PESHAWAR – Khyber Pakhtunkhwa has presented a budget worth Rs2,119 billion, proposing a 10% increase in salaries and a 7% raise in pensions.
Presenting the budget, Provincial Finance Minister Aftab Alam Khan stated that during the current fiscal year, the provincial government paid Rs49 billion in outstanding loans, including Rs18 billion in interest.
He added that the previous KP government had a Rs. 100 billion budget surplus. However, the federal government cut Rs. 42 billion from NFC allocations and paid Rs. 40 billion less for the merged districts’ current expenditures.
He said billions were also slashed from development funds by the federal government, and due to a Rs. 1,000 billion shortfall in federal tax targets, KP received Rs. 90 billion less.
The proposed Annual Development Program (ADP) is worth Rs. 547 billion. Total estimated annual expenditure is Rs. 1,962 billion, with a surplus budget of Rs. 157 billion. The minimum monthly wage is proposed to be increased from Rs. 36,000 to Rs. 40,000.
Employees not receiving executive allowance may get a 15% to 20% increase in disparity allowance. The province faces a shortfall of Rs. 267 billion under the NFC.
The federal government owes KP Rs. 71 billion in net hydel profits and Rs. 58 billion under oil and gas revenue.
The total development budget is over Rs. 517 billion, including Rs. 177 billion in foreign grants and loans. The budget includes 1,349 ongoing and 810 new projects.
Aftab Alam Khan said 16% of the ADP, the largest share, is allocated to road construction — Rs. 53.64 billion for 583 new and ongoing schemes.
He said Rs. 27 billion are allocated for 182 health projects, over Rs. 13 billion for 96 primary and secondary education projects, and Rs. 6.27 billion for 63 higher education schemes.
For the transport department, Rs. 1.28 billion are allocated for 10 schemes; for sports, Rs. 8.88 billion for 51 schemes; and for security, Rs. 6.99 billion for 68 home department projects.
Energy has been allocated Rs. 4.79 billion for 59 projects, agriculture Rs. 7.25 billion for 46 schemes, and district development Rs. 45.6 billion.
This year, Rs. 120 billion is allocated for development in settled districts. For the first time, a 30% increase has been proposed under the ADP Plus, raising it to Rs. 155 billion.
An additional Rs. 35 billion will be spent on timely completion of major projects. A comprehensive plan for good governance has been developed, with Rs. 7 billion allocated for sectoral reforms.
Lastly, the finance minister stated that Rs. 2.86 billion are allocated for health, Rs. 700 million each for minerals and industries, Rs. 620 million for livestock, Rs. 550 million for local government, and Rs. 550 million for tourism.
