assembly. The cabinet will also sanction an Annual Development Programme for July-October 2023 period.
A proposal to extend the tax exemption to former Federally-Administered Tribal Areas (Fata) for another two years was also under consideration and the final decision in this regard will be taken by the cabinet.
Caretaker Finance Minister Himayatullah Khan will address a press conference in the evening to unveil the budget expenditure for the next four months. It is learnt that outlay of the four-month budget will be Rs462.160 billion.
No new tax has been imposed in the budget, while the tax rate introduced by the previous Pakistan Tehreek-e-Insaf (PTI) government will continue without any change. However, there will be a ban on recruitment and the purchase of new vehicles.
The minister is expected to announce an increase in the salaries of the government employees. The increase will be 35% for the employees in grades 1 to 16, and 30% for those in grades 17 and above. Similarly, pensions are also expected to rise by 17.5%.
The other budgetary proposals include a 100% increase in the conveyance allowance of disabled employees; 50% raise in the deputation allowance; 100% raise in the secretariat performance allowance. The ration allowance of police will also be increased.
The minimum monthly wage to be fixed at Rs32,000. The budgetary proposals also include the allocation of Rs1 billion for subsidy to the Bus Rapid Transit (BRT) project, it has further been learnt.
For the next financial year, the provincial government is expected to receive 871 billion rupees from the Centre, including Rs84 billion in the net hydel profits and arrears, Rs90 billion for the war against terrorism and Rs85 billion from taxes and others.
The receivables from foreign sources – for the purpose of development works during the next financial year – are expected to be Rs93 billion. Another Rs270 billion is expected for the development of ex-Fata from the National Finance Commission (NFC).
The caretaker government also intends to withdraw exemption of property tax on houses up to 5 marla, which was given in the current fiscal year’s finance bill. It proposed that all houses of 3 or more marlas will be subjected to the property tax.
Government buildings and all places of worship will be exempted from the property tax.
However, those government buildings which are leased for profit will be subjected to property tax on the basis of annual rent.
Published in The Express Tribune, June 20th, 2023.