KP finance minister presents Rs923 billion budget for FY 2020-21

PESHAWAR: The finance minister of Khyber Pakhtunkhwa (KP), Taimur Saleem Jhagra, has unveiled ‘tax-free’ Rs923 billion budget for the fiscal year of 2020-21, ARY News reported on Friday.

KP finance minister Taimur Saleem Jhagra presented the budget 2020-21 in the provincial assembly today. During his speech in the KP Assembly, Jhagra said that the coronavirus pandemic gave negative impact on the global economy and it has also affected the provincial revenues.

The KP budget is focused to improve the healthcare system of the province in view of the pandemic crisis, he added. The present budget is tax-free and the government maintained its allocations for development schemes despite facing a financial crisis, said the finance minister.

He said that an emergency fund of Rs24 billion has been established to cope with the challenges of coronavirus besides allocating Rs124 billion funds for the health sector. The province will overcome the shortage of staff, medicines and medical equipment in the hospitals, as well as issue health card to each citizen. Rs15 billion has been allocated to fight the pandemic by the provincial government.

“The services of the private sector will be acquired for waste management. Special measures have been recommended for the promotion of business activities and a reduction of sales tax on 27 commodities.”

“The estimation of overall expenditures is Rs923 billion in the budget 2020-21, whereas, over Rs317 billion is allocated for development projects. Rs152 billion will be spent on secondary education and Rs54 billion is allocated for Khyber Pakhtunkhwa (KP) police forces and home ministry.”

Regarding the other expenditures, Jhagra said that Rs28 billion for local government, Rs19 billion for higher education and Rs15 billion for irrigation projects will be spent in the next year. The allocation of Rs49 billion was made for a 10-year programme for the uplift of tribal districts and a total of Rs24 billion will be spent under annual development programme for the merged tribal areas.

According to the budget document, the government has allocated Rs319 billion for the annual development programme which will also include 85 projects to be initiated with foreign aid.

The government will acquire Rs44 billion from the local banks and Rs477 billion will be given by the centre, whereas, the estimation of KP’s income in term of electricity is Rs58 billion and provincial revenue is Rs49 billion.

Rs83 billion funds were allocated for the uplift of tribal districts, Rs274 billion for salaries and Rs86 billion for the payment of pension.