RECORDER REPORT

PESHAWAR: Khyber Pakhtunkhwa Minister for Finance, Muzaffar Said advocate on Thursday termed the provincial annual budget for financial year 2017-18 as balanced and pro-poor wherein all segments of society including government employees and pensioners have been given maximum relief.

Addressing a post budget press conference, the minister said government has distributed the budget in three major sectors like development, welfare and administration to ensure strict financial discipline besides expediting pace of economic development in the province.

The provincial government has proposed allocation of Rs.336.67 billion for welfare which makes up 56 percent of the total budget volume of Rs.603 billion 14 percent higher than the current fiscal year.

Similarly, the finance minister said Rs.58.73 billion proposed for administrative purposes in the budget 2017-18, carrying an increase of 18 percent against current fiscal year.

He said special focus has been put on developmental budget for which a huge allocation of Rs.208 billion has been made, which is 34 percent of the total budget 2017-18 with major focus on uplift of social sectors, completion of ongoing projects and starting new schemes.

He said ADP of upcoming budget was 29 pc higher than current fiscal year including foreign assistance of Rs.82 billion. As many as Rs.127.91 billion were allocated for education, Rs.49.27 billion for health and Rs.39.73 billion for police departments in budget 2017-18, he said, adding the government has set aside Rs.127.91 billion including Rs.115.92 billion for elementary and secondary education, Rs.11.99 billion for higher education sector that was 18 percent higher than that of the current financial year.

Furthermore, as many as Rs.49.27 billion were earmarked for health sector with 31 percent increase against current fiscal year besides an allocation of Rs.1.85 billion carrying an increase of 7 percent against current fiscal year for women development and social welfare sectors.

The Minister said Rs.2.25 billion for Technical Education and Human Resource Development, Rs.720 million for sports, culture and tourism, Rs.4.35 billion for agriculture, Rs.2.37 billion for environment and forests department, Rs.6.61 billion for communication and works sectors, Rs.53 billion for pension and Rs.2.90 billion for subsidy in wheat were earmarked in the upcoming budget.

The provincial government in its budget for next financial year has also allocated Rs.8 billion for payment of mark up on loans besides Rs.7 billion for the retirement of domestic and foreign loans, house building for the government employees and motorcycle advances.

He said Rs.126 billion were allocated for Provincial Development Program to complete 1632 projects including 1182 ongoing and 450 new schemes in budget 2017-18. Despite limited financial resources, he said, the government has provided maximum financial relief to government employees and pensioners by increasing their salaries and pensions by 10 percent after merger of Adhoc Relief Allowance of 2010.

“The government has decided to merge the ad hoc relief allowance granted in 2010 in basic salaries and after its merger 10 percent ad hoc relief allowance 2017 would be given to government employees,” added the minister.

The Minister said the Government would bear an extra burden of Rs.16.50 billion due to increase in pensions and salaries of the government employees.

The employees of BPS-5 are being exempted from reduction in 5 percent house rent allowance and proposed increase in rate of daily allowance by 60 percent while Ardali (Orderly Peon/messenger) allowance from Rs.12000 to Rs14000.

The existing financial assistance for shifting and burial of deceased is being enhanced from Rs. 1600 to Rs.4800 and from Rs.5000 to Rs.15000 respectively, he said adding minimum wage is being increased from Rs.14000 to Rs.15000.

The Minister said PTI led government has transferred Rs.48 billion to district governments in last two years and a huge amount of Rs.28 billion were allocated for district governments in budget 2017-18. He said revenue resources of KP were limited and the government was making efforts to enhance its revenue.

The Finance Minister KP claimed that the world donor agencies like the World Bank and UNDP have appreciated efforts of KP Government for promoting trade and investment activities in the province as well as bringing economic stability and reforms in the social sectors making it more result oriented.

He maintained, “we have taken various measures to tap the potential natural resources like hydel power, exploration of oil and gas and forests to make the province self reliant through the natural resources of the province.”

The finance minister said that human resource development is top priority of their coalition government, making in time legislation and reforms to remove lacunas from the existing laws, introducing system of reward and punishment to eliminate corruption from government organizations and encouraging good work.

He further claimed that KP government has introduced exemplary reforms in education, health, rural development and policing for the benefit of people.

The present KP Government, he added, has successfully changed the slogan “Badlay Ga Khyber Pakhtunkhwa (KP will change),” to “Badal Gaya Khyber Pakhtunkhwa (KP has Changed)” due to our four years in government.

The Minister said 80 percent of the budget has been allocated for health, education, law and order sectors of the total outlay. Mega Greater Circular Railway Project and Rapid Transit Bus projects would be completed next year for which arrangements have been finalized with donor agencies.

He said 81 percent of the development program has been proposed for ongoing schemes and 19 percent for the newly launched projects in budget 2017-18.

He maintained that province’s own receipts were meager and making slight upward readjustments in it were unavoidable. The government is fully aware of the people’s problems and did not want to put more burden on them in the shape of new taxes.

The government proposes slight increase in the UIP (Urban Immovable Property) tax on five Marla houses occupied by the tenants. The self occupied house of five Marla will remain exempted from the UIP tax.

The provincial minister said a new service has been incorporated in the sales tax schedule named ‘Ride Hailing Service’. Similarly, upward revision has been proposed in stage carriage route permit, goods forwarding agency, body building license fee and fitness fee.

An adjustment in restaurants, hotel registration and licence fee for the tourism department has also been proposed in budget 2017-18.

Responding to a question, the minister dispelled the impression of deficit budget, saying that the revenue receipts and expenditures have pitched at Rs. 603 billion. He expressed confidence that the province would receive the revenue receipts as projected in the budget documents.