PESHAWAR: Amid an unprecedented move, to go a step ahead of the federal government. Khyber Pakhtunkhwa (KP) Minister for Finance Aftab Alam presented Rs 1754billion annual budget for the fiscal year 2024-25, with a surplus of Rs 100 billion here at KP assembly on Friday.
During his budget speech, the minister said that, the provincial government has projected Rs 1,654 billion expenses, adding that as per the instructions of the CM KP Ali Ameen Gandapur, the budget 2024-25 mainly covered social protection, peace, employment opportunities, and economic development.
Along with raising the minimum wage from Rs 32000 to 36000, the Budget has proposed an increase of 10 percent in both salaries and pension of the government employees.
The provincial finance minister further stated that the KP government anticipated to receive a total 1754 billion under different heads during the fiscal year 2024-25 including 1212.036 billion from the federal government.
He apprised that the province considerably improved its income during last few years and had chalked out a mobilization plan while fixing a target of achieving Rs 93.5 billion revenue for the fiscal year 2024-25.
Meanwhile, Rs 31.55 billion would be accumulated from other receipts, Rs259.92bn from merged districts, Rs 130.59billion from foreign projects assistance and Rs 26.41bn from development and non-development grants under PSDP.
Decreasing Taxing in Budget
The minister further said that the provincial government has decided to improve the tax net instead of increasing the taxes whereas, a number of tax have been taken, including reforms in sales tax, property tax, tobacco tax, cess and other taxes.
The government has decreased the sales tax ratio on different online services in the budget, adding that the tax has minimized on hotels from eight percent to six percent and bound the hotels to use Restaurant Invoice Management System. Similarly, a fixed sales tax rate has been proposed to be placed over wedding halls.
Regarding relief over the property tax the minister said that the relevant tax would be reduced on per kanal for factories from Rs 13600 to 10,000. The tax on commercial property which was 16 percent of the monthly rent previously has been brought down to 10 percent and five percent for private hospitals, medical stores and other businesses related to the health sector.
Taxing Tobacco
The provincial minister further stated that the government proposed to increase tobacco development cess to increase income on the production of tobacco, he said and informed the house that the government has reduced provincial tax from 6.5 percent to 3.5 percent on transfer of properties.
Education Sector
The provincial minister said that the government has reserved Rs 362.7 billion for the education sector comprising Rs 35.8billion for higher education and Rs 326.9billion for elementary and secondary education.
Ehsas Program
The provincial budget also included allocation of Rs 12billion for Ehsas Noujawan Program, Ehsas Rozgar program and Ehsas Hunar program to provide opportunities to about 100,000 youth in the province.
Meanwhile, Rs 10billion has been allocated for Chashma Right Bank Canal (Lift-Cum-Gravity) project to bring 300,000 acre of barren land under cultivation to counter food security issue, whereas Rs 228.8billion has been allocated for the health sector.
Infrastructure
Regarding infrastructure, the minister said that Rs 140.6 billion has been allocated for peace related efforts whereas Rs 60.5billion earmarked for roads and infrastructure while Rs 8.1billion for social welfare. Similarly, Rs two billion for kept for mineral, Rs 7.5 billion for industry and commerce, Rs 9.6billion for tourism, Rs 28.6 billion for agriculture, and Rs 30.8billion allocated for energy sector.
Meanwhile, Rs10 billion were allocated for CRBC Lift Canal to irrigate three lakh acres lands, launching of Tank, Chodran and Daraban dams, allocation of Rs26.90 billion for wheat procurement, Rs6.50 billion for construction of roads, Rs 2.50 billion for emergency works, construction of Dir and DI Khan Motorway under public private partnership mode, construction of road to link DI Khan with Hakla Motorway and 470 megawatt Lower Spat Gah project.
The budget maintained about the current expenditure for the settled districts for the fiscal year 2024-25 worth Rs 1093.087 billion including provincial salaries, Health MTIs’ salary budget, Tehsil Salary, pension and non-salary expenditures of health MTIs, Tehsil, capital expenditure and ways and means.
The government has allocated Rs 416.30 billion for development expenditures for settled and merged districts including Rs 120 billion for Provincial Annual Development Program, Rs 24 billion for district annual development program, Rs 36 billion for merged districts annual development program, Rs 79.29 billion for Accelerated Implementation program (AIP), Rs 130.59billion for foreign project assistance and Rs 26.41 billion for federal PSDP.
Housing Scheme
The minister said that about 5000 new houses would be constructed under Ehsas Own House Program for which the government has allocated Rs3 billion.
Similarly, Rs7.53 billion for industries, Rs9.66 billion for tourism with a project of field heritage school and tourism helpline 1422, Rs28.93 billion for agriculture with olives project, Rs31.54 billion for energy sector with establishment of KP distribution company and launching of Batakundi-Naran hydro project to produce 235 megawatt announced in budget 2024-25.
In addition, Rs14.69 billion were allocated for livestock and Rs14.05 billion for forestry with launching of billion trees plus project.
In his speech, the minister said that the budget 2024-25 was not just a mere document but a comprehensive roadmap for development and prosperity of the province and also reflection of the government’s strong resolve to uphold social justice, gender equality.
