The PTI-led Khyber-Pakhtunkhwa government is all set to present today (Wednesday) the last budget of its tenure for FY2017-18, with a total outlay of Rs603 billion featuring more than Rs208 billion for the Annual Development Programme (ADP).
Documents obtained by The Express Tribune show that the budget outlay is 19% higher than the revised estimates of Rs505 billion in the outgoing fiscal year.
Similarly, the Rs208 billion ADP is 29.1% higher when compare with Rs161 billion ADP in the outgoing year. The ADP for FY2017-18 contains a massive Rs82 billion of foreign aid and Rs125 billion in local components.
K-P Finance Minister Muzaffar Said will present the budget in the provincial assembly in the afternoon.
On the revenue side, the K-P government has remained historically dependent on the federal government, and the situation is no different this year. It expects Rs425 billion from the federal government which is around 11.8% higher than Rs380 billion during the outgoing fiscal year.
The federal receipts include Rs326 billion of federal taxes, Rs39.1 billion as 1% extra from the divisible pool for the province’s role in the war on terror, and Rs24.6 billion in royalties of natural gas and crude oil along with gas development surcharge and excise duty on natural gas. It also includes Rs35.7 billion of net profit from hydropower generation and its arrears.
The provincial government’s own revenue targets are set at Rs45.2 billion, including Rs22.3 billion of provincial taxes and Rs22.9 billion of non-tax receipts. Moreover, the government has set to borrow Rs15 billion from the Hydel Development Fund and Rs10 billion loan from commercial banks while it has Rs24.8 as cash in its kitty.
On the expenditure side, the K-P government will spend Rs208 billion on development projects while the remaining Rs395 billion includes Rs218 billion for salaries, Rs53 billion for pensions and Rs72.9 billion for contingencies, operation and maintenance and non-salary expenditures of districts. It also includes Rs8 billion for debt servicing, Rs2.9 billion for subsidies and Rs5.1 for grants to local councils.
Development funds
The total size of the ADP is Rs208 billion which is 29.1% higher than in the outgoing year. It comprises Rs126 billion generated from local components and the remaining Rs82 billion under foreign project assistance.
The ADP comprises a total of 1,632 development schemes, including 1,182 ongoing and 450 new schemes. An amount of Rs78.8 billion has been allocated for the ongoing scheme and Rs47.1 billion for the new schemes.
The new schemes also include 84 development schemes related to the China-Pakistan Economic Corridor (CPEC) which are estimated to cost Rs2,452.58 billion. However, the ADP carries only a token allocation of Rs1 million over the CPEC schemes.
The foreign project assistance is worth Rs82 billion which is 127.6% higher when compared with Rs36 billion in the outgoing year. This contains Rs52.7 billion loan from the Asian Development Bank for the Bus Rapid Transit System of Peshawar and Rs29.4 billion as grant.
The PTI government has again prioritised the education and health sectors like in the previous years. This year the ADP comprises Rs20.3 billion development funds for education and Rs12 billion for health. District governments which were supposed to get 30% of the ADP have been given Rs28 billion which makes only 22% of the provincial ADP.
After education and health, infrastructure development also got a good portion in the ADP. It includes Rs13.7 billion for roads and Rs6.1 billion for urban development. Besides, Rs7 billion has been earmarked for water supply schemes and Rs5.1 billion for drinking water and sanitation services.
The provincial government is expected to announce a 10% increase in the salaries of government employees.
