Budget to have Rs100b IMF-mandated surplus
PHOTO: FILE
The Khyber-Pakhtunkhwa government will present Rs1,700 billion budget in the provincial assembly today (Friday) for fiscal year 2024-25.
The budget will have a Rs100 billion surplus as required under an arrangement with the IMF.
In the new fiscal budget around Rs300 billion have been allocated for the Annual Development Plan. A 15 per cent increase in government employees’ salaries and a 10 per cent raise in pensions are proposed.
Various taxes on land transfer will be reduced from six per cent to three per cent to provide relief to the general public. Additionally, Rs10 billion is earmarked for youth schemes and employment. The budget proposes eliminating non-essential projects and vacancies for three years.
Health Card funding will receive Rs28 billion, with reforms planned. The Peshawar Rapid Transit (BRT) subsidy will be decreased from Rs5 billion to Rs2.5 billion per annum, accompanied by a fare increase.
Lastly, road infrastructure development tax and excise duty on tobacco will be imposed.
Provincial Finance Minister Aftab Alam will present the budget for the new fiscal year 2024-25 of Khyber-Pakhtunkhwa in provincial assembly today (Friday).
According to sources, total size of budget has been kept at more than Rs1,700 billion. Around Rs300 billion funds have been allocated for development in the budget. It has been recommended to allocate Rs103.68 billion for the settled districts of the province and more than Rs26 billion for the development program of the merged districts.
It has been proposed to allocate more than Rs130.58 billion with the support of international financial organizations. It has also been proposed to provide utility allowances for the secretariat employees in the budget.
In the budget, Rs28 billion will be allocated for health card, Rs25.93 billion for local governments, there is a possibility of a 30 per cent increase in the education budget.
It has been decided to reduce subsidy of the BRT bus service which was started during the Pakistan Tehreek-e-Insaaf regime from Rs5 billion to Rs2.5 billion.
Whereas an increase of Rs10 to Rs15 has been suggested in BRT fares to meet the shortfall. In the budget, various taxes on land transfer have been proposed to be reduced from six per cent to three per cent in a major relief to the general public. It has also been proposed to levy excise duty for the first time on companies buying tobacco in the province.
According to the sources, the government is proposing to cut down on unnecessary projects, which will bring the through-forward to Rs4 billion. The budget proposes to allocate 90 per cent of the funds for ongoing projects instead of new projects in the development fund.
A loan scheme is being launched for the youth on easy terms for as more than Rs10 billion is proposed to be allocated for it.
Published in The Express Tribune, May 24th, 2024.