The provincial government of the Khyber Pakhtunkhwa (KPK) is likely to present a tax-free budget of approximately Rs.300 billion for the financial year of 2010-11 with 40 percent increase in the annual development programme (ADP) of the province.
This was stated by Provincial Minister for Finance, Engineer Mohammad Hamayun Khan while talking to Associated Press of Pakistan (APP).
The budget would be presented in the provincial assembly on Saturday June 12. Under the 7th National Finance Commission (NFC) award the resources of the province have been increased and the annual budget for financial year 2010-11 is likely to be near the amount of Rs.300 billion, said the minister.
He said that a large portion of the developmental budget would focus on the development of social sector with priority on the provision of health and education sector facilities to the people of the province.
He said that the development of infrastructure facilities is also the priority of the provincial government.
The finance minister said that the government is making efforts for generating employment opportunities and giving a people friendly budget for the province.
Regarding increase in the resources of the province, he said that under 7th NFC Award the share of the province in federal divisible pool has been increased and they will now receive 14.62 per cent of the federal resources.
Similarly, he said that another amount of Rs.15 billion would be paid from the undivided divisible pool in head of expenses in the war on terror.
To a question, regarding the revival of the industrial sector, he said that before the budget the provincial government had consulted the business community and their input has also been included in the budget document.
However, he said that Prime Minister Yousuf Raza Gilani has already announced a big package for the economic revival of the province.
The provincial minister for finance said that the resources of the province would be utilized for exploitation of the hydropower potential of the province.
He said that the production of the hydropower will not only help overcome the prevailing energy crisis of the country, but will also create a permanent mean of revenue for the province.
He said that a handsome amount would be sanctioned for the utilization of the hydropower generation sector.
He said that some schemes in this regard had already been approved, while some were in the process of the feasibility studies.
Energy and Power, he said is important sector of the province and its development is the dire need of the province. He said that first installment of Rs.25 billion in head of the outstanding amount in head of the net profit on electricity would arrive in first week of the next financial year.
He said that the provincial government is taking keen interest in the reconstruction and rehabilitation of the militancy and terrorism affected Malakand Division. In this regard, he was hopeful that federal government and donor agencies would extend complete cooperation to the provincial government.
To another question regarding burden of the 50% increase in the salaries of the government employees, he said that the matter was under consideration in the provincial level.
Story first published: 9th June 2010