ISLAMABAD: Minister for Kashmir and Gilgit-Baltistan Affairs Mian Manzoor Wattoo presented on Saturday AJK Council’s budget estimates of Rs8.352 billion for 2011-12 and revised estimates of Rs8.632 billion for 2010-11.

Announcing the budget at AJK Council’s meeting here, he said that receipts target was proposed to be Rs6.192 billion, including Rs6 billion as income tax collection.

The development expenditure is estimated at Rs2.2 billion despite acute financial crunch. The operational expenses are proposed at Rs970 million.

This expenditure is 12 per cent higher than that of the last year’s non-development expenditure necessitated by substantial increase in pay and allowances proposed to be allowed on the analogy of the government of Pakistan.The AJK Council’s major source of revenue is income tax collection.

The net receipts are distributed between the Azad Kashmir government and the AJK Council in the ratio of 80:20.

The 80 per cent share of net collection of income tax is released to the AJK government on monthly basis through the AJK Council budget.Giving details of the last year’s budget, Mr Wattoo said the AJK Council set the revenue target of Rs5.796 billion out of which the income tax target was Rs5.5 billion.

He said that an amount of over Rs6 billion was collected because of professional and concerted efforts of taxation officers and AJK Council Board of Revenue.

The AJK Council approved projected expenditure of Rs9.007 billion for 2010-2011.

The deficit of Rs3.210 billion was proposed to be met through disinvestment of council’s investments, withdrawal of funds from council’s consolidated fund, adopting austerity measures and surpassing the income tax target.

The actual deficit, however, remained Rs2.575 billion.

Addressing a press conference, the minister said Azad Kashmir had a potential to generate 20,000MW of electricity and more funds from the centre were required to undertake hydel power projects.He said that international and local investors would be encouraged to invest in AJK by setting up small and medium industries.

He said that steps would also be taken to promote tourism and exploit the potential of mineral exploration.