'Poor friendly' Rs488bn budget unveiled in Khyber Pakhtunkhwa
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PESHAWAR: The Khyber Pakhtunkhwa government on Monday announced a Rs488 billion budget for FY2015-16 in the KP Assembly today.
The budget, which is referred to as 'poor-friendly' by KP Finance Minister Muzafar Said, allocated a greater portion of funds to health and education.
A copy of the budget speech obtained by Dawn.com said the total outlay for the FY15-16 budget is 21 per cent greater than that of the outgoing fiscal year.
Total current expenditure is estimated at Rs313bn, while total current revenue expenditure is estimated to be Rs298bn over FY15-16, and total development expenditure at Rs174.9bn.
The allocations for foreign project assistance and debt servicing both fell compared to FY14-15 estimates by 17.3pc and 0.8pc respectively.
Of the total outlay, 29pc or Rs142bn has been allocated to the Annual Development Programme ─ an increase of Rs42bn compared to FY14-15's revised estimate of Rs100bn.
Education
Elementary and secondary education has been allocated Rs98.5bn, while higher education, archives and libraries has been allotted Rs15.5bn, both departments experiencing a 20pc and 16pc increase respectively compared to FY14-15 budget estimates.
Welfare and development
The total budget for welfare, administrative and development budget estimates is Rs487.88bn, of which welfare receives 53pc or Rs259.17bn, while administrative receives 11pc (Rs53.83bn) and development Rs174.88bn or 36pc.
Salaries
A 10pc increase is expected in the salaries of civil servants, while daily wagers are to earn a minimum of Rs13,000 monthly, up from Rs12,000 during FY14-15. Salaries have been allocated Rs175bn in FY15-16, an increase of 20pc over the outgoing fiscal year.
Estimated federal transfers
Total estimated federal transfers are budgeted at Rs371bn, of which federal tax assignment receives the largest share at Rs251bn.
Allocations for various sectors are as follows:
- Education (elementary and higher): Rs114bn
- Health: Rs38.2bn, 14pc increase since FY14-15
- Social welfare, special education, women's development: Rs1.9bn, 18pc increase since FY14-15
- Police: Rs34.5bn, 14pc increase since FY14-15
- Administration of justice: Rs5.9bn, 13pc increase since FY14-15
- Irrigation: Rs3.6bn, 13pc increase since FY14-15
- Agriculture: Rs3.51bn, 12pc increase since FY14-15
- Forest and environment: Rs1.83bn, 11pc increase since FY14-15
- Communications and infrastructure: Rs2.76bn, 17pc increase since FY14-15
- Pensioners: Rs37.4bn, 20pc increase since FY14-15
- Local government: Rs27.7bn, 82pc increase since FY14-15
- Others: Rs232.8bn, 27pc increase since FY14-15
- Wheat subsidy: Rs2.9bn
- Loan mark-up payments: Rs7.2bn
Read more: Only 45pc of annual KP development budget utilised till June: CGPA
Opposition walkout
Opposition members in the provincial assembly shouted protest slogans against the government during the budget speech, ignoring calls for order by the speaker, and thumped their desks with copies of the budget documents.
Eventually, opposition members walked out of the assembly to show their disgruntlement with the government.
Read more
On DawnNews
Comments (83) Closed
Jun 15, 2015 04:36pm
Very good budget ,we will see overall development with this in KP.
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Jun 15, 2015 04:37pm
This budget seems have prepared by some people who have knowledge of a common man problems. If they would be able to deliver, could make some difference in KPK.
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Jun 15, 2015 04:38pm
I can only say, it is the best pro people budget in Pakistan since independence.
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Jun 15, 2015 04:40pm
The budget is focusing on social sector including education, health and social uplift that is indeed needed in KPK. Allocating more resources to the social sector will help to improve the quality of life of people in the long run. The KPK government has a challenge to absorb and implement the projects in time so that impact is seen in the lives of people.
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Jun 15, 2015 04:45pm
last year also they made all these allocations but no projects were introduced. I am hopefull for this year. Inshallah some development projects will be introduced. Looking forward
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Jun 15, 2015 04:46pm
This what we call change, better than expected!!
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Jun 15, 2015 04:46pm
Without increasing growth in economy how poverty can be reduced? If people has no earning then they will send their children to workshops rather than schools.
