The budget envisages a surplus of Rs13 billion on the current revenue receipts-expenditure side, current expenditure of Rs54.5 billion and capital expenditure of over Rs14 billion.
The budget appears to have been prepared keeping in mind the upcoming elections as it unveils a plan to make over 13,450 appointments in different public sector departments in the next financial year.
Similarly, the provincial government has announced special measures to rehabilitate earthquake-hit people and social security scheme for senior citizens, educated youth and families of provincial government’s deceased employees.
No new tax has been levied under the new budget. However, upward revision of certain provincial taxes will help the government to marginally improve provincial receipts. The government hopes to raise the receipts from Rs4.67 billion in 2005-06 to Rs5.2 billion in the next financial year.
However, on the capital receipts and expenditure side, the government has estimated to face a deficit of over Rs3.8 billion, lending negative effect to the annual balance sheet and the surplus amount.
The government has estimated current revenue receipts for the next financial year at Rs67.5 billion — including federal tax assignments of Rs36.9 billion — straight transfers of Rs2.33 billion, special grant of Rs9.71 billion, provincial receipts of Rs5.2 billion, sales tax for district governments and cantonment boards Rs5.3 billion and net hydel profit of Rs8 billion.
The total current expenditure has been estimated at Rs54.5 billion, including Rs15.1 billion for general public services, Rs5.69 billion for public order and safety affairs, Rs3.56 billion for economic affairs, Rs320 million for environmental protection, Rs54 million for housing and amenities, Rs2 billion for health, Rs183 million for recreation, culture and religion, Rs2 billion for education services and Rs195 million for social security. Transfers to district governments have been estimated at Rs25.4 billion.
Though a surplus of Rs13 billion has been projected, it seems to be at the higher side at least by Rs2 billion as government income on account of net hydel profit is not likely to be more than Rs6 billion, but it has been projected at Rs8 billion.
Total capital receipts have been projected at Rs14.87 billion against which total capital expenditure will stand at Rs11.01 billion, leaving the government with a deficit of over Rs3.8 billion.
The surplus of Rs11 billion has, however, been possible because of an increase in the NWFP’s share under the federal divisible pool.
The government plans to appoint 6,900 teachers. As many as 3,181 new posts will be created for colleges, 2,500 in the police department and 765 in the health department, which will recruit 1,400 nurses and 722 female technicians.
Fresh appointments will lead to a manifold increase in the establishment cost which will eat up a substantial amount of the surplus amount.
Compliance with the federal government’s decision to increase government employees’ salary will involve financial implications of Rs3.3 billion for the provincial government, which will take the annual salary bill to over Rs25 billion.
Announcing measures for the post-quake rehabilitation, Mr Haq said Rs15.33 billion had been allocated for establishment of 2,755 educational institutions, Rs2.1 billion for 166 dispensaries and hospitals, Rs1.34 billion for 1,557 drinking water schemes and Rs6.75 billion for 3031km roads in the affected areas.
Under the social security schemes, senior citizens over 70 years of age will get Rs500 monthly allowance and students having completed post graduation from government-run universities and colleges Rs1,000 monthly allowance for one year after completing the studies.
The families of provincial government employees, dying during service, will get monetary assistance according to their pay scale. For the employees of grade 1 to 4, Rs200,000 will be paid; for those in grade 5 to 10 Rs300,000, for those in grade 11 to 15 Rs400,000, for the employees of grade 18 and 19 Rs800,000 and for those in grade 20 Rs1 million.
Families of the deceased employees who had availed loan from the Bank of Khyber will be exempted from payment of interest and 50 per cent of the principal loan amount will be waived.
The bank’s lending scheme, which was launched last year to extend interest free loans to the employees of grade 1 to 5, will now cover employees in grade 1 to 15.
Top positions holders from among the students of the five boards of Wafaq-ul-Madaars will be given financial rewards. The top position holder will get Rs25,000, second Rs20,000 and third Rs15,000.
The minister also presented revised estimates of development and non-development expenditure for the outgoing financial year ending on June 30.