Khyber Pakhtunkhwa’s Rs 1,754 billion budget: key allocations, details revealed

PESHAWAR: HUM News has obtained the annual budget documents for Khyber Pakhtunkhwa ahead of the official presentation today. The budget for the fiscal year 2024-25 is set at Rs 1,754 billion, with a surplus of Rs 100 billion. The province’s expenses are projected to be Rs 1,654 billion.

The Khyber Pakhtunkhwa government expects to receive Rs 108 billion from the federal government for the war on terror, Rs 46 billion for vent fall levy, and Rs 33 billion as net hydel profit. Additionally, the province anticipates receiving more than Rs 78 billion in net hydel profit arrears.

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The budget allocates Rs 630 billion for salaries in provincial and merged districts, with Rs 166 billion earmarked for pensions. The proposal includes Rs 55 billion for salary and non-salary expenses of Medical Teaching Institutions (MTI) hospitals and Rs 144 billion for the merged districts.

The development budget stands at Rs 259 billion, with Rs 24 billion allocated for district annual development plan (ADP), and Rs 36 billion for merged districts ADP and Rs 79 billion for Accelerated Implementation Program (AIP).

Additionally, Rs 130 billion are earmarked for projects supported by external aid, and Rs 26 billion for federally supported ongoing projects.

For the police department, over Rs 3.35 billion are proposed, while the Department of Jails is allocated more than Rs 250 million. An increase to Rs 2 billion is proposed to improve prisoner meals, and over Rs 5 billion are allocated for the Communication and Works (C&W) Department.

Public health engineering is set to receive more than Rs 14 billion, while Rs 190 million are allocated for the Housing Department, over Rs 720 million for Sports and Culture, and more than Rs 1 billion for tourism.

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The health department is allocated over Rs 70 billion, while the corresponding education wing gets Rs 250 billion proposed for primary and secondary education, and Rs 22 billion for higher education.

Furthermore, the provincial budget, presented by Finance Minister Aftab Alam Advocate, includes a 10 per cent salary increase for government employees.

On the revenue side, the estimated income from federal revenues is Rs 1,212 billion, with provincial revenues projected at Rs 93 billion, and other revenues at Rs 31 billion. The income for merged districts is estimated at Rs 259 billion, and foreign-aided projects at Rs 130 billion.

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The net profit from hydropower is expected to be Rs 33 billion, with Rs 78 billion from hydropower arrears.

Ongoing administrative district expenses are set at Rs 1,093 billion, including salary and non-salary expenses. The budget also includes Rs 28 billion for health cards and Rs 14 billion for public health.

Proposals include fare increases for the Peshawar BRT bus service by Rs 5 to Rs 10 and a new tax on certain businesses. The new budget for Khyber Pakhtunkhwa is projected to be in Rs 100 billion surplus.