KP budget: Rs1,754bn outlay seeks up to 15% salary hike, tobacco tax

PESHAWAR: Khyber Pakhtunkhwa Governor Faisal Karim Kundi has summoned the budget session of the Provincial Assembly at the request of the provincial government on May 24 at 3 pm.

In the upcoming session, the Khyber Pakhtunkhwa government will present the provincial budget for the new financial year 2024-25.

According to government sources, the KP finance department has sent proposals regarding the provincial budget and annual development programme (ADP) to Chief Minister Ali Amin Gandapur for approval.

For the new financial year, the total size of the provincial budget has been proposed at Rs1,754 billion. The budget also proposed allocating Rs200 billion for the ADP. Additionally, an increase of 10 to 15 per cent increase in the salaries of government employees has been proposed in the budget.

The finance department has submitted a summary to the chief minister for approval. After reviewing the budget proposals and recommendations, the budget will be finalised and presented in the provincial cabinet meeting tomorrow.

According to Provincial Finance Adviser Muzammil Aslam, there are no plans to impose taxes in the Malakand Division and the merged tribal districts in the new fiscal year’s budget.

He said that the decision to impose taxes will be made after consulting with local elders and elected assembly members.

He mentioned that the federal government should also impose taxes in these areas only after consultation with the provincial government.

The provincial finance adviser stated that there was great news regarding salaries and pensions for government employees in the new fiscal year’s budget.

According to KP Excise Minister Mian Khaliqur Rehman, property tax rates will be reduced in the new budget, while it has been decided to impose provincial excise duty on tobacco.

He confirmed that there was no plan to impose taxes in the merged districts in the new budget.