PESHAWAR: The Khyber Pakhtunkhwa’s Pakistan Tehreek-e-Insaf (PTI) led government Saturday pulled the curtain on Rs404.80 billion budget for FY2014-15 carrying Rs139.80 billion ambitious Annual Development Program (ADP) and 10 percent increase in the salaries of the government employees, Samaa reported. Provincial finance minister Sirajul Haq delivered the budget speech in the face of relentless Opposition...
PESHAWAR: The Khyber Pakhtunkhwa’s Pakistan Tehreek-e-Insaf (PTI) led government Saturday pulled the curtain on Rs404.80 billion budget for FY2014-15 carrying Rs139.80 billion ambitious Annual Development Program (ADP) and 10 percent increase in the salaries of the government employees, Samaa reported.
Provincial finance minister Sirajul Haq delivered the budget speech in the face of relentless Opposition protest.
Presenting the annual budget in the provincial assembly, Haq said that the annual receipts and expenditures had been pitched at Rs404.80 billion, which is 18 percent higher than the outgoing fiscal year.
He told the house that it was balanced budget wherein Rs265 billion have been allocated for the current revenue expenditures.
Giving the details of the revenue receipts to be secured in next fiscal year, he said that Rs227.120 billion would be provided to the province from the federal taxes, which is 14.55 percent higher than the outgoing fiscal year.
“The province is expected to receive Rs27.292 billion as charges incurred in war against terror”, the told the assembly.
According to Haq, Khyber Pakhtunkhwa will generate Rs29.260 billion from royalty on gas and petroleum produced in the southern areas –an increase of 6.4 percent over the current revenue generation.
“The province will receive Rs12 billion from general services on sales tax — 100 percent increase over the current fiscal year”, he said.
He told the house that the province owned receipts had been estimated at Rs13.93 billion.
“The revenue from province owned hydroelectric power generation has been estimated at Rs 2.85 billion, which is 21 percent higher than the outgoing fiscal year”, the finance minister added.
The total volume of the province owned revenue receipts has been estimated at Rs 28.787 billion which is 70 percent higher than the current fiscal year.
He told the house that the province was expected to receive Rs12 billion as net hydel profit while the federal government had assured the provincial government to pay Rs32.27 billion in the next fiscal year as arrears against net hydel profit.
“Under the head of miscellaneous generations the province is expected to receive Rs720 million, whereas Rs35.350 billion is likely to be obtained from foreign project assistance”, Haq said.
The house was informed during the budget speech that nine small hydel power stations would be set up under the head of regional development.
“The government is also planning 350 small hydel dams in Hazara and Malakand Divisions besides exploring oil and gas reservoirs in the province.
Moreover, nine irrigation and 18 potable water projects would also be completed, while fruits and vegetables would be cultivated on 1460 acres of land besides construction of ponds for fish farming.
Haq said that after the completion of 36 projects this fiscal the province would be generating 680 megawatt electricity.
“Around 300 megawatt would be generated by Balakot hydel power station, 188 megawatt by Naran Dam hydel power station Manshera, 10 megawatt by Nandahar hydel power station, and 182 megawatt by three small dams in Chitral”, said he giving a breakup.
The provincial government has also decided to establish an education city on top of medical colleges in Nowshera, and Taimergrah.
About the proposed tax reforms 2014-15, the finance minister told the house that KP Revenue Authority had been set up with the objective to bring workable reforms in the taxation system.
On the steps taken for elimination of unemployment, Haq said that Rs50000 to Rs200,000 would be disbursed without interest through 'Khud Kifalat Scheme' under the Rs270 billion rolling fund.
—Rs3.460 billion for 36 energy & power sector project.
–Rs7 billion for 350 small hydel projects.
–Rs111 billion for education.
–Rs93 billion for elementary and secondary education.
–Rs16 billion for higher education in the province.
–Rs50 million for Youth IT Training Program.
–Rs2 billion for special incentives.
–Rs500 million for teachers’ award.
–Rs800 million for teachers training.
–Rs25.23 billion for health.
–Rs28.53 billion for the police department.
–Rs26 million for labour sector.
–Rs12.25 billion for regional development sector.
–Rs3.206 billion for the irrigation sector.
–Rs620 million for mines/minerals
–Rs50 million for journalists fund.
–Rs29 billion for Peshawar facelift.
–RsRs2.71 for subsidy on wheat procurement.
–Rs1.11 billion for women/social welfare.
–Rs30 billion for rehabilitation of schools destroyed by militants.
–Rs105 billion for provincial development program
–Rs149 million for religious and minorities affairs sector.
–Rs1 billion for holding local bodies polls.
–Rs5 billion for District Development Fund.
–Rs200 million for transport sector uplift.
–Salaries and pension of government employees has been increased by 10 percent increase from July 1, 2014.
–The medical and for Grade-1-15 employees increased by 20
— Conveyance allowances for Grade-1-15 up by 5 percent.
–One premature increment for Grade 1-4 employees proposed.
–Similarly, minimum pension has been increased from Rs 5000 to Rs 6000
–Orderly allowance for retired BPS Grade-20 officers and above fixed Rs12,000.
KP government has introduced various new taxes along with hiking the ratio of taxes on doctors and government employees to increase revenue receipts in financial year 2014-15.
The proposals for new levies along with continuation, revision, and exemption of certain taxes, fees, cesses, and duties were introduced in the Finance Bill, 2014.
The provincial government has proposed tax on agricultural land under which lanholders earning over of Rs.0.4 million will have to pay 5-17 percent tax.
The ratio of professional tax has also been increased. Now specialist doctors will have to pay a tax of Rs20,000/- per annum while non-specialists including medical practitioners, Hakeems, homeopaths etc Rs.2000/- per annum. On the other hand dentists will pay Rs15,000/- per annum.
Service Stations/Mobile Towers
Service stations and mobile telephone towers will also be brought in the tax net. The service stations will have to pay Rs.10,000/- per annum in head of GST. The mobile companies will now be bound to pay Rs.40,000/- per annum on the towers in provincial headquarters, Rs.30,000/- per annum in divisional headquarters and Rs.20,000/- per annum at district headquarters.
Land tax will also be collected on per acre of agricultural land.
The provincial government in its finance bill has also proposed to tax all government employees from BPS-5 to BPS-22 ranging from Rs100 to Rs.2000 per annum. However, employees from BPS-1 to BPS-IV have been exempted.
Similarly, tax ratio of wedding halls and other businesses have also been increased.