PESHAWAR, June 16: The NWFP government on Monday presented a Rs51.5 billion current revenue receipts budget for the financial year 2003-04, which involves an in-built revenue shortfall of over Rs11.65 billion under the head of receipts.
Provincial minister for finance, development and planning Sirajul Haq presented the current revenue receipts and expenditure estimates for the financial year 2003-04 before the provincial assembly amid protest by the opposition members belonging to the PPP-S and the PML-Q.
The opposition members started shouting soon after Speaker Bakht Jehan Khan invited Sirajul Haq to present the budget.
The opposition members sought a ruling from the speaker over whether the session was being conducted under the LFO or not — a point of conflict between the federal government and the Muttahida Majlis-i-Amal.
Later, the protesting members walked out of the house. However, they were not joined by the opposition members belonging to the ANP and the PPP.
No new tax has been introduced in the budget. The annual development programme (ADP) of the province for the financial year 2003-04 involves a total spending of Rs14.6 billion.
The current revenue receipts estimates involved over Rs30 billion released by the federal government and Rs17.653 billion the province received on account of net hydel profit.
The likely releases by the federal government include Rs24 billion from the federal divisible pool, Rs1.1 billion as support to the local governments, Rs406 million on account of general sales tax on services, Rs3.898 billion subvention to compensate NWFP’s under-development, Rs230 million royalty on crude oil and Rs49 million royalty on natural gas.
In addition, the government has anticipated to raise Rs4.1 billion through its own receipts, including a collective amount of Rs3.75 billion through the tax and non-tax receipts of the province. Besides, an amount of over Rs340 million would be raised — under the PORs — through miscellaneous receipts.
In all, over 90 per cent of the total annual revenue receipts of the province would come from the federal government and the net hydel profit — in continuation with the last several years.
Though the provincial government has claimed that the budget involves a net surplus revenue of Rs5.4 billion, in actual, the 2003-04 financial year’s outlay involves a revenue shortfall of Rs11.653 billion, making the revenue receipts estimates highly unrealistic.
In view of the fact that the province lacks the capacity to raise Rs3.7 billion through the Provincial Own Receipts’s tax and non-tax heads and would not get net hydel profit beyond Rs6 billion, the current revenue receipts estimates of the province appears to be at a high side.
It is also evident from the expenditure estimates which also include an amount of Rs9.5 billion projected as “unallocable,” meaning thereby the funds would not be available to the province for expenditure purposes.
In-service and retired employees of the provincial government would get 15 per cent increase in their salaries and pension, respectively.
This would make the government to specify Rs2.5 billion over and above the Rs17 billion amount the former provincial government had earmarked to meet the salary and pension bills’ requirements.
Against the Rs3.2 billion revised expenditure estimates on account of pension, an amount of Rs3.8 billion has been specified under the same head for the next financial year.
Debt repayment would eat up over Rs7.7 billion, making 15 per cent of the total estimated revenue receipts of the province. Whereas, an amount of Rs1 billion has been specified for extending subsidies to various sectors.
A sum of Rs1.1 billion has been earmarked for general administration against the Rs1.3 billion revised estimates for the out-going financial year.
Similarly, Rs3.1 billion have been earmarked for law and order against the revised expenditure estimates of Rs3.2 billion for the out-going fiscal year.
Community services would be provided Rs910 million against the Rs827 million revised budgetary estimates for the out-going year. Social and economic services have been allocated Rs14.1 billion and Rs2.8 billion, respectively, for the 2003-04 financial year against Rs13 billion and Rs3.2 billion spent separately during the out-going financial year.
The revised budgetary estimates for the 2002-03 financial year reflect that the provincial government would end up with revenue surplus of Rs867 million against the initially estimated deficit of Rs1.8bn the last provincial government had anticipated for the out-going financial year.
The net capital receipts for the next fiscal year have been projected at Rs1.1 billion. The current capital receipts have been estimated at Rs7.7 billion against current capital expenditure of Rs6.6 billion.
The estimated current capital receipts for the new financial year includes Rs5.2 billion second instalment of the World Bank loan under its Structural Adjustment Credit (SAC) programme which is likely to be released in November or December 2003.
While unveiling the government’s vision for the next three financial years, the finance minister said that special measures would be taken to improve functioning of the government departments, their capacity and the services delivery system at the grass-root level to achieve the broader objective of social welfare and economic uplift of the province.
The development expenditure to total current revenue receipts ratio would be raised from the existing 24 per cent to 35 per cent during the next three years.
The MMA’s vision envisages measures to focus on bringing under utilization the NWFP’s nature bestowed potential in the sectors of hydel power, mineral, forest and tourism.
Similarly, insurance schemes would be introduced for the standing crops, livestock and jobless people. Poultry and livestock businesses would be promoted. Efforts would be made to raise remittances from the people of the NWFP living abroad and utilize the same for social welfare and economic uplift of the province.
EDUCATION SECTOR AND WOMEN DEVELOPMENT: The government has announced upgrading of the Khyber Medical College to the level of medical university, in addition to setting up a separate university and medical college for girl students.
Over 9,800 posts of teachers would be created under the development programme of the province. Announcing several measures for women empowerment, the minister said 25 per cent of the Bank of Khyber’s micro-finance credit would be allocated for women.
The government would create a Rs250 million special fund, out of which some 7,200 jobless men and women would get small loans ranging between Rs25,000 and Rs100,000. Of this, 25 per cent loans would be specified for women and the ratio would be raised to 40 per cent during the next two years in an attempt to alleviate poverty.
In all, the Bank of Khyber would lend Rs1 billion under this scheme during the next three financial years.
In addition, the provincial government would also establish a ‘health endowment fund’ to extend free medical facility to patients suffering from cancer, hepatitis, coronary disorders, kidney diseases, and for neurosurgery patients.
A legal aid endowment fund with an investment of Rs50 million would also be established to provide legal assistance to those, specially women and children, who are languishing in prisons in cases of petty crimes.
