Khyber Pakhtunkhwa government on Monday presented its Rs 1.332 trillion budget for 2022-23.
KP Finance Minister Taimur Saleem Jhagra presented the budget, which was his final one in office. He said that KP was a province beset by terrorism; however, now the province has turned into a hub of investment.
“This is the march of progress which has been brought about by the Pakistan Tehrik Insaf in this province,” Mr Jhagra said.
He said that that province’s revenue estimates have been pitched Rs 1.332 trillion. Current expenditures of the province have been pitched at Rs 914 billion while development expenditures has been pitched at Rs 418.2 billion.
Mr Jhagra said that the province will receive Rs 570 billion in lieu of federal tax assignment. In addition to this, province will receive Rs 31 in lieu of straight transfers for royalty on gas and crude oil production while Rs 61 billion in lieu of net hydel profit proceeds. Besides, the province will also receive Rs 208 billion for merged districts.
Mr Jhagra said that the province will also receive Rs 68.6 billion in lieu of 1 percent of federal divisible pool for war on terror. In addition to this, the budget documents also include Rs 93 billion donor assistance.
Mr Jhagra said that salaries of over 600,000 government employees will cost the province’s kitty to the tune of Rs 448 billion.
Besides, he also announced 16 percent pay raise and 15 percent pension raise for serving and retired government employees.
Government has also allocated Rs 107 billion for payment of pensions.
He said that government was abolishing pension, rather, setting a contributory pension fund for future government employees. Mr Jhagra said that government employees will contribute 10 percent of their basic pay in the pension scheme.
Mr Jhagra said that a government employee earning Rs 50,000 pay will contribute Rs 5,000 in the pension fund, on the other hand, provincial government will chip in Rs 6,000, and contribution will total Rs 11,000 per month.
He said that in the first year, the pension contributory fund will generate Rs 11 to Rs 12 billion and will go up to Rs 100 billion in six years time.
Mr Jhagra said that the pension fund invested money will lead to development of province’s economy.
He also announced 15 percent adhoc relief allowance for government employees, which was in addition to the disparity reduction allowance.
Mr Jhagra said that government has also increased the risk allowance of police personnel of BS 6-16.
The minister also announced to allocate Rs 25 billion for the Sehat Card Plus scheme. He said that the health budget has been increased to Rs 55 billion. Mr Jhagra said that government was also introducing Sehat Card Plus scheme for government employees including outpatient department coverage.
He said that about 800.000 people received treatment in the ongoing fiscal.
He said that the government has also decided to extend the coverage of five more diseases including bone marrow transplant, multiple sclerosis, cochlear implants, advanced stage cancer and thalassemia in the Sehat Card Plus scheme.
Besides, he added that Rs 10 billion have been allocated for purchase of freed medicine in the budget.