KP unveils Rs1.7tr budget for FY 2024-25

PESHAWAR: Khyber Pakhtunkhwa (KP) Finance Minister Aftab Alam has unveiled the provincial budget for the next fiscal year 2024-25, with a total outlay of Rs1.6 trillion, ARY News reported on Friday.

A special cabinet meeting, held under the chairmanship of KP Chief Minister Ali Amin Gandapur, approved the budget for the fiscal year 2024-25, as well as the Annual Development Program and the Finance Bill.

The assembly session began following a delay of two hours owing to lack of quorum. Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur is also in attendance.

At the outset of his speech, Finance Minister Aftab Alam said that the PTI-led provincial government has been working tirelessly to develop the province, emphasising that education was the fundamental right and government’s top priority.

He emphasised that investing in children’s future is the best investment, noting that and thousands of new schools have been built and existing ones were upgraded. “New teachers have also been hired to improve education standards”, Alam said.

Highlighting KP government’s efforts to improve healthcare, the minister noted that they provided Sehat Card scheme to the public for free treatment. “76 hospitals have been upgraded to provide better healthcare facilities”, he added.

Aftab Alam acknowledged that peace and security are the biggest issues in the province, and concrete steps have been taken to address these issues. “The Police Act has been enforced, making KP Police autonomous and professional”.

He said the government also increased its own revenue in recent years, but the federal government still owes the province Rs1800 billion, which has not been released yet.

Speaking of the KP budget 2024-25, the minister said it was prepared in consultation with the business community, with a focus on increasing revenue through taxation rather than relying on federal funds.

He announced plans to introduce a fixed sales tax on marriage halls, while reducing the commercial property tax from 16 per cent to 10pc.

The minister also proposed reducing the property tax on industrial units from Rs2.5 per square foot to Rs10,000 per kanal. He also proposed reducing the tax on land transfer from 6.5pc to 3.5pc.

Alam noted that the public will receive a 3pc tax relief on land transfer, and the purchase and sale of stamp papers will be made easier.

The minister highlighted that 80pc of the country’s tobacco is produced in KP, and the government is working to increase revenue from this sector. He said that the government set a target to collect Rs93.50 billion under revenue mobilisation plan.

Furthermore, the provincial government also announced a 10pc increase in basic pay of its employees and pensioners besides increasing minimum wages to Rs36,000 from existing Rs32,000.

MAJOR POINTS

Tax rate on hotels reduced to 6pc

Taxes on private hospitals, medical stores, and medical professionals reduced from 16pc to 5pc

Fixed sales tax proposed on marriage halls

Commercial property tax reduced from 16pc to 10pc

Reduction in property tax proposed

Tax on land transfer reduced from 6.5pc to 3.5pc

Target set to collect Rs93.5bn under Revenue Mobilisation Plan

10pc increase in basic salaries and pensions

Minimum wages increased to Rs36,000

Major allocations

The Khyber Pakhtunkhwa government announced Rs416.30 billion under Annual Development Program (ADP) for the next fiscal year, including Rs120 billion for provincial ADP, Rs24 billion for district ADP, Rs36 billion for merged districts ADP and Rs79.29billion for Accelerated Implementation Program (AIP).

The government also proposed Rs12 billion for Ehsas Employment Programme, Youth Programme and Skills programme.

According to the finance minister, 5,000 new houses would be constructed under Ehsas Own House Programme for which Rs3 billion announced.

Similarly, Rs10 billion has been earmarked for CRBC Lift Canal to irrigate three lakh acres lands, launching of Tank, Chodran and Daraban dams, allocation of Rs26.90 billion for wheat procurement, Rs6.50 billion for construction of roads, Rs2.50 billion for emergency works, construction of Dir and DI Khan motorway under public private partnership mode, construction of road to link DI Khan with Hakla motorway and 470 megawatt Lower Spat Gah project.

Education sector: The government announced Rs362.68 billion for the next financial year which is 13% more compare to last fiscal year.

Similarly, Rs35.82 billion set aside for higher education that was 11% more than last financial year. Besides establishment of 30 degree colleges and over 350 schools in rent buildings, the KP government proposed Rs326.86 billion for elementary and secondary education.

Heath: Rs232.08 billion proposed for health sector which was 13% more compare to last fiscal year while air ambulance service and Peshawar Institute of Cardiology’s Satellite Centre for southern districts of KP announced.

Besides proposing Rs10.97 billion for purchase of medicines, Rs28 billion earmarked for Sehat Card Plus programme for settled districts and 9 billion for merged tribal districts.

Social welfare: The government increased budget of Social Welfare Department to Rs8.11 billion, while shelter homes program budget jacked up to Rs600 million against 300 million in last fiscal year.