MUZAFFARABAD, June 22: The AJK Legislative Assembly on Thursday passed the state’s deficit budget for the fiscal year 2006-7 amounting to Rs19.93 billion without any new tax, within two hours after it was presented by Finance Minister Raja Nisar Ahmed Khan and about two weeks before the next election.

The budget proposes Rs13.930 billion for non-development expenditure and Rs6 billion, including foreign credit of Rs676 million, for development. The development budget is 17.6 per cent more than the current year’s.

It envisages an income of Rs4.52 billion from local resources, Rs2.272 billion from the AJK Council as 80 per cent share of the taxes collected in the state, Rs3.317 billion from the centre as share in federal taxes and Rs663.3 million as Mangla Dam’s royalty.

Last year, the royalty was estimated at Rs900 million but, according to revised estimates, Rs696 million had been received.

The difference between the income and the expenditure of Rs3.158 billion would be met by Islamabad, the finance minister told the house, which had suspended the rules of procedure to pave the way for the budget’s approval on the same day.

Mr Khan said the Oct 8 earthquake had played havoc with the public and private infrastructure in AJK and estimates of losses in the sectors were around Rs65 and Rs50 billion, respectively.

So far, he said, Rs21 billion had been pledged by donors, from which the revival of roads, electricity and healthcare would be completed, while the education sector’s needs would be partially met. Contacts were in progress with donors to meet the remaining requirements of education and other sectors, he said.

The minister said district reconstruction units had been formed and development projects worth Rs9 billion in communications, education and health sectors had been forwarded to the Earthquake Reconstruction and Rehabilitation Authority after approval of steering committee.

He said a Rs770 million project to remove debris from Muzaffarabad was being approved. Master planning for Muzaffarabad had been completed and that for Bagh was nearing completion, he said.

Reconstruction and rehabilitation projects in the quake-hit zone were handled by Erra whereas the annual development programme would be executed by the state government, he said.

He said the federal government had provided Rs5.1 billion for the previous year’s ADP and completion of 110 ongoing schemes was expected shortly.

He said inclusion of 704 ongoing projects and 129 new ones in the next year’s ADP had been proposed.

He said the federal government would execute 60 projects in AJK during the next financial year and it had earmarked Rs9.9 billion for the purpose. They included Mangla Dam project, water supply scheme for Mirpur and adjoining areas, Rathua-Haryam bridge and Neelum Jhelum Hydropower project, he said.