Kp’S Surprising Budget: Rs1.654Tr With Rs100Bn Surplus

KP Unveils Rs1.654 Trillion Surplus Budget

Comprehensive Fiscal Plan Prioritizes Education, Health, and Economic Development

Peshawar, May 25, 2024: The Khyber Pakhtunkhwa (KP) government, led by the Sunni Ittehad Council/Pakistan Tehreek-e-Insaf (PTI) coalition, has presented a robust budget for the 2024-25 fiscal year with an estimated surplus of Rs100 billion. The comprehensive fiscal plan allocates substantial funds to key areas, including education, health, infrastructure, and social protection.

Revenue Projections and Expenditure Allocation

The KP government anticipates revenue inflows of Rs1.754 trillion, with over 80% projected to originate from federal resources. Provincial revenue is estimated at Rs93.50 billion.

Total expenditures for the next financial year are outlined in the budget document as Rs1.654 trillion.

Salaries, Pensions, and Minimum Wage Adjustments

Recognizing the challenges faced by public servants, the government has announced a 10% increase in salaries and pensions.

Furthermore, the minimum wage has been raised from Rs32,000 to Rs36,000 per month.

Tax Reforms and Revenue Enhancement

While no new taxes have been introduced, the government plans to expand the tax net to increase revenue collection.

Notable measures include:

* Introduction of tobacco cess on tobacco companies
* Reduced sales tax rate for hotels
* Mandatory implementation of Restaurant Invoice Management System

Annual Development Programme (ADP)

The budget allocates Rs416.30 billion to the ADP, including significant investments in:

* Provincial Development Programme: Rs120 billion
* District Annual Programme: Rs24 billion
* Accelerated Implementation Programme for merged districts: Rs79.29 billion
* Federal government projects under PSDP: Rs26.41 billion

Social Protection and Human Development

The government is prioritizing social welfare through programs such as:

* Insaf Sehat Card: Rs34 billion (including Rs6 billion for merged districts)
* Ihsas Rozgar Programme (self-employment scheme): Rs12 billion
* Ihsas Naujawan Programme (youth employment initiative): Allocated funds
* Ihsas Hunar Programme (skills development): Allocated funds

Infrastructure and Economic Development

Key infrastructure projects included in the budget are:

* Chashma Right Bank Canal (Lift-cum-gravity) Project: Rs10 billion
* Tank Zam Dam, Chodwan Zam Dam, and Draban Zam Dam projects
* Peshawar Bus Rapid Transit: Rs3 billion

Education and Health

The government is investing heavily in education and health:

* Education: Rs362.68 billion
* Health: Rs232.08 billion (including Rs34 billion for Sehat Card and air ambulance service)

KP’s Fiscal Challenges

The budget documents acknowledge the province’s ongoing financial challenges, particularly with regards to its due share in hydel power, oil and gas royalty, and windfall levy.

CM Gandapur’s Remarks

Chief Minister Sardar Ali Amin Khan Gandapur expressed satisfaction with the budget, highlighting its focus on welfare and economic development despite financial constraints.