Khyber Pakhtunkhwa govt may present Rs300b tax-free budget on Saturday

The Khyber Pakhtunkhwa government is likely to present a tax-free budget of approximately Rs300 billion for the financial year of 2010-11 with 40 per cent increase in the Annual Development Programme (ADP). Provincial Minister for Finance Engineer Mohammad Hamayun Khan disclosed this while talking to this news agency. The budget would be presented in the provincial assembly on Saturday (June 12). Under the Seventh National Finance Commission (NFC) award, the resources of the province have been increased and the annual budget for financial year 2010-11 may be nearly Rs300 billion, said the minister. A large chunk of the development budget would focus on the development of social sector with priority on the provision of health and education sectors. He said the development of infrastructure is also the priority of the provincial government. The finance minister said the government is making efforts to create employment opportunities and announce a people-friendly budget. Regarding increase in the resources of the province, he said, under the Seventh NFC award the share of the province in the federal divisible pool has been increased and they would now receive 14.62 per cent of the federal resources. Similarly, he said, an amount of Rs15 billion would be paid from the undivided divisible pool under the head of expenses in the war on terror. Regarding the revival of the industrial sector, the minister said that before the budget the provincial government had consulted the business community and their input has also been included in the budget document. However, he said, Prime Minister Yusuf Raza Gilani has already announced a big package for the economic revival of the province. The provincial minister for finance said the resources of the province would be utilised for exploitation of the hydropower potential of the province. He said the production of hydropower would not only help overcome the prevailing energy crisis but would also create a permanent mean of revenue for the province. He said a handsome amount would be sanctioned for the exploitation of the hydropower potential. He said some schemes in this regard had already been approved while some others were in the process of the feasibility studies. The energy and power, he said, is important sector and its development is the dire need of the province. He said the first instalment of Rs25 billion under the head of the outstanding net hydel profit would be received in the first week of the next financial year. The minister said the provincial government is taking keen interest in the reconstruction and rehabilitation of the militancy and terrorism-affected Malakand division. In this regard, he hoped that the federal government and donor agencies would extend complete cooperation to the provincial government. Regarding burden of 50 per cent increase in the salaries of the government employees, the minister said the matter was under consideration at the provincial level.