PESHAWAR, June 16: NWFP Finance Minister Mohammad Humayun Khan on Monday presented a tax-free budget of Rs107.904 billion containing a surplus of Rs345.561 million for the coming financial year.

The minister also announced a 20 per cent increase in the basic salary and pensions of government employees.

The total revenue included general revenue receipts of Rs100.089 billion, general capital receipts of Rs400 million, development receipts of Rs13.179 billion and general capital receipts (food) of Rs57.237 billion.

The minister said that the government “expects an expenditure of Rs170.559 billion, including current revenue expenditure of Rs67.3 billion, current capital expenditure of Rs4.477 billion, developmental expenditure of Rs41.545 billion and capital expenditure (food) of Rs57.237 billion.

He said the government would receive Rs59.684 in the province’s share in federal taxes.

“An income of Rs7.332 billion is expected from the collection of general sales tax (GST) and expects to earn Rs6 billion in net hydel profits.” “The province will get a grant of Rs14 billion and Rs4.429 billion in royalties on crude oil and natural gas and Rs767 million in GST on services.”

Humayun Khan said the next year’s allocation for current expenditure amounted to Rs67.3 billion, which included Rs40 billion for payment of salary while the remaining amount was for other heads, including mark up on loans, subsidy on wheat and other expenses.

The minister said: “This province is confronted with problems like price hike, food shortage, electricity crisis and the deteriorating law and order situation. The government’s first priority is to resolve these problems.”

The government had signed an agreement with Taliban in Swat that led to the establishment of a peaceful environment in the province, he observed.

HYDEL PROFITS: The minister said that according to an arbitration tribunal, Wapda owed the province Rs110 billion in net hydel profits, but the government wanted to resolve the issue with the federal government through mutual understanding.

He expressed a hope that all political forces would support the government on the issue.

About next year’s fiscal measures, he said the government “has allocated Rs21.72 billion for the education sector”, which was 10.2 per cent more than the revised estimates and also included allocation for district government.

“Rs6.426 billion has been allocated for the health sector, 10 per cent above the revised estimates. The government has created 975 new vacancies in the sector.”

About Rs500 million has been allocated for the agriculture sector, 20 per cent above the revised estimates, and Rs825 million for infrastructure development, 37.5 per cent more than the current allocations.

He said Rs5.777 had been allocated for pensions.

Humayun Khan said in the next ADP, the government had focused on completion of ongoing projects, improvement of education, health, irrigation and agriculture sectors, creation of employment opportunities, improvement of inter-district and pan-district infrastructure, broadening of industrial sector, enhancement of private investment and controlling poverty.

The minister said the total volume of the next year’s Annual Development Programme was Rs41.545 billion, 5.37 per cent more than the previous year’s ADP.

The provincial government’s share in the ADP amounted to Rs27.148 billion, 23.7 per cent more than last year’s estimates. He said external funding of Rs4.617 billion was also included in the ADP.

He said: “This year’s ADP includes 901 schemes, 604 ongoing and 297 new ones.” The minister said none of the ongoing project had been abandoned.

He said Rs8.094 billion had been allocated for 61 schemes identified under the head of special programmes. He said Rs1.218 billion had also been allocated for the district development programme.

He said the government had allocated 43.05 per cent of the funds at its disposal for social sector, of which health sector allocations were 14.51 per cent, 20.29 per cent for education, 4.56 per cent for the Tameer-i-Sarhad Programme and 3.68 per cent for provision of water. Of the total funds, 16.48 per cent were allocated for roads, 2.95 per cent for construction and housing, 4.7 per cent for irrigation, 2.63 per cent for agriculture, 1.76 per cent for forests, 4.2 per cent for industry and 19.6 per cent for regional development.

The federal government’s development programme for the NWFP included Rs8.094 billion for 61 schemes in 21 sectors.

He said for poverty alleviation, the government had allocated Rs1 billion.

Besides establishing the Imam Dheri Islamic University in Swat, the government will set up Medical College in Mardan, 20 new colleges across the province, four cadet colleges and 300 new schools. “Rs5.507 billion has been allocated for 88 schemes in the education sector, included 57 ongoing and 31 new ones.” He said monthly scholarships of Rs200 would be provided to female students (Class VI to Class X) in all districts.

He said 2,500 teachers would be trained, 200 new primary schools would be constructed, while 100 existing primary schools would be upgraded to middle and 100 middle schools to higher secondary level. He said 20 new colleges would be established.

He said Rs3.94 billion had been allocated for chronic and infectious diseases in the ADP.

He said a 500-bed Benazir Bhutto Shaheed Hospital would be established in Peshawar.

“Ten dispensaries will be upgraded to Basic Health Unit (BHU) level and 10 BHUs to a rural health centres (RHC) and 10 RHCs to be upgraded to category-D hospitals. Separate hospitals will be established for cardio-thoracic diseases and ambulances and 200-KVA generators will be purchased for hospitals in the province.”

He said scholarships of Rs1,000 would be provided to 1,800 senior citizens and Rs2,000 stipend to 1,200 unemployed postgraduates.

The existing school for the blind in Peshawar would be rebuilt and upgraded, a child welfare and protection bureau would be established, land would be purchased in earthquake-hit areas of Mansehra, Shangla, Battagram and Kohistan for social welfare complexes and women development centres.

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