QUETTA: Balochistan’s proposed budget estimating an outlay of Rs419.9 billion for the next financial year indicates a massive deficit of Rs47.7bn in its projected income and expenditure, as the provincial government targets an ambitious public development plan of Rs126bn.

The provincial government had envisaged a deficit of Rs62bn for the present financial year, which has been covered by massively slashing its proposed develaopment spending of Rs88.2bn for the year to Rs42.2bn and cutting current expenditure in certain areas. It has been a practice of the Balochistan government for some years to produce a deficit budget by spiking development allocations and cover the gap between its projected income and expense at the end of the fiscal through drastic downward revision of uplift budget.

The budget for the government of Chief Minister Jam Kamal Khan was presented by provincial finance minister Mir Zahoor Ahmed Buledi on Wednesday amid protest by opposition legislators against “deficit budgeting”. The lawmakers tore up the copies of the budget speech and other documents before staging a walkout.

Opposition members tear up copies of budget documents

The minister announced 10 per cent increase in pay of the government employees in basic pay scale up to 16 and five per cent in the salary of the employees in BPS17 to BPS20, while the government also decided to fix minimum monthly wages at Rs17,500 in line with the federal budgetary decision.

Of Balochistan’s income of Rs372.1bn next fiscal year, almost 88pc (Rs328bn) comprises federal transfers from the tax divisible pool and straight transfers. The provincial tax and nontax receipts of Rs34bn will form about nine per cent of the total provincial revenues. Foreign grants and loans will make up for the remainder revenues. In order to improve the province’s tax and non-tax income, the government has initiated tax and public finance reforms to mobilise additional resources and plug leakages and waste of limited resources.

Apart from hiking the public development spending to 30pc of the total provincial expenditure that includes Balochistan’s share of Rs18bn from the federal Public Sector Development Programme (PSDP), the budget has allocated Rs43bn for grants and subsidies, Rs20bn for payment of loans and interest, and Rs16bn for investments. Another Rs215bn, including Rs34bn for payment of pensions to retired provincial employees, has been set aside for running government affairs.

The government has decided to create more than 5,400 jobs in the education and other departments, build 21 trauma and emergency centres along the highways, initiate Apna Ghar Housing schemes, launch Green tractor programme for farmers, invest in small solar generation schemes, and award 7,500 scholarships to students. Most of the development funds have been diverted to the ongoing schemes while initiating new projects in different areas.

The private sector will be roped in to build new model towns and modern schools in the province. The government has already established project development fund and viability gap fund to incentivise private investors on the basis of public-private partnership. The budget has also made allocations for survivors of natural disasters and their rehabilitation as well as for survivors of terrorism through the newly created fund. Besides, Endowment Fund of Rs1bn has been established to help the destitute.

The minister said priority areas for development included education, health, fisheries, drinking water, minerals, agriculture, forests and livestock. He also announced Rs3bn Quetta development package and Rs1bn safe city projects for Gwadar and Quetta.

Published in Dawn, June 20th, 2019