Khyber Pakhtunkhwa government here on Friday presented a Rs1,118.3 billion balanced budget for financial year 2021-22, having a record allocation of Rs 371 billion for annual development program (ADP) and Rs747.3 billion for current budget expenditure. The KP government has announced a record 37pc increase in salaries of all those employees who did not take special allowances from the Government. Presenting the third budget of KP Government in KP Assembly, Finance Minister, Taimur Salim Jhagra said out of the total budget allocation, Rs919 billion earmarked for settled districts and Rs199.3 billion for development of merged tribal districts during FY 2021-22. Out of total Rs371 billion ADP, KP Government earmarked Rs270.7 billion for settled districts and Rs100.3 billion for merged tribal districts. Likewise, Rs648.3 billion earmarked for settled districts and Rs 99 billion for merged districts in total allocation of Rs747.3 billion for current budget expenditure. The minister said the present budget was based on five main pillars including a record increase in salaries of government employees, development budget, devoted services to people, increasing KP’s own resource revenue and introduction of goal oriented reforms and innovation in the overall governance system. He said two innovative approaches ‘development plus budget’ and ‘service delivery budget’ were being introduced under which Rs500 billion would be spent on former focusing on mega projects such as Sehat Plus Cards, provision of furniture to Govt schools and increase in medicines budget to public sector hospitals while Rs424 billion out of Rs747 billion would be spent on the latter with priorities to payment of salaries of doctors, nurses, and teachers besides provision of medicines to hospitals and fuels to Rescue1122 ambulances. About generation of income and revenue during 2021-22, the minister said Rs1018 billion revenue and income target was set for FY 2021-22 that would be achieved from different financial resources, duties and taxes. He said Rs475.6 billion would be collected through federal taxes, Rs57.2 billion through federal divisible pool of 1pc share under terrorism affected province, Rs26.5 billion under Gas and Oil royalty and surcharge (direct transfer), Rs74.7 billion under hydle new profit (according to MoU 2015-16) and arrears, Rs75 billion for provincial tax and non-tax revenue, Rs85.8 billion through foreign development assistance (for settled areas) and Rs3.3 billion foreign development assistance (for merged areas), Rs187.7billion under special assistance grant for the merged areas and Rs132.5billion from other revenue resources. About details of expenditure budget during FY2020-21, the minister said a total of Rs374 billion would be spent on salaries including Rs 60 Billion in merged areas and Rs314 billion in settled districts. Similarly Rs92.1 billion would be utilized for payment of pension including Rs0.1 billion for merged areas and Rs 92 Billion for settled districts. Besides salaries, Rs203.9 billion would be spent for operation and maintenance expenditures, emergencies and district expenses including Rs38.9billion for merged areas and Rs164.9 billion while Rs74.4billion for other current expenditures. Rs 244.6 billion proposed for expenditures under Provincial Development Program including Integrated Implementation Program (AIP) for merged areas, he said, adding Rs17.4 billion earmarked for Annual Development Program including Rs2.4 billion for merged areas and Rs 85.8 billion for settled districts while a record Rs 19.9 billion to be obtained from Federal government PSDP. The salaries of all government employees except those who didn’t get special allowances are being increased to 37% including 20% increase in Functional or Sectoral Allowance, 10% increase in Adhoc Relief Allowance, 7% in house rent for those employees who don’t benefited from government’s accommodation scheme. Jhagra said 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 record 13.8 percent of total budget in 2021-22. To overcome pension expenses, he said two proposals including an increase in upper age limit of Govt employees i.e. 55 years for early retirement up or completion of 25years service were under consideration that would save Rs12billion per year. Similarly, Rs1billion per year would be saved from change in the pension rules under which widow, children and parents of deceased employees would be entitled for pension benefits. The minister announced that minimum wages of labourers and daily wagers were being increased to Rs21,000. Khyber Pakhtunkhwa government has announced spending of Rs. 2.7 billion to enhance working of Basic Health Units (BHUs) and Rural Health Centers (RHCs) of the province in the financial year 2021-22. Provincial Minister for Finance, Taimur Salim Jhagra during his budget speech informed the house that the government would spend