KP BUDGET 2021-22

 

The Khyber Pakhtunkhwa Finance Minister Taimur Saleem Jhagra announced budget on 18-06-2021 for the year of 2021-22 during the assembly session. 

The total budget of KP for 2021-22 is 1118.3 billion.

Chief Minister Mahmood Khan said the 2021-22 budget was aimed at resurgence and growth. the KPK Government are fully focusing on investing maximum resources in development of KP and providing quality services to the citizens of KP.

The Chief Minister said that due to successful handling of the covid-19 pandemic the government had a opportunity to present budget that focus on growing of economy and providing relief to the people.

He said, "We planned to introduce long overdue reforms on pensions, accountability and rewards of public servants; championing e-government and strengthening management of public finances".

The Finance Minister said that the budget are based on five main pillars:

• Record increase in salaries of government employees
• Development budget
• Devoted service to people
• Increasing provincial own resources revenue
• Goal-oriented reforms and innovation in overall government system.

The government announces the 37% increase in salaries for all those employees who is not taking any special allowances from the government.

Finance Minister said that Rs919 billion has been earmarked for settled districts and Rs 199.3 billion for the development of merged districts.

Out of total Rs371 billion ADP the province has earmarked Rs270.7 billion for settled districts and Rs100.3 billion for merged districts. Likewise Rs648.3 billion has been earmarked for settled districts and Rs99 billion for merged districts.

Finance Minister said, two innovative approaches, development plus budget and service delivery budget, were introduced for which Rs500 billion will be spent on mega projects like, Sehat plus Cards, provision of furniture to government schools and increase in medicine, budget to public sector hospitals. Rs424 billion will be spent on service delivery with priorities to payment of salaries of doctors, nurses and teachers besides provision of medicines to hospitals and fuel to Rescue ambulances.

Rs1,018 billion of income and revenue during the Fiscal year 2021-22 would be achieved from different financial resources, duties and taxes.

Minister said Rs475 billion would be collected through federal taxes, Rs57.2 billion through a federal divisible pool of 1% share under terrorism affected province, Rs26.5 billion under Gas and Oil royalty and surcharge, Rs74.7 billion under hydel new profit and arrears, Rs75 billion for provincial tax and non-tax revenue, Rs85.8 billion through foreign development assistance and Rs3.3 billion as foreign development assistance, Rs187.7 billion under special assistance grant for the merged areas and Rs132.5 billion from other revenue resources.

The detail of expenditure during FY2021-22 a total of Rs374 billion would be spent on salaries including Rs60 billion in merged areas and Rs314 billion in settled districts. Rs92.1 billion would be utilized for payment of pension including Rs0.1 billion for merged areas and Rs92 billion for settled districts.

The budget also allocates funds to construct, rehabilitate and upgrade over 2100 schools to increase enrollment capacity.

Rs244.6 billion was proposed for expenditures under Provincial Development Program including Integrated Implementation Program for merged areas, along with it Rs17.4 billion is being earmarked for the Annual Development Program including Rs2.4 billion for merged areas and Rs85.8 billion for settled districts while a record Rs19.9 billion is to be obtained from the federal government PSDP.

The salaries of government employees are being increased by 37% including a 20% increase in Functional Allowance, 10% increase in Adhoc Relief Allowance and 7% in house rent for those employees who do not benefit from government accommodation scheme.

Finance Minister said a 100% increase in pension expenditure has been witnessed in the last couple of years and the share of pensions, which was only 1% in 2003-04, had jumped to a 13.8 percent of the total budget in 2021-22.

The overcome pension expenses, he said two proposals including an increase in the upper age limit of government employees ie 55 years for early retirement or completion of 25 years of service  were under consideration that would save Rs12 billion per year.

Rs1 billion per year would be saved from a change in the pension rules under which widows, children and parents of deceased employees would be entitled to pension benefit. 

The Minister announced that the minimum wages of labors and daily wagers were being increased to Rs21000.

The Finance Minister said that and amount of Rs23 billion has been allocated for the health insurance scheme. He said that more than 7 million households can now receive free healthcare system in 35 districts of the province. he said the KPK has become the first province to roll out comprehensive health coverage for every citizen.

In economic achievements the province has attracted 50 million dollars of foreign investment by providing gas and electricity to Rashakai Economic Zone.