All provinces should kick start growth in economy otherwise we will keep running health and education budget on foreign aid and school drop out will keep climbing.
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Jun 15, 2015 04:47pm
Seems an excellent effort in comparison to other budgets of provinces and federal. Keep it up and keep thinking about poorest of poors..
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Jun 15, 2015 04:52pm
@haider rehman The combined allocation out of Rs 488 Billion for the Social welfare, special education and women's development is only Rs 1.9 billion. The budget where the social welfare and women development gets less than 1% percent of the total allocation can never be stated as the people friendly budget or the best budget at all. Kindly come out of ignorance and analyze with a non biased eye to see the real situation.
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Jun 15, 2015 05:01pm
Summary reads much better than Federal, Sindh and Punjab budgets on account of social welfare. Though it would be interesting to see more details as some of the figures in this news piece don't tie up!! Approx 50% (232 billion is for “others” under sectoral allocations.
Revenue generation and development expenditure don't look good enough. let's see how economy & voters react to this European styled budget.
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Jun 15, 2015 05:02pm
I would be more than happy to see the development in KPK in the years to come. The honesty should be seen somewhere at least. Though Punjab is having most of the share from this budget but the major investment is seen only on communion-based Project like Metro etc. Sindh govt has got the target to make every city a "Thar" feeling so we shouldn't expect anything from Zardari's PPP or Sir Qayam Ali shah.
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Jun 15, 2015 05:05pm
Higher allocation than expected for the education sector is a welcome step, because formal education and training of our future generations is the key to future well being of Pakistan.
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Jun 15, 2015 05:06pm
@Awan
the concept of development of women and social welfare can be catered with education, health and administration of justice. there is remarkable investment in those sectors.
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Jun 15, 2015 05:07pm
@Aslam Khan Dear Khan Sahib if you can do the simple maths then interestingly the Punjab's allocation for the education is 27 percent of the total budget while KP's allocation is around 25 percent. So with due respect Punjab have already taken the lead in terms of percentage in education and even in health allocation.
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Jun 15, 2015 05:16pm
@Kamran Revival of industry and export is extremely important.
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Jun 15, 2015 05:25pm
Budget is always a trade off between spening on welfare viz development projects. KP opted welfare though spending on education is very rewarding in the long run. Good luck KP
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Jun 15, 2015 05:26pm
Lip service
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Jun 15, 2015 05:27pm
@Awan mere percentages dont matter punjab has more population, more cities than kpk, the budget will be spread over a greater numbers of schools in punjab, and please enlighen us as to what has punjab govt done for schools since the last 7 years in power? for the first time an initiative is being taken with more honesty to improve the failing public education sector in pak, set ur affinity for pml n and cherish this as a pakistani
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Jun 15, 2015 05:27pm
ALL provinces of Pakistan have good, better, best, great and great Budget BUT sahib if no corruption. What is the amount in Budget for ANTI corruption teams? Corruption is encouraging crimes and now corrupt are more open in market to sale toxic and impure food to future generations. Selling toxic and impure food is no big crime in Pakistan and other nations care for future generations.
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Jun 15, 2015 05:27pm
@Arshad - Karachi It includes energy projects, hydal and solar. this graphic did not break it down properly
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Jun 15, 2015 05:31pm
@Awan and @ Aslam, its good that finally we are getting more on education. There is no need to fight on percentage allocations. Think as a Pakistani, not as a Punjabi or Pathan.
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Jun 15, 2015 05:40pm
@Pakistani percentage is quite a meaningful measure if you care to see...Punjab has more population and also more money!!!!!....it is not just more population!!!!.....What has been done in Punjab: well, compare the literacy rate of Punjab with other provinces, and you will find out what has been achieved over the years in Punjab.....
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Jun 15, 2015 05:46pm
What's the point of allocating more money for this project or hat sector when you failed to spend the money allocated in the budget for last year! I wonder where did that money go? NAB are you listening!
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Jun 15, 2015 05:50pm
@Hafeez literacy rate? please exclude the role of private sector education and see how much literacy has risen from public sector education in punjab, perhaps you did not read the comment properly, i was talking about government schools, which are funded by the government and one of the main point is will you be willing to send your children to a public school in punjab or a private school if you had a choice? You also missed the second part of my comment, cherish this as a pakistani and not hate it because you are from pml N, which you are doing in any case, more money yes, but that should mean then that the punjab government should allocated more funds for education than just 27%?
