June 18, 2007	Monday	Jumadi-us-Sani 02, 1428

PESHAWAR, June 17: The NWFP government has decided that five per cent of the royalty being received on hydel-power, gas and oil will be spent on the development of infrastructure of areas where these are produced.

The decision to be implemented from the next financial year would help improve socio-economic conditions of the people living in Haripur, Karak, Kohat and Malakand areas, NWFP Finance Minister Shah Raz Khan told a post-budget press conference here on Sunday.

He said governments in the province had been receiving royalties in net profits of hydropower, gas and oil generation, but nothing had been done development of areas where these natural resources were produced. “The MMA government has decided that it will set aside five per cent of the royalty for the development of these areas,” the minister said.

Giving details of budgetary estimates for the next financial year, the minister said that total revenue receipts had been estimated at Rs109.017 billion while expenditures were put at Rs114.507 billion, showing a deficit of Rs5.489 billion.

About relief measures, Mr Shah Raz said that apart from a 15-20 per cent raise in salaries and pensions of public sector employees, widows had been exempted from paying property tax.

Under the policy, a residential building owned and occupied by a widow, whose annual tax is up to Rs2,500 and any other building owned by a widow where the total area does not exceed three marlas and annual tax remains under Rs5,000, will be exempted from property tax. This exemption will cost the provincial government Rs6 million annually.

He announced that the government would continue to finance the social safety net scheme launched last year to address financial problems of old-age citizens and educated unemployed youths.

Responding to a question, Mr Shah Raz said the provincial government had not withdrawn from its principled stand on the net hydel profit, as the reflection of Rs6 billion capped amount in the budget estimates for the next financial year had been done just to make it realistic.

The minister criticised the federal government and Wapda for not honouring the verdict of the arbitration tribunal which vindicated the NWFP stand on net hydel profit arrears.

Mr Raz accused the federal government of backing out of its commitment and letting Wapda to challenge the arbitration award in a civil court.