KP govt leaves Centre behind, presents Rs1700b annual budget today

In an unprecedentedly move, the Khyber Pakhtunkhwa (KP) government is set to present its annual budget of Rs1700 billion for the fiscal year 2024-25 in the provincial assembly at 3 PM ahead of the federal budget today (Friday).
According to the 24NewsHD TV channel, prior to the assembly session, the provincial cabinet of Cheif Minister Ali Amin Gandapur will approve the budget proposals.
The sources in the finance department said the budget includes a proposal to increase salaries of government employees by 15-20%.
The total volume of the provincial budget exceeds Rs1700 billion, with over Rs320 billion allocated for developmental projects in both settled and tribal districts.
In line with the agreement with the IMF, the provincial budget will aim for a surplus of up to Rs100 billion.
Key allocations include more than Rs28 billion for the health card scheme and up to Rs2.5 billion in subsidies for the BRT system. The sources said the KP government made a decision that instead of imposing new taxes, the existing ones will be adjusted while there is a proposal of reducing various taxes on land transfers from 6% to 3%.
The provincial government plans to establish a company for mining operations, ensuring the province retains 30% of the revenue from minerals and an excise duty on companies purchasing tobacco is also proposed along with an increase in BRT fares by Rs5 to Rs10 per stop.
Over Rs10 billion are proposed for loans and other support for the youth on easy terms while 20% of the development fund is suggested to be allocated to local governments.
The government has decided not to impose a tax burden on merged districts, and recommendations to expand the tax net will be presented.

KP Finance Advisor raises question over provincial financial autonomy

Advisor to the KP government Muzammil Aslam raised a question over the financial autonomy of the provinces and said the KP government is making history by presenting the budget ahead of the federal government with a focus on public service improvement, increased provincial revenue, and resource mobilization.
He said this budget, like the previous year, has been prepared responsibly to ensure it remains surplus, emphasizing enhancements in public services and maximizing provincial revenue and resource activation.

Reporter: Amir Shehzad