Rs 1.7 billion rupees to enhance healthcare facilities in 200 BHUs and to strengthen all BHUs of the province. He said that Rs 800,000 would be spent on upgrading the basic structure, Rs. 450,000 on purchase of medicines and necessary equipment and Rs. 1.3 million to improve service delivery. Similarly, Rs. one billion would be spent on provision of needed facilities in 50 Rural Health Centers (RHC) and strengthening of all the RHCs in various areas of the province. Minister informed the house that Rs. 1.2 million would be spent on improvement of infrastructure of RHC, Rs. 1.5 million to purchase medicines and Rs. 2.6 million to improve service delivery. The government of Khyber Pakhtunkhwa has allocated Rs 1.42 billion for improving service delivery in Water and Sanitation Services Companies of the province in the year 2021-2022. During budget speech, provincial finance minister, Taimur Salim Jhagra informed the house that Rs. 1.42 billion have been earmarked in fiscal year 2021-2022 to increase performance WSSCs. He informed the house, that Rs. 255.3 million were allocated for WSSC Abbottabad, 148.3 million for Bannu, 200.8 million for D.I.Khan, 216.7 for Kohat, 356.6 for Mardan and 242.4 for sanitation company Swat. The government has increased Science and Technology budget by 137 percent, allocating Rs2.5 billion with major projects including establishment of citizens facilitation centers, early age childhoods program, and construction of model science laboratories and schools. Similarly, Rs48.2 billion would be spent on construction of 3,000km roads including Peshawar-DI Khan motorway, Swat Motorway Phase II, Haripur Bypass and Peshawar-Torkham Motorway during FY 2021-22. A record Rs 13.2 billion allocated for the agriculture sector with major projects includes promotion of olive cultivation, establishment of trout fish villages in Malakand and Hazara divisions and Rs800 million for Prime Minister’s Industrial Emergency Program. The government decided to revive Torkham Safari Train Service to promote tourism in Khyber Pakhtunkhwa. Rs1billion earmarked for development and welfare of women with major projects include revival of women commission with allocation of Rs 100 Million budget, establishment of Cadet College for girls in Mardan, allocation of 5% quota for women in SIDP ‘Akhowat’ Program and provision of interest-free loan to all register women entrepreneurs. Rs100 million grant is proposed for senior citizens enabling them to get treatment in hospitals’ special counters and wards. The minister said the government believed in uniform development of all districts and announced to establish Pak-Austria Educational Institute in Haripur, Hattar Industrial Zone, Pakistan Digital City in Haripur, 870 MW Seki-Kinari Hydropower Project, 300MW Balakot HPP in Hazara Division while in merged areas, Mohmand Marble City, and Kurram-Tangi and Bara Dams would be constructed. In Southern districts of Khyber Pakhtunkhwa, Peshawar-DIKhan Motorway, new buildings for Bannu Medical College, Chashma Right Left Canal, Bannu Economic Zone, Daraband Economic Zone in DIKhan and University of Lakki Marwat would be established. Swat-Motorway Phase-II, Peshawar-DIKhan Motorway, Small Industry Estate, establishment and setting up of a Special Technical Zone would be achieved through public and private partnership through collaboration of government and private sector. The development budget of Culture and Tourism Department has been increased to Rs 12 Billion against Rs 2 Billion in last fiscal year under which Integrated Tourism Zones, Hund Water Park on 400 Kanal land, establishment of Rs 3.8 billion innovation fund, first motor sports arena of Pakistan and construction of Arbab Niaz Stadium in Peshawar and Kalam Cricket Stadium would be completed. KP government has allocated Rs 1 Billion for local bodies elections, Rs2.8 billion for extension in Rescue1122 service in tehsil level besides Rs 60million earmarked for purchase of 50 vehicles and other equipment for 25 TMAs of merged areas. Rs 1420 Million set aside for Water and Sanitation Services Program, construction of new general bus stands on 345 Kanal in Peshawar, completion of Peshawar Northern Bypass, establishment of 2900 tube-wells to provide clean drinking water to 8.4million people, construction of lawns and roadside green belts in 25 cities and pavement of streets on 480,000 square feet under civil development portfolio would be achieved. The Minister said a 111 percent increase in allocated amount for provision of medicine in hospitals of settled districts were registered besides establishment of four hospitals under Public Partnership with allocation of Rs 40 Billion. Likewise, Rs10.5 billion allocated for investment to improve services in category-C hospitals in KP while Rs 25 billion for Medical Teaching Institutions and Rs7 Billion for medical colleges, having a total investment