Rs505 billion budget for the financial year 2016-17
Rs161bn for the annual development programme (ADP), including Rs36bn foreign assistance
Budget’s outlay is Rs17.12bn or three per cent higher than that of outgoing year’s Rs487.88bn.
Province faced a revenue shortfall of Rs56.64bn in the outgoing year as it generated Rs431.24bn against a target of Rs487.88bn
Slashing the outgoing ADP to Rs135bn from estimated Rs174bn.
The government’s current expenditures have been pitched at Rs344bn, up by 10pc, from Rs313bn set for the outgoing year.
The budget has set aside Rs344bn for administrative expenditures and Rs161bn for the ADP. The current revenue expenditures have been pitched at Rs333bn.
An amount of Rs222bn has been set aside for general public services,
Rs15.091bn for defence affairs and services,
Rs41.96bn for public order and safety,
Rs18.341bn for economic affairs,
Rs890 million for environment protection,
Rs4.3bn for housing and community amenities,
Rs19.6bn for health, Rs1bn for recreation, culture and religion,
Rs19.520bn for education affairs and services and
Rs5.94bn for social protection.
Federal transfers under the National Finance Commission (NFC) award to the tune of Rs346.146bn will make for about 68pc of the province’s revenue. The province is also slated to get Rs33.704bn in lieu of net hydel profit proceeds and its arrears.
An amount of Rs49.507bn will be raised from the province’s own tax and non-tax revenue and
Rs75.605bn from foreign aid and other sources.
The province’s own tax and non-tax receipts target at Rs49.507bn (unrealistic and speculative projections, including generation of Rs12.70bn from commercial use of state land.)
In the outgoing year, the finance department managed to receive over Rs25.48bn against a target of Rs54.42bn in lieu of province’s own tax and non-tax revenue.
The proposed development expenditure of Rs161bn will be 8pc less than that of the outgoing year.
It envisages core development component of Rs91.1bn, while Rs339bn will go to the districts for development initiatives.
The province is set to receive Rs36bn for foreign-funded development projects. KP will also make internal borrowing to the tune of Rs12.20bn to ensure financing for various ADP projects.
The finance minister announced a 10pc increase in salary of government employees, while setting the minimum wage at Rs14,000. Pensioners will also get a 10pc hike from July 1, while those over 85 years of age will be entitled to a 25pc increase in their pension.
Government had also approved the construction of Swat expressway under public-private partnership with an estimated cost of Rs34bn and was also planning to introduce 100 air-conditioned buses in Peshawar by the end of this year. The 23km rapid bus transit for Peshawar costing Rs20bn will be completed by Dec 2017 and 250 million trees will be planted under the Billion Tree Tsunami Programme.