Khyber Pakhtunkhwa Budget 2024-25: A Roadmap for Development and Prosperity
PESHAWAR, May 24 (FindlyJobs News): The Khyber Pakhtunkhwa Minister for Finance, Aftab Alam, presented the annual budget for the fiscal year 2024-25, totaling Rs 1754 billion, with a surplus of Rs 100 billion.
Budget Highlights
The government has projected expenses of Rs 1,654 billion. Minister Aftab Alam stated during the budget speech that the 2024-25 budget, as directed by Chief Minister Ali Ameen Gandapur, focuses on social protection, peace, employment opportunities, and economic development.
Salary and Pension Increases
The government has proposed a 10 percent increase in both salaries and pensions for government employees and has raised the minimum wage from Rs 32,000 to Rs 36,000.
Revenue Projections and Allocations
The KP government expects to receive Rs 1754 billion from various sources, including:
- Rs 1212.036 billion from the federal government through the Federal Tax Assignment.
- One percent of the divisible pool for the war on terror.
- Royalties and surcharges on oil and gas, windfall levy, and net hydel profit.
The province aims to enhance its income through a mobilization plan targeting Rs 93.5 billion in revenue for 2024-25. Instead of increasing taxes, the KP government plans to broaden the tax net, implementing reforms in sales tax, property tax, tobacco tax, cess, and other taxes.
Tax Reforms
The budget includes several tax relief measures:
- Reduction in sales tax on different online services.
- Decreased sales tax on hotels from eight percent to six percent, with hotels required to use the Restaurant Invoice Management System.
- Fixed sales tax rate for wedding halls.
- Property tax relief, reducing tax per kanal for factories from Rs 13,600 to Rs 10,000.
- Reduced tax on commercial property from 16 percent to 10 percent, and to five percent for private hospitals, medical stores, and health-related businesses.
- Increased tobacco development cess to boost income from tobacco production.
- Reduction in provincial tax on property transfers from 6.5 percent to 3.5 percent.
Sectoral Allocations
- Education: Rs 362.7 billion, with Rs 35.8 billion for higher education and Rs 326.9 billion for elementary and secondary education, marking a 13 percent increase.
- Health: Rs 228.8 billion, a 14 percent increase.
- Peace and Order: Rs 140.6 billion, a 15 percent increase.
- Roads and Infrastructure: Rs 60.5 billion, a three percent increase.
- Social Welfare: Rs 8.1 billion, a six percent increase.
- Minerals: Rs 2 billion, a two percent increase.
- Industry and Commerce: Rs 7.5 billion, a 17 percent increase.
- Tourism: Rs 9.6 billion, a 25 percent increase.
- Agriculture: Rs 28.6 billion, a 54 percent increase.
- Energy: Rs 30.8 billion, a 67 percent increase.
Expenditure Breakdown
- Settled Districts: Current expenditure estimated at Rs 1093.087 billion, including provincial salaries, Health MTIs’ salary budget, Tehsil Salary, pension, and non-salary expenditures.
- Merged Districts: Current expenditure estimated at Rs 144.628 billion, covering provincial salary, Tehsil salary, pension, non-salary, and expenses for temporarily displaced persons.
Development Expenditures
The government has allocated Rs 416.284 billion for development expenditures, which include:
- Rs 120 billion for the Provincial Annual Development Program.
- Rs 24 billion for the District Annual Development Program.
- Rs 36 billion for the Merged Districts Annual Development Program.
- Rs 79.286 billion for the Accelerated Implementation Program (AIP).
- Rs 130.587 billion for foreign project assistance.
- Rs 26.411 billion for federal PSDP.
Conclusion
Minister Aftab Alam emphasized that the 2024-25 budget is not just a financial document but a roadmap for the province’s development and prosperity. It reflects the government’s commitment to social justice and gender equality. He concluded by thanking the finance and planning departments for their efforts in preparing the budget in a short time.