Revisiting priorities: AJK council approves Rs9b budget for 2010-11

Spending to focus more on development than non-development projects.

ISLAMABAD: The Azad Jammu and Kashmir (AJK) council has approved its budget for fiscal year 2010-2011, with a total outlay of Rs9.007 billion.

Of the total budget, the estimated development expenditure stands at Rs2.2 billion while non-development expenditure is estimated to be Rs870.53 million.

Federal Minister for Kashmir and Gilgit-Baltistan Affairs Mian Manzoor Ahmed Wattoo presented the budget before the council. In his budget speech, he presented a comprehensive account of the previous year’s fiscal performance, including budget estimates and achieved targets.

According to Wattoo, the total budgeted revenue was Rs6.75 billion and estimated income tax revenue was Rs3.85 billion. However, he said, the actual amount exceeded the estimate as Rs5.35 billion were collected in income tax. “This was a result of the professional approach and dedicated efforts of the AJK Council’s board of revenue and income tax department’s field staff,” he said.

He said that the revenue targets for Sales Tax, Federal Excise Duty and other taxes, which are budgeted by the AJK government, were Rs2.3 billion and actual receipts were Rs2.4 billion. The proceeds are sent to the AJK government.

He said that the revenue target for this year is Rs5.8 billion, while total expenditure is estimated to be Rs9 billion. Hence, there is a shortfall of Rs3.2 billion in revenue against expenditure. “This will be tackled by adopting austerity measures during the year and disinvesting invested funds,” he said.

Comparing the previous year’s budget to the current budget, Wattoo said that this year’s non-development budget is 10 per cent of the total budget whereas, last year, it was12 per cent. The AJK government will receive 66 per cent of the total budget, which is an increase of 50 per cent over last year.

He said that the AJK council members’ development programme is proposed at Rs338 million (Rs28 million per member) and block provision proposed for the year is Rs100 million, which will cover unforeseen expenditure.

The council also proposed an increase in pensions and adhoc allowance along the same lines as the amount paid to the pensioners and employees of the government of Pakistan, with effect from July 1, 2010.

Published in The Express Tribune, December 21^st, 2010.