Year 2013-14: Rs14.48b AJK budget unveiled

The proposed Rs10.93 billion receipts target leaves a deficit of Rs3.55 billion.


Peer Muhammad November 18, 2013
The proposed Rs10.93 billion receipts target leaves a deficit of Rs3.55 billion. DESIGN: CREATIVE COMMONS

ISLAMABAD:


The Azad Jammu and Kashmir (AJK) Council on Sunday presented a deficit budget worth Rs14.483 billion for the year 2013-14. The budget was presented by Minister for Kashmir Affairs and Gilgit-Baltistan Chaudhry Barjis Tahir.


The council indicated receipts target of Rs10.932 billion, whereas the estimated expenditure is Rs14.483 billion. Thus, there is a deficit of Rs3.551 billion and the council has requested the Prime Minister of Pakistan, who is also the chairman of the council, to provide grant to meet the deficit.

The deficit includes Rs1.443 billion as liability of AJK for 2012-13 and Rs0.283 billion for 2011-12 and Rs2.202 billion as the share of AJK — 80 per cent more as compared to last year. The receipt target includes Rs10.8 million income tax collection.



The development expenditure is estimated at Rs2.628 billion, Rs712 million more than last year. The operational expenses are proposed at Rs1.54 billion. This expenditure is 19 per cent higher than that of last year’s non-development expenditure due to substantial increase in pay and allowances on the analogy of the government of Pakistan.

The budget has also imposed 30 per cent cut on operational expenditure as well as other austerity measures. The 80 per cent net share of income tax collection is proposed to be Rs8.385 billion.

For the year 2012-13, the AJK Council had approved the projected expenditure of Rs9.594 billion against the receipt of Rs8.135 billion. The deficit was proposed to be met through saving in non-development expenditure and grant-in-aid from government of Pakistan.

However, the overall actual expenditure remained at Rs8.142 billion which is Rs1.452 billion less than the proposed expenditure, which was achieved through better fiscal control and stringent austerity measures.

The AJK Council’s major source of revenue is income tax collection. The net receipts thereof are distributed between the “Government of AJK” and “AJK Council” at the ratio of 80:20.

The 80 per cent share of net collection of income tax is released to the AJK government on a monthly basis through the budget of AJK Council. The remaining 20 per cent kept by AJK Council is spent on its operational expenses relating to members, advisors, pensions, secretariat, departments/institutions working under its administrative control, as well as its development outlay.

Incentives and reliefs

Some incentives and reliefs are also proposed in the budget. These include 20 per cent grant of audit and accounts allowance, 20 per cent grant of special allowance, 10 per cent grant of premature increment as ad hoc relief allowance and 10 per cent grant of increase in pension.

Under the budget, the AJK Council secretariat has launched a merit based scholarship and stipend programme for students studying in various institutions of Pakistan and AJK. The Council intends disbursement of an amount of Rs15 million per annum in this regard.

Allocation for development sector

An amount of Rs1.915 billion was allocated for development programme during 2012-13. This included Rs265 million for the members’ development programme for rural development and uplift of deprived areas of AJK territory.

An amount of Rs1.418 billion has been proposed for ongoing projects. Most of these projects are expected to complete during the current budget year.

The AJK Council proposed a development outlay of Rs2.628 billion for the financial year 2013-14 including Rs315 million for the members’ development programme and other ongoing small and medium-sized development projects.

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

COMMENTS (3)

khan | 10 years ago | Reply

this is vol. 1 of the total 55 billion budget approved

Farooq | 10 years ago | Reply

@p r sharma: AJK budget for 2013-2014 is Rs55.68b (around 500m dollars) and it excludes GB budget. I think AJK govt presents its budget in parts http://www.ajk.gov.pk/index.php?option=com_content&view=article&id=554&Itemid=201 http://x.dawn.com/2013/06/30/rs55-billion-ajk-budget-approved/ Ajk is 16 times smaller as compared to Occupied Kashmir and is still more literate and prosperous as compared to IHC

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