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PESHAWAR: Khyber Pakthunkhwa (KP) government today (Friday) presented Rs1,118.3 billion balanced budget for financial year 2021-22, having a record allocation of Rs 371 billion for annual development program (ADP).
Speaking on the provincial assembly floor, KP Finance Minister Taimur Khan Jhagra announced a record 37 percent increase in salaries of all those employees who did not take special allowances from government.
The minimum wage for labourers has been increased to Rs21,000. The provincial government also announced a 10 percent ad-hoc relief allowance for all employees and a 20 percent increase in the functional or sectoral allowance for all employees not drawing a special allowance.
The Finance Minister said out of the total budget allocation, Rs919 billion earmarked for settled districts and Rs199.3 billion for development of merged tribal districts during FY 2021-22.
Out of total Rs371 billion ADP, KP Government earmarked Rs270.7 billion for settled districts and Rs100.3 billion for merged tribal districts. Likewise, Rs648.3 billion earmarked for settled districts and Rs 99 billion for merged districts in total allocation of Rs747.3 billion for current budget expenditure.
The finance minister further said that the government was providing health facilities to the 7.2 million population of the province through health cards and Rs23 billion would be spent on the facility in the next year.
About generation of income and revenue during 2021-22, the minister said Rs1018 billion revenue and income target was set for FY 2021-22 that would be achieved from different financial resources, duties and taxes.
He said Rs475.6 billion would be collected through federal taxes, Rs57.2 billion through federal divisible pool of 1pc share under terrorism affected province, Rs26.5 billion under Gas and Oil royalty and surcharge (direct transfer), Rs74.7 billion under hydle new profit (according to MoU 2015-16) and arrears,
To overcome pension expenses, he said two proposals including increase in upper age limit of Govt employees ie 55 years for early retirement up or completion of 25years service were under consideration that would save Rs12billion per year.
Similarly, Rs1billion per year would be saved from change in the pension rules under which widow, children and parents of deceased employees would be entitled for pension benefits. The minister announced that minimum wages of labourers and daily wagers were being increased to Rs21,000.
