KPK unveils Rs303 bln budget for 2012-13
June 08, 2012
Presenting the budget in the Assembly, Provincial Finance Minister Engr. Humayun Khan said that the KP budget 2012-13 is balanced as the total expenditures for the next fiscal as against the expected total revenue receipts stood at Rs303 billion.
Giving details of the revenue receipts to be obtained during 2012-13, the Finance Minister said the province would receive Rs183.68 billion from federal taxes showing an increase of 2 percent over the outgoing fiscal 2011-12.
Similarly the province would get Rs22.7 billion as expenditure incurred during war on terror in the province. The royalty on oil and gas generated in southern districts of the province amounted to Rs22.15 billion showing 60 percent increase as compared to current fiscal year.
The province expected to secure Rs9.88 billion from General Sales Tax on services while provincial own receipt stood at Rs7 .81 billion.
Rs6 billion would be paid to the province under the head of net hydel profit and Rs25 billion as arrears on net hydel profit.
The province is expected to generate Rs2.40 billon from its own hydel power stations in 2012-13.
Other miscellaneous resources will help generate Rs470 million while Rs23.25 billion would be obtained from the Foreign Projects Assistance head.
Finance Minister Engineer Humayun Khan said, Rs191.60 billion have been earmarked for current revenue expenditures which is 29 percent more than the 2011-12 fiscal year.
He said Rs10.33 billion have been allocated for health sector, Rs6.7 billion for education, Rs23.35 billion for the police, Rs2.79 billion for Irrigation, Rs1.73 billion for technical education and Manpower, Rs1.213 billion for agriculture, Rs1.11 billion for Environment, Rs2.45 billion for Communication, Rs21.58 billion for pension and Rs83.83 billion for district governments.
The government would provide Rs2.50 billion for subsidy on wheat and Rs9.56 billion for mark up on loans, the minister added.
He pointed out the record Rs97.45 billion annual development plan including Rs23 billion foreign assistance projects to be completed in the next fiscal year.
He explained that when the present coalition government came into power in 2008, the size of the ADP was Rs28.36 billion while the province was confronted with numerous challenges including security.
'We set our development priorities and formulated a comprehensive development and economic growth strategies. Under these strategies, we initiated development program and today the province's development outlay increased by 162 percent during last four years.'
The finance minister said that development process in the province began with announcement of 7th NFC award, adding the credit goes to the present coalition government which gave new direction to the resources distribution formula among the province as previously population was used to be the bench mark for the resource distribution.
'We made backwardness and poverty factors part of the resource distribution formula and 7th award was a testimony to this fact. The provincial share under the 7th NFC award rose to 57.5 percent from 47.5 percent.'
The provincial autonomy, he said also increased our financial and administrative responsibilities and enable us to have rights over our resources.
Finance Minister, Engineer Humayun Khan said despite tremendous pressure on the provincial economy, the KP Government keeping in view the financial difficulties of the government employees, is pleased to announce 20 percent adhoc relief in salaries and pension of the employees effective from July 2012.
'The adhoc relief would cost Rs15bn to the provincial kitty.'
The minister said, unanimous passage of the 18th constitutional amendment from the parliament was success of the democratic forces and similarly holding transparent senate elections in March 2012 also speaks of government's respect and regard for the democracy.
He paid tribute to President Asif Ali Zardari, Prime Minister Syed Yusuf Raza Gilani, President of ANP Asfandyar Wali Khan and Chief Minister KP Amir Haider Khan Hoti for successful holding of the senate polls.
He also enumerated achievements of his government regarding settlement of net hydel profit issue with the federal government and added that the government succeeded in implementing decision on Rs110 billion hydel profit arrears as per verdict of the Arbitration Tribunal and thanked the political leadership of the province for their support and encouragement in this regard.
He however said the KPK government also made progress in making some improvement in the annual payment of net hydel profit.
The finance minister said the KPK team also succeeded in incorporating amendments in oil and gas policy 2012 resultantly the province's right over its natural resources was not only accepted but receipts under the petroleum products also registered upward growth.
