PESHAWAR, June 7: The Khyber Pakhtunkhwa government is set to stretch itself out by pitching its next financial year’s Annual Development Programme at over Rs97 billion endeavouring to consolidate its position in an election year.

Provincial Finance Minister Engineer Humayun Khan will unveil his government’s budget and annual development programme (ADP) for the next financial year when Khyber Pakhtunkhwa Assembly meets for the budget session here on Friday afternoon. The size of the next ADP is reportedly up by 14.5 per cent as compared to the actual size of the outgoing financial year’s development plan.

The government, according to a finance officer, has decided to allocate Rs74.2 billion for the provincially funded component of the new ADP.

The remaining amount of Rs23 billion for the new ADP, according to sources, would be arranged through foreign funding, of which a substantial part would come as loans.

“The government is committed to allocate greater amount of funds to the ongoing development works, continuing with its current policy,” said an official.

The new ADP’s size reflects an increase of over Rs17 billion as compared to the original size of the outgoing financial year’s ADP that had initially been fixed at Rs85.14 billion, including Rs69 billion allocated from the provincial budget and remaining Rs16.1 billion from foreign assistance.

However, the provincial government, according to sources, has not been able to ensure 100 per cent implementation on its current financial year’s ADP. “The government expects that its total development expenditure would end up at around Rs79 billion, about seven per cent less than the original size of the ADP for the financial year 2011-12,” said an official.

In continuation with the current practice, the new development plan is set to thinly distribute funds among the development projects to be executed in the next financial year.

On the receipts side, the government will show a total amount of Rs241.75 billion to be received as federal transfers; including Rs83.5 billion tax on income, Rs93.9 billion sales tax, Rs10.2 billion federal excise duty (net of gas) and Rs22 billion on account of customs duty.

Similarly, against the cumulative straight transfers to be disbursed by the federal government in the 2012-13 financial year, the provincial government will receive Rs3.7 billion on account of gas development surcharge, Rs4.2 billion as royalty on natural gas, Rs11.7 billion on account of royalty on crude oil and Rs2.5 billion as its share from the excise duty on natural gas.

Besides, the province is set to receive Rs9.9 billion on general sales tax on services in the financial year 2012-013.

The total size of the province own receipts, according to sources, is expected to be set at around Rs8.5 billion, up from the Rs7.34 billion estimated for the outgoing financial year. An amount of Rs25 billion income would be reflected as net hydel profit transferred to Khyber Pakhtunkhwa from the federal government in line with an agreement between the two sides.

The province, according to an official document, will reflect repayments of Rs1.1 billion on account of interest payment against cash loans taken from the federal government and another amount of Rs1.08 billion interest payment against the loans payable to foreign lenders.

Besides, the province is set to reflect an allocation of Rs553 million to be repaid against the principal amount of loans payable to the federal government and another amount of Rs3.69 billion would be earmarked to clear part of the foreign loans payable by the provincial government.