PESHAWAR, June 15: NWFP Finance Minister Shah Raz Khan will present on Saturday about Rs100bn provincial budget for 2007-08 which envisages current revenue receipts at Rs84bn.

The NWFP government, which derives 90 per cent resources from the Centre, will be able to overcome its financial woes in the next fiscal owing to higher proceeds on accounts of federal divisible pool, subvention, straight transfers and net hydel profit, the sources said.

In the outgoing fiscal year, the target for the current revenue receipts has been projected at Rs67.542bn which is likely to be surpassed due to more than budgeted fiscal transfers by June 30, 2007.

Apart from greater flow of receipts from the centre, the government will reflect an amount of $130 million (Rs7.8bn) to be borrowed from the World Bank as Development Policy Credit (DPC-II) under current capital receipts component for the next financial year.

The government has planned to spend the borrowed money for the improvement of social sector mainly making resources available for the reform initiatives as envisaged under Provincial Reform Programme (PRP-II).

Also, the government is intending to prematurely retire Rs5bn worth expensive federal loan with a major portion of the World Bank’s loan in next fiscal, the sources said.

The government is likely to pitch the target for Provincial own Receipts (PoR) at Rs6.2bn, which will be achieved through reforms in tax administration and management system, as the next budget proposes no new tax rather some exemptions in professional tax and property tax are expected. Target for PoR in the current fiscal year was set at Rs5.8bn.

The NWFP government is set to allocate record Rs39.4bn for Annual Development Programme (ADP) in the next financial year mainly focusing on the completion of ongoing projects.

An amount of Rs21.9bn will be set aside for core provincial development schemes, while remaining funds will be made available for foreign-funded, special and district development programmes.

According to sources, health, education, water supply and roads sectors will get major chunk of the development funds.

Construction of 147km new roads, 13 bridges, residential houses for the government officials within the premises of seven public sector hospitals, centres for drug addicts, destitute, baggers and vocational centres for women are part of next year’s ADP.

Moreover, provision of grants for 937 basic health units, parent teacher association and recruitment of 654 policemen are some of the other proposals in the next year budget.

On relief side, the provincial government will announce 15-20 per cent raise in the salary and pension of the public sector employees that will put an extra burden of Rs3.2bn on the provincial kitty.

Likewise, more incentives for the old age citizens of the backward districts and unemployed educated youth are likely to be announced in the next budget.