of Rs 42 Billion allocated. He said Rs1billion would be spent on strengthening, rehabilitation and provision of round the clock services to patients at Rural Health Centers in KP and Rs1.2million for up-gradation of basic structure, Rs1.5 million for increase in provision of medicines and Rs2.6 million for better health services in the province. Medical insurance plan for the government employees has been announced under which reimbursement facilities to those officials, who get treatment from selected clinics, and OPDs would be made. Health Facilitation Program is being expanded and over 300,000 new families would be registered in financial year 2021-22, the minister said adding health budget has been enhanced to Rs 21 Billion with latest facilities of liver transplant that was made part of Sehat Cards Plus program under which up to Rs 50 Million would be spent on each patients. He said Rs1billion for liver transplant and health budget of merged areas has been enhanced to Rs 1 Billion. Similarly, Rs 14.9 billion allocated for rehabilitation of all major hospitals in Khyber Pakhtunkhwa. Model institutes for street children would be established in Peshawar, DIKHAN and Swat districts besides establishment of Rehmat Ul-lil-Alameen fund for assistance of special children. Rs230 million allocated for education scholarship for merged areas in Higher Education Department and Rs100million administrative budget for supply of furniture and other necessary items and 300 colleges would be given premier status and construction of ongoing 40 colleges would be completed. In elementary and secondary education, the minister said 10,000 model schools would be constructed under early childhood education program in KP and Rs4.5billion to be spent on supply of furniture to government’s schools, 97 IT laboratories equipped with IT equipments, 276 science laboratories would be constructed while 4,300 school teachers to be recruited in merged areas. Similarly, 20,000 school teachers and 30,000 school leaders would be appointed in Khyber Pakhtunkhwa and that 21000 schools would be constructed, rehabilitated and up-graded that would create enrollment space for 120,000 students. The Government of Khyber Pakhtunkhwa would spend more than Rs. one billion for welfare and empowerment of women during 2021-2022. During budget speech, Provincial Finance Minister, Taimur Salim Jhagra informed the House that Rs. 100 million would be spend for empowerment of women and to further increase output of women commission. He said that 20 percent of microfinance loans in the Bank of Khyber would be allocated for women and 25 percent quota in one billion funds of the Akhuwat program of Small Industrial Development Bank would be given to women. The Minister said that the allocated fund of one billion rupees would also be utilized to establish girls cadet college at Mardan, provide easy loans for women associated with small business and empowerment of women in merged areas. Jhagra said that Rs. 450 million were allocated to bring minorities in the national mainstream, Rs. 30 million allocated for imparting professional education to minority community members. He said that religious places of minorities would be revamped and land would be furnished for graveyards and Shamshan Ghats. The Government of Khyber Pakhtunkhwa would spend more than Rs. one billion for welfare and empowerment of women during 2021-2022. During budget speech, Provincial Finance Minister, Taimur Salim Jhagra informed the House that Rs. 100 million would be spend for empowerment of women and to further increase output of women commission. He said that 20 percent of microfinance loans in the Bank of Khyber would be allocated for women and 25 percent quota in one billion funds of the Akhuwat program of Small Industrial Development Bank would be given to women. The Minister said that the allocated fund of one billion rupees would also be utilized to establish girls cadet college at Mardan, provide easy loans for women associated with small business and empowerment of women in merged areas. Jhagra said that Rs. 450 million were allocated to bring minorities in the national mainstream, Rs. 30 million allocated for imparting professional education to minority community members. He said that religious places of minorities would be revamped and land would be furnished for graveyards and Shamshan Ghats. The Khyber Pakthunkhwa government has allocated Rs 10.4 billion to reduce regional disparity through “District Development Plans” in financial year 2021-22. Finance Minister, Taimur Khan Jhagra in his budget speech informed the Khyber Pakthunkhwa Assembly that total cost of the District Development Plans is Rs 70 billion. He said the provincial government under the leadership of Chief Minister Mahmood Khan is committed to equal development of all districts with more focus on areas that were neglected in the past.