Khyber Pakhtunkhwa budget today; Rs300bn increase likely

The total outlay of Khyber Pakhtunkhwa (KP) budget for financial year 2010-11 is likely to amount to Rs 300 billion as against Rs 211 billion of the current financial year. The budget is scheduled to be presented in the provincial assembly on Saturday, June 12. With increase in the share in the 7th National Finance Commission (NFC) Award, the province will receive an amount of Rs 200 billion in different heads from the federal government. The increase in resources would swell the volume of the annual development programme (ADP) by 40 percent. Talking to Business Recorder, KP Minister for Finance, Mohammad Hamayun Khan, said that under the 7th NFC Award the province would receive an extra amount of Rs 15 billion under 1 percent of the undivided federal divisible pool as compensation in the war on terror. He said that the provincial budget would be tax-free and people-friendly, with special measures for the generation of employment opportunities and revival of the industrial sector of the province. The resources arriving in head of the net profit on hydropower generation would be diverted for utilisation of the potential energy sector of the province. The annual development programme would be focused on development of social sector with priority on provision of health and education and establishment of infrastructure facilities. Regarding revival of the industrial sector, he said that during the budget making process the provincial government had consulted the business community. A special consultative workshop was held for the industrialists and traders to include their input in the budget document. He said that Prime Minister Yousuf Raza Gilani has also announced a big package for the economic revival of the province. He said that efforts were on for utilisation of relief measures announced under the Prime Minister's relief package. The minister said that the resources of the province would be utilised for exploitation of the hydropower potential of the province. He said that the production of the hydropower would not only help overcome the prevailing energy crisis of the country but would also create a permanent mean of revenue for the province. He said that a handsome amount would be sanctioned for utilisation of the hydropower generation sector. He said that some schemes in this regard had already been approved, while some were in the process of the feasibility studies. Energy and power, he said, is an important sector of the province and its development is the dire need of the province. He said that first instalment of Rs 25 billion in head of the outstanding amount in head of the net profit on electricity would arrive in the first week of the next financial year. He said that the provincial government is taking keen interest in the reconstruction and rehabilitation of the militancy and terrorism affected Malakand Division. In this regard, he said he was hopeful that the federal government and donor agencies would extend complete co-operation to the provincial government. Regarding the burden of the 50 percent increase in the salaries of the government employees, he said that the matter was under consideration at provincial level.