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Jun 15, 2015 05:54pm
@Awan You are ignoring the big chunks allocated for education, health, salaries, pensions and subsidised wheat. This budget has been prioritised to need of the time. The other concerns may have bigger space next time
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Jun 15, 2015 05:54pm
@Pakistani Education budget is based on % of total budget which is 27% of total Punjab Budget. In KPK it is 25% of total KPK budget.Nothing to do with population.
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Jun 15, 2015 05:56pm
to all the budgets pundits.......pakistan can't afford to be welfare state; providing free education and health; raising salaries and pensions every other year; offering subsidies and so; unless we have a broader taxation framework and surplus budget........otherwise the government will continue to print more money and inflate the economy............pakistan needs to create opportunities and demand first.........needs more foreign investment and infrastructure projects to stimulate the economy..........what good will doubling or tripling our graduates do if their isn't an market to accommodate those?
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Jun 15, 2015 06:02pm
@Awan is it possible to see the condition of education and health sectors of both provinces respectively. Although pmln has been ruling there for the last many years. I means to say figures can make a sense when you see a tangible results for the welfare of people.
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Jun 15, 2015 06:04pm
232 billion is for “others” ???
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Jun 15, 2015 06:04pm
@Laeeq Ahmed revival of security is the priority, investments and expansion of industry come themselves.
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Jun 15, 2015 06:08pm
@KHALID SOHAIL a big amount of budget of Rs 232 billion has been allocated for other sectors which means that amount must encompass your concern vehemently.
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Jun 15, 2015 06:21pm
@Pakistani Emergence and spread of private school phenomenon is quite recent....I myself studied from Govt school....In Punjab, now even in primary schools most, if not all, teachers are highly educated...and education standards are continually improving...Most of the literacy rate surveys are based on Govt school students......Allocating more funds to education sectors is good, and at the same time system should have capacity to effectively utilize those funds. For example, last year KPK govt boasted off same kind of increase in allocations, but they ended up consuming far less...They are good at crea
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Jun 15, 2015 06:27pm
@Kamran Growth can come really from measures taken by the Federal Govt and those are missing from the federal budget, which has remained basically a revenue collection / revenue enhancement drive.
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Jun 15, 2015 06:43pm
At least one university with engg and medical college in every district
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Jun 15, 2015 06:46pm
It is important to focus on basic needs of people. When you produce healthy and educated population then it will reward in long term. Usually the govt has focus on short term plans because through that they get votes in upcoming election. But this budget will lay the foundation of educated and healthy KPK and Pakistan. InshAllah
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Jun 15, 2015 07:14pm
Best budget in the history of KPK
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Jun 15, 2015 07:19pm
they r in competent,,they did not used funds last year,,what is use of a budget if u cannot use funds?
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Jun 15, 2015 07:26pm
Some people saying that Punjab Gov't spends more %age wise on education is WRONG.
KPK gave about 20% OR more to districts. These districts can also spend on education if they wish. Actual KPK allocation should be considered by taking this money for districts out. So it will be 25/80 = 31.25%.
This is higher than any other province.
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Jun 15, 2015 07:28pm
One of the lady MLA is acting like a phoolan devi in assembly. The sanctity of house should be maintained .They are democratically elected members but acting undemocratically
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Jun 15, 2015 07:35pm
Why were Opposition members so-disgruntled with the budget?
What would a sane mind gets by thumping the desks and shouting slogans only. How can they protest without knowing the details which eventually take some time to understand (at least for a person like me).
It clearly shows the opposition mainly composed of corrupted lot from PPP, JUI-F & ANP has no commitment towards people. They all wanted to bring chaos and protest no matter how good the Govt. perform.
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Jun 15, 2015 07:38pm
@Kamran ...... Without reducing the population dramatically Pakistan's economy in terms of job growth and economic opportunity will still be on the decline.
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Jun 15, 2015 07:39pm
@Awan And if you a little MAths yourself by takign the population density of both provinces in accounts then you would understand how much allocation is needed in Punjab or in Sindh?
