PESHAWAR: The Khyber Pakhtunkhwa (KP) government has proposed an annual development outlay of over Rs310 billion under the budget for the financial year 2020-21.
KP Finance Minister Taimur Saleem Jhagra will present the budget in the provincial assembly tomorrow (Friday) at 3pm.
According to finance department sources, the provincial budget contains Rs30.2 billion for education; Rs24.38 billion for health; Rs41.84 billion for construction of roads; Rs1.84 billion for agriculture, livestock and fisheries; Rs13 billion for energy; Rs2 billion for sports, tourism, cultural and youth affairs; Rs55 billion for local governments; Rs104 billion for settled areas, Rs24 billion for tribal districts; and Rs49 billion under the Tribal Districts Accelerated Implementation Plan (AIP).
Meanwhile, the provincial government has estimated to receive Rs404.76 billion under the National Finance Commission, Rs62 billion under net profit, Rs50 billion under ‘funds for war on terror’ and Rs25 billion as oil and gas royalty from the federation.
Sources said the KP government has further proposed Rs85 billion in foreign aid and loans, including Rs73 billion for settled areas and Rs12 billion (foreign aid) for tribal districts. In addition, it has proposed Rs16 billion for interest payment on loans, while it would be borrowing more than Rs44 billion from banks to cover the budget deficit.
The provincial government has proposed an allocation of Rs24 billion to fight coronavirus and its impacts.
According to sources, the provincial government has sought a reduction of Rs1.14 billion in the development budget as well as Rs47.73 billion in ongoing expenditure.
“The government, however, has proposed not to impose any new tax in the next financial budget keeping in mind the economic impact of Covid-19 pandemic,” an insider informed.