The Khyber Pakhtunkhwa Assembly is set to present a surplus budget of Rs1,754 billion for the upcoming fiscal year wherein the expenditure has been estimated at Rs1,654 billion.
The budget, which was approved by the provincial cabinet and to be unveiled by KP Finance Minister Aftab Alam in an assembly session on Friday, outlines a comprehensive financial plan aimed at addressing key developmental challenges while ensuring fiscal stability and economic growth, as per the documents.
In the proposed budget for the fiscal year 2024-25, the total income is estimated at Rs1,754 billion. This income includes Rs1,212 billion to be received through various channels such as federal distribution of revenue, oil and gas levy, net profit of electricity, and its arrears. The province's own income is projected to be Rs93.5 billion, while funds from foreign loans and grants are expected to amount to Rs130 billion.
A significant portion of the budget, amounting to Rs1,237 billion, has been allocated for salaries, pensions, and various non-developmental expenses. Additionally, a development budget of Rs400 billion has been earmarked, with Rs130 billion allocated from foreign loans.
The budget also includes several key proposals aimed at improving the welfare of citizens and stimulating economic growth. Notably, the minimum wage for labourers is set to increase to Rs36,000. Furthermore, new tax reforms are introduced, including a reduction in the tax rate of land transfer from 6% to 3%.
In a bid to generate additional revenue, the budget proposes the implementation of a new tax called Vehicle Road User, targeting vehicles registered outside the province. Additionally, a new tax on tobacco companies, in the form of provincial excise duty, is proposed. The proposals include Rs10 billion for giving loans to the youth for business on easy terms,
The budget also includes ambitious social welfare programs, such as the 'Apna Ghar' scheme for the homeless and the 'Hunar Program' aimed at providing vocational training opportunities.