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Jun 15, 2015 07:42pm
Too many praises for what? I am unable to see some significant difference in KPK' financial budget. All other provinces allocated almost the same percentages for education, health and Welfare.
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Jun 15, 2015 07:46pm
JUI-F, PPP, ANP, QWP (Sherpao) and PML-N all ganged up t0 bring down a govt that wants to do deliver on (at least) some of its province. With the exception of the PML-N, which hasn't ruled the KP that much, the remaining 4 parties have a history of corruption in the province with ANP and JUI-F as the masters of corruption and nepotism, following by Sherpao's QWP.
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Jun 15, 2015 07:58pm
PTI, deserves a huge pat on the shoulder, Edgucation, and health, given the pirorety , I am from Punjab, and I already thinking of moving to KPK.
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Jun 15, 2015 08:08pm
If provinces other than Punjab want economic development then their provincial legislatures need to negotiate their own deals with Japan, South Korea, and European countries for industrial development. If you want more than table scraps then go after business yourselves. Invite foreign companies to your provinces and show them around - if you have ideas that will make money.
Right now Vietnam is getting their business because the Vietnamese are willing to work for 40 cents per hour. $4 per day for a 10 hour work day.
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Jun 15, 2015 08:20pm
@Ak Before moving to KPK check last year allocations, and what they actually managed to spend...Allocations are good to make headlines...it is entirely another case whether the system has capability to to spend the money, and that too on well thought out plans...
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Jun 15, 2015 08:37pm
this is very good budget specially regarding education, welfare and health. but i am afraid this budget will not be able to win seats for PTI as most of the people (driven by media) want to see showpiece projects like metro etc.
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Jun 15, 2015 08:41pm
Why are they spending so much on education, health and local bodies. With this money, they could make metroes in 4 cities.
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Jun 15, 2015 08:47pm
I wonder whether they have any plan on how would they spend this money. Apparently the development budget could not be utilised in the previous 2 years. Its not just allocation of money broadly to sectors but they need to have a sound projects as well where they can spend this money.
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Jun 15, 2015 08:50pm
@Adnan It looks so much because many did not care to compare with what other are spending, e.g., in percentage of the total budget of each province. All of them pretty much allocated the same percentage..
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Jun 15, 2015 09:10pm
Can opposition parties justify walkout from assembly?
Even when PTI said they are ready for repolling in LB elections, they wanted to create drama.
Well done KP govt!
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Jun 15, 2015 09:11pm
@Awan have you counted education and Health ? or are you just conveniently ignoring that ? Obviously Education and Health also benefit Women and Special needs!
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Jun 15, 2015 09:13pm
Those creating mess were worried that they will not be able fill their pockets and the allocated amounts will be spent transparently without any personal gains. Well done IK and the Government of KPK
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Jun 15, 2015 09:20pm
Am i the only one who watched the video? The opposition has its right to dissent but that behaviour by Nighat Orakzai etc was disgusting, it showed they didnt really have anything to say.
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Jun 15, 2015 09:39pm
Annual development budget should be 87 billion instead of 174 billion because KPK government could not utilize the full budget (45% utilized) this year which is going to end on 30th June 2015. Then the deficit budget will become a surplus budget.
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Jun 15, 2015 09:41pm
Simply Excellent! With this budget one can hope the best for KP.
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Jun 15, 2015 09:49pm
Education (elementary and higher): Rs114bn
Health: Rs38.2bn, 14pc increase since FY14-15
These two will set apart KPK from the rest of provinces! soon healthy and educated people will emerge strong from that part of Pakistan!
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Jun 15, 2015 09:55pm
@Hafeez I tend to disagree, I went one of the top Government School of Lahore! it was great then, now its ruined over the years.
Same goes for Hospitals, many used to be great specially in Lahore and I cant say that for these now! standards have gone from bad to worst instead of improving.
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Jun 15, 2015 10:06pm
Very glad to see more money for education as this will help everyone. Education is the key to development!
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Jun 15, 2015 10:25pm
Way to go KP. Show other Provinces what to do. Education, Healthcare, Infrastructure, focus on it. KP will lead Pakistan.