Humayun Khan said that for provision of relief to the people in cases of emergency, Rescue 1122 has been setup and its performance remained satisfactory and due to people's positive response adding the Rescue 1122 was also setup in Mardan district.
He informed that in coming fiscal year its branches would also be opened in Mingora, Abbotabad, Kohat, Bannu and DIKhan. It would also be opened in the remaining districts in phase wise, he told the assembly.
He said great input has been obtained from the elected reps, intellectuals, journalists, NGOs and civil society members in the budget prepartions and held series of pre budget seminars in Mardan, Peshawar and Abbotabad attended by people from all walks of life.
Finance Minister, Engineer Humayun Khan said, in 2011-12, the current revenue expenditures were Rs149 billion which rose to Rs161 billion in revised estimates listing the rise in salaries, pension, and devolution of departments under 18th Amendment, extension in contract period of retired army personnel in special police force as the main reasons in this regard.
During 2011-12, a total of 6902 posts were created of which 4957 at district level and 1954 at provincial level. Similarly 3814 posts were created at district level for primary schools, up-gradation of primary to middle and high schools.
He informed that Rs16.11 billion were allocated for completion of house projects with foreign assistance.
He maintained that promotion of education remained priority of the coalition government as Rs12.6 billion were allocated for completion of 96 projects in education sector and added 10 high schools were up graded to the level of Higher Secondary school and 70 middle schools to High Schools.
'As many as 130 new primary schools were established besides providing necessary facilities in 350 primary schools. As many as 492000 students were provided text books free of cost, he said and added that 30 secondary schools were renovated besides construction of 700 rooms in primary, middle and secondary schools across the province.'
'Moreover, seven girls' colleges and five new degree colleges were also setup in the current fiscal.'
In health sector, he said, Rs6.75 billion were allocated for completion of 122 health schemes in 2011-12. District hospitals at D.I Khan, Tank and Charsadda were completed.
'Various projects of bridges and highways with local and foreign assistance were initiated in 2011-12 of which many have been completed while few are near completion, he said and added that in all Rs12.72 billion were earmarked for 134 communication sector projects in 2011-12 including construction and widening of 419 kilometers road and 114 bridges.'
To lessen traffic load in Peshawar, he said various projects were underway.
Finance Minister Engineer Humayun Khan in his budget speech said Bank of Khyber (BoK) was the only financial institution of the government which made remarkable progress during 2011-12 due to its prudent policies, patronage of the KP government and apolitical attitude.
'The total assets of the Bank rose to Rs68 billion from Rs50 billion showing 36 percent upward trend.'
Advances of the Bank rose to Rs22 billion from Rs18 billion which is 22 percent higher. Similarly deposits also registered upward growth from Rs36 billion to Rs45 billion, indicating 25 percent increase, he added.
'The net profit of BoK after deduction of tax, stood at Rs872 million which is 44 percent more than the previous year. Remittances of the bank increased by 57 percent which is a record as it jumped to Rs12.83 billion from Rs 8.17.'
He said that Rs 1.52 billion were provided to districts for development and Rs2.73 billion were given to the MPAs under Tameer Khyber Pakthunkhwa program.
He said 914 small and big clean drinking water and sanitation projects were completed in the outgoing fiscal year at a cost of Rs3.66 billion while a mega sanitation project in Nowshera district was also completed.
In hydel sector, he said during the current fiscal, Dral Khwar Hydel Project having 36 megawatt capacity has been undertaken besides starting work on preparing feasibility report of 13 new projects.
'Rs5.8 billion were earmarked for irrigation sector for completion of various projects.'
'New housing projects for government employees have been started in Kohat, Abbotabad and Peshawar. Similarly in agriculture sector, Rs91.73 billion were allocated for completion of 71 schemes.'
'The organization Lissail- e- wal Mahroom provided free of cost treatment to 204 cancer, 2285 eye and 500 kidney patients besides arranging 329 medical camps wherein 89000 patients benefited.'
