QUETTA, June 23: Balochistan Finance Minister Syed Ehsan Shah presented on Wednesday a Rs42.73 billion budget for the year 2004-05, envisaging a Rs28.45 billion revenue expenditure and a development outlay of Rs14.28 billion.
The revenue budget shows an operational shortfall of Rs2.76 billion.
The minister delivered his more than 100-minute budget speech in the provincial assembly amid slogan chanting by the opposition members, making the speech barely comprehensible.
The opposition members, carrying placards inscribed with anti-government slogans, called the budget anti-people. At one stage during the speech, the budget documents were turned into paper missiles which were hurled at the treasury benches.
The journalists covering the proceedings joined the protest because the government had failed to provide them with the budget documents and a copy of Mr Shah's speech. The budget showed an overall deficit of Rs8 billion which would go up to Rs9.5 billion because of a 15 per cent increase in the salaries of government employees.
Mr Shah said that the government had requested the centre to defer the Rs2 billion debt servicing this year and ensure the payment of Rs4 billion gas development surcharge (GDS).
"On getting the debt-servicing relief as well as the GDS arrears we will not only be able to meet our revenue shortfall but will also manage to generate Rs3.23 billion to finance our development programme," said the minister.
This amount with an indicated foreign assistance of Rs1.43 billion would make a total of Rs4.66 billion that would help fund the development programme, he added. He announced that 11,000 jobs would be created in hospitals, law-enforcement agencies and other government departments.
The public sector development programme was expected to create another 3,000, he said. The government expects a total revenue income of Rs26.38 billion during the next fiscal, including Rs24.76 billion as federal receipts and Rs1.62 billion as provincial revenue.
Total revenue expenditure was pitched at Rs28.45 billion, indicating an operational shortfall of Rs2.04 billion. There was an additional indicated shortfall of Rs730 million in the capital accounts, which would eventually go to revenue expenditure and increase the deficit to Rs2.76 billion.
The government intends to line up Rs6 billion by asking Islamabad to defer Rs2 billion debt servicing and make payment of Rs4 billion GDS arrears. The federal government is already providing funds for Rs1.5 billion DERA and DIMRIC schemes while Rs1.43 billion assistance is expected to come from donors.
The outgoing fiscal year, the minister pointed out, had begun with Balochistan's credit balance of more than Rs854 million with the State Bank but it was ending with an overdraft balance of about Rs5 billion.
He estimated the budget deficit in the current year at about Rs6 billion because the income had dropped and expenditure increased over the budgetary projections. The 2003-04 budget indicated the revenue income at Rs24.64 billion but it ends up at Rs23.69 billion as the year comes to an end.
The revenue expenditure in the outgoing fiscal was projected at Rs24.03 billion but now it is being calculated at Rs25.53 billion. The minister, however, said that 'stringent' economic measures had been taken in the current fiscal year to keep the administration cost under control.
The minister outlined the objectives of the 2004-05 budget, including mid- and long-term financial planning, strengthening of the delivery system to ensure that the common man received maximum benefits, improvement of the water distribution system and creating a business-friendly environment to generate employment opportunities.
Earlier, he said that the completion of the Gwadar port project would not only bring progress and prosperity to Balochistan but would also have positive impact on the economy of the country.
He said 200 young persons would be imparted training aimed at preparing them for senior positions in the Gwadar port management. Five more jetties - Peshkan, Gunz, Jewani, Kalmat and Gandmali - would be developed during the next fiscal year, he added.
Mr Shah also spoke on the devolution process, saying that funds were being provided to the local governments to accelerate the pace of development. He said the provincial finance commission had been activated as a separate secretariat had been set up for the purpose. He also announced a three-fold increase in the insurance payment for government servants.