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Jun 15, 2015 10:25pm
More money for Education & Health... way to go PTI
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Jun 15, 2015 10:45pm
Analyzing and spending visely is the best way to go. Overspending unthinkably is what some other provinces showed in past. KP is doing the right thing of not spending like maniacs and leaving the projects unfinished. They may have spent less in past years but what they are going to spend next years clearly shows the thought process went behind this budget and shows the beneficiaries of this thinking.
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Jun 15, 2015 10:58pm
Take note Nawaz sharif and the PML.
This is how you run a provice fairly, without descrimination and towards progress.
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Jun 15, 2015 11:17pm
Why do people attach great importance to development projects..education and health are key not white elephant projects , mindset needs a change once society is educated everything will come in abundance well done pti
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Jun 15, 2015 11:23pm
what the genius opposition had to say...you got to absorb the sincerely placed budget.
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Jun 16, 2015 12:58am
@K Maliks you are right but you are wrong as well. to build infrastructure you need educated people and where will they come from. Also once you educate your people they will find a way to earn more money. an educated farmer is much better than an uneducated one. Or still if they dont find a Job in Pakistan, an educated person when migrates to other country will find a better paying job.
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Jun 16, 2015 12:59am
Why a walk out? Besides KPK government must build roads to all the sight seeing areas and develop the tourist industry. The jeep business in all those tourist attaraction areas must die. Once the roads are built more people will travel to these areas and more businesses will grow and hence more jobs will be created. The tourist friendly KPK will generate billions. If developed on scientific basis it can feed the rest of Pakistan. But educating people is must.
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Jun 16, 2015 01:55am
@CYRUS a labourer works for about PKR300 in pakistan. which is less than 3 dollars. vietnamiese are working for 4 dollars which is more than 400 pkr. main problem is corruption in our country it is not the budget.
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Jun 16, 2015 02:00am
@Common man imagine if KPK was in the hands of JUIF or ANP. instead of going forward it would be going backward let alone stabilizing it or seeing signs of improvement. PTI has not only stabilized it but shown improvement. I am from KPK.
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Jun 16, 2015 02:52am
Allocating budget is one thing and utilizing it, another. Let's hope the KPK Government uses the funds to the benefit of its people.
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Jun 16, 2015 03:46am
@K Maliks So we should ahve Metro bus or what ever but no hospitals or free education???? what are you talking about. We can do without mega projects and concentrate on the development of the people so they can help themselves.
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Jun 16, 2015 04:22am
good job kpk. you are rocking.
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Jun 16, 2015 04:56am
As long as country has dual education system, one for privileged class other for masses , true progress will dodge the country.
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Jun 16, 2015 06:15am
@Awan This is only for special education (disabled) and not for the all the social sector. Have a read again, you are confused.
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Jun 16, 2015 06:18am
@Awan You are again counting the billions allocated for laptops to education in Punjab.
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Jun 16, 2015 06:27am
@Hafeez I am from KPK and I can tell you that many parents have moved are moving their children from private to Govt run schools and this trend will continue. It doesn't mean I am against the private sector, but when people see that Govt schools are improving and can now compete with private sector, why would one pay fees. This is also a good saving for low middle class who are struggling with their day to day life.
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Jun 16, 2015 06:31am
@Kamran, you must know economic growth is an increase in the production and consumption of goods and services. This happens when majority of the people have purchasing power to consume those goods and services. Thats why measures like increasing the salary, pension amount and other related measures allows masses to consume more and on the supply side, it encourages more production which ultimately results in positive growth of national output and productivity.
On the other hand measures like decreasing the GST and other indirect taxes will allow common people to have more access to goods and services. The only issue with this budget and KP Government is that they are not able to control this ongoing brain drain among the young engineers and research fellows. There should be an IT Tower established in 4 major cities of KPK because PTI have been the most popular party among the educated class specially the college and university going students.
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Jun 16, 2015 09:53am
very good budget and hope kpk will improve now with effort of Imran khan
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Jun 16, 2015 09:54am
As a whole a balanced budget.Good work by Muzafar Syed and his team
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Jun 16, 2015 10:36am
@Awan Punjab literacy since 7 years is hovering aroud 60 percent, there has been no improvement. According to Ali Ailan education has detroit in punjab this year. RESEARCH
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Jun 16, 2015 10:53am
Now allocations have been made. it remains to see that proper utilisation to its max are made to bring change in common man's life.
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Jun 16, 2015 03:30pm
why did the opposition walk out?
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