PESHAWAR: Khyber Pakhtunkhwa Minister for Finance Muzaffar Said has presented the Rs487.884 billion tax-free budget for the fiscal year 2015-16 amid the opposition’s slogans, especially chanted by the PPP, PML-N JUI-F and ANP members of the Parliament.
Muzaffar in its budget speech, which was increased 21 percent over the outgoing financial year, said that KP would receive Rs250.89 billion from federal divisible pool. It will also receive Rs30.14 billion for war on terror. In addition, he said, the federal government would provide Rs68 billion as hydel net profit and arrears of electricity and Rs19.41 billion as royalty on oil and gas. He announced 10 percent increase in salaries and pensions.
The minister said that Rs174.88 billion had been allocated for ADP, under which at least 911 ongoing development schemes would be completed and 614 new schemes be initiated.
Moreover, Rs97.54 billion had been proposed for education sector reflecting a 21 percent increase. Similarly, Rs29.95 billion had been earmarked for health sector with an increase of 18.69 percent as compared to previous year. The minister said special attention was being given to improve law and order and for which Rs32.74 billion had been allocated for police to improve its capability.
He said special measures will be taken for the welfare of poor women, aged and special people.
In his speech, the finance minister said no new tax had been levied in the budget except some re-adjustments. He estimated provincial revenue receipts at Rs 487.884 billion while the total expenditure had been projected at Rs487.884 billion, showing balance in the receipt and the expenditures.
Similarly, Rs44 billion would be obtained through general sales tax on services which were 17 percent higher than 2014-15, he added. He said the province would receive around Rs37.124 billion from other revenue sources which were 166 percent higher than the current fiscal.
The government, he said, expected to generate Rs.8 billion from the auction of the timber whereas Rs2.25 billion were likely to be obtained from other miscellaneous sectors. Under the foreign project assistance, the KP was likely to secure Rs.32.884 billion in the next year, he added.
Muzaffar said though no new tax had been levied in the budget, however, some minute changes had been made in the existing taxes ratio.
The budgetary documents revealed that an increase had been proposed in schedule-II category A and C in commercial property tax-D. Thus, minimum tax on CNG stations, petrol pumps and service stations that come in scheduled-II would be imposed. The annual tax ratio on vehicles had not been changed since 2000, and the existing tax ratio was too less than the other provinces comparatively, therefore, tax on commercial and powerful big vehicles had been proposed, he said. Likewise, Rs10,000 one time annul tax had also been recommended on 1000cc vehicles.
An increase in permit and licence fees had been proposed. Besides raise in parking fee, rout fee and other fees being collected by provincial transport department had also been recommended. A reasonable increase in fee ratio on agriculture and livestock had also been planned, he added.
Similarly, KP Minister for Finance Muzaffar Said also announced merger of 2011 and 2012 ad hoc relief allowances in the basic pay, besides 10 percent increase in salaries and pension and 25 percent in the medical allowance of the government employees.
Apart from that, allowances of Science and Technology and PhD had been increased from existing Rs 7,500 and Rs 2250 respectively to 10,000 per month. The finance minister announced to give two scales up gradation to employees of BPS-1 to five and one pay scale upgradation to the employees of BPS 6 to 15.
In addition, he also announced special compensatory allowance to all the provincial employees on the basis of their notional up-gradation from grade 16 to 17 equal to their salaries. The decision of upgradation would not be enforced on those government employees whose services were either upgraded collectively or individually from July 1, 2010 to July 1, 2015 or they were getting 40 percent general pay or more financial benefits in terms of special salary or allowance.
The matter of up-gradation and restructuring of para-medics would be dealt separately, the minister told the house. He disclosed that a committee under the secretary finance was being constituted that would submit recommendations of the salaries of the government officers of grade 17 and above within six months.
The minister said that in case of death of the pensioner, the pension would be given to his widow or divorced daughter till her death or re-marriage. The minister said as per the announced policy of the federal government, the surrendered part of the commuted value of pension would be re-issued. He said the provincial finance department would bear Rs20billion per annum due to upgradation, increase in salaries and pension.
The charge allowance of heads of primary, middle, high and higher secondary school teachers are being increased to Rs250, 350, 600 and 750 respectively, he said, adding schools which were facing shortage of theology teachers and PET, vacancies would be created there. For farmers, the minister announced provision of free seed to farmers from next wheat crop and they would provide five percent of the wheat production to the government. He said that under ‘youth challenge fund scheme’ the Bank of Khyber would provide loans to youth for which Rs8.16billion had been earmarked. Similarly, Rs77 million had been allocated for minorities. Likewise, KP government earmarked Rs1.21billion for 53 tourism and sports projects and Rs3.20billion had been proposed for 39 power and electricity projects.
