June 19, 2008	Thursday	Jamadi-us-Sani 14, 1429

MUZAFFARABAD, June 18: Finance Minister Raja Nisar Ahmed Khan presented the Azad Jammu and Kashmir’s Rs29.97 billion tax-free but deficit budget for 2008-09 in the Legislative Assembly here on Wednesday.

The budget proposes Rs20.417 billion for non-developmental expenditures and Rs9.555 million, including a foreign component of Rs800 million, for development activities.

The finance minister claimed that the volume of development budget was 20 per cent more than the current year.

According to the minister, the income during the next year was estimated at Rs15.817 billion, including Rs7.5 billion from local resources such as provincial excise, stamps, forests and electricity charges, Rs779 million water use charges of Mangla Dam, Rs2.438 billion from the AJK Council as its share of taxes collected from the AJK territory and Rs5.1 billion from the federal government as AJK’s share in federal taxes.

The deficit amounted to Rs4.6 billion and would be met by funds to be provided by the federal government, the minister said.

The house, which was scheduled to meet at 11am, began its proceedings after almost three hours in the absence of the combined opposition, which had announced a boycott of the session because of its reservations on certain issues.

Giving sector-wise details of development allocations, the minister said that Rs3.087 billion had been earmarked for transport and communication sector, Rs1.355 billion for local government and rural development programme, Rs1.21 billion for electricity and hydropower generation, Rs1.09 billion for foreign-funded projects, Rs640 million for education, Rs552 million for physical planning and housing, Rs400 million for health services, Rs300 million for forests, Rs140 million for sports, Rs100 million for tourism, Rs100 million for industries, Rs52 million each for agriculture, Rs50 million for fisheries and wildlife, Rs50 million for animal husbandry, Rs45 million for Azad Kashmir Mineral and Industrial Development Corporation and the Small Industries Corporation, Rs40 million for civil defence, Rs35 million for water and irrigation, Rs34 million for planning and development, Rs30 million for social welfare, Rs25 million for environment and Rs20 million for information and media development and Rs20 million for information technology.

Thanking Pakistan for its generously aiding the AJK government despite its own financial constraints, he said the Centre had not only increased the development funds for AJK’s Annual Development Programme but also included three major projects to be executed in the AJK at a cost of Rs27 billion in its own Public Sector Development Programme, providing Rs1.5 billion for them during the next fiscal year.

The federal government, he said, would also provide funds for projects aimed at tapping the AJK’s hydropower generation potential.

The minister said that a Small Dams Authority was being established in AJK and Rs50 million had been allocated for the purpose.

REVISED BUDGET: The minister also presented the current year’s revised budget of Rs25.915 billion, including non-development expenditures of 17.91 billion and development expenditures of Rs8.5 billion.

Earlier, the AJK cabinet approved the budget and the revised budget for the current year.