Rs 86.5 billion tax-free NWFP budget announced
Pakistan Times National News Desk

PESHAWAR: NWFP Senior Minister Sirajul Haq, who also holds portfolio of finance ministry, Sunday presented Rs 86.507 billion tax-free budget for financial year 2005-06, showing a deficit of Rs 2.307 billion.

Compared to the current revenue expenditures of Rs 86.507 billion the current revenue receipts had been estimated at Rs 84.199 billion.

Siraj hoped that the deficit would be covered by taking certain measures to curtail extra expenditures. No new taxes have been suggested in the budgetary proposals for the year of 2005-06, but the minister made certain proposals for changes in taxation system.

Overall receipts for the year of 2005-06, including province’s own receipts, subvention, hydel net profit, straight transfers and province’s share in federal divisible pool were projected at Rs 58.352 billion.

The expenditures against these receipts were projected at Rs 51.062 billion, thus confirming a deficit of Rs 7.290 billion in current revenue receipts and current revenue expenditures.

However, Finance Minister Sirajul Haq has shown receipts of Rs 25.847 billion from the sectors of Current Capital Income and Development Receipts while expenditures from the same sectors were estimated at Rs 35.445 billion.

Opposition's Viewpoint

Before the Minister could be invited for his budget speech in the assembly, the opposition asked Speaker Bakht Jehan Khan to give his ruling over the budget speech being delivered on Sunday.

Abdul Akbar Khan of Pakistan People’s Party Parliamentarians through a point of order raised a technical objection, saying that convening of the assembly session on Sunday was illegal and unconstitutional. In this respect he quoted certain Articles of the Constitution, particularly Article 67 and 61. Awami National Party leaders also supported him in his contention.

However, the Speaker in his brief remarks ruled out the objection and said the session was being held in accordance with Constitution and rules. At this stage, the PPP-P and ANP members staged a walkout, though separately.
No one from other opposition components supported the parliamentarians from ANP and PPP-P.

Later, Sirajul Haq delivered his budget speech before the assembly.

Budgetary Proposals

Presenting the budgetary proposals for the year of 2005-2006, the senior minister expressed his government’s concern over delay in announcement of National Finance Commission (NFC) Award, which, he said, had been creating severe problems for the provincial government.

He also expressed his reservations about the failure of Prime Minister Shaukat Aziz in honouring commitment his predecessor Mir Zafarullah Khan Jamali had made with the NWFP government regarding payment of Rs two billion extra in connection with hydel net profit.

However, he expressed his pleasure over constitution of the Arbitrary Commission and hoped would soon start its meetings.

About the budgetary proposals, the finance minister said that the receipts stood at Rs 34.898 billion, which, he said, shows an increase of Rs 5 billion compared to financial year 2004-05.

In the budget estimates for 2004-05, the NWFP’s share in federal divisible pool was projected at Rs 28.987 billion that according to revised estimates was Rs 29,713 billion. The provincial finance minister said that in the light of growth witnessed in national economy they had been expecting further increase in such receipts.

Straight Transfers

He said that the province would get Rs 979.497 million from Straight Transfers and Rs 5 billion in subvention. Sirajul Haq also informed the House about an extra grant of Rs 5 billion to be received from the federal government for addressing genuine economic needs of the province. In this connection, he referred to the hectic efforts by Chief Minister Akram Khan Durrani.

He said that Rs 4.474 billion were expected to come from own receipts, and hydel net profit was projected at Rs 8 billion to be received from Wapda through the federal government. He was of the firm belief that the federal government would soon honour its commitment on clearing all arrears of the province in hydel net profit sector.

Listing out details of Current Capital Expenditures before the assembly, Siraj said that it included Rs 1.549 billion in Account No One for Non Food, Rs 8.499 billion in Account No 2 for food and Rs 5.232 billion SAC-III loan.

The development receipts, he said, included Special Federal Development grant of RS 1.241 billion, RS 488.320 million (ASL-II) Agriculture Sector, RS 1.979 billion Extra Budgetary Grant and RS 6.857 billion Foreign Funded projects.

About the Current Revenue Expenditures Finance Minister Sirajul Haq said that these included Rs 21.109 billion on establishment and services, Rs 4.646 billion on law and order, Rs 5.657 billion on economic services, Rs 286.553 million on Environmental preservation, RS 535.378 million on construction of houses and community services, Rs 3.274 billion on recreation, culture and religious affairs, RS 15.209 billion on education and training and Rs 181.905 million on social protection.

The education sector has got maximum attention of the Muttahida Majlis-e-Amal government, he said.

The NWFP Senior Minister said that current development expenditures of Rs 11.200 billion have been allocated for Provincial Annual Development Programme, Rs 963.393 million for District ADP and Rs 1.979billion will be spent on special funded programme. He added that Rs 5.855 billion were allocated for non-food sector and Rs 8.600 billion for food sector.

Comparing the budgetary proposals for coming fiscal year with outgoing financial year, Siraj told the House that though current revenue receipts and current revenue expenditures during 2004-05 remained the same as estimated at Rs 42.650 billion, differences were registered in Current Capital Revenue and Expenditures and also in Development Receipts and Expenditures. He said the government took some extra measures to bridge this gap.

Overall the deficit in the budget estimates for year 2004-05 was enhanced from Rs 3.1 billion to Rs 5.357 billion. This deficit, he said, included the Rs 2 billion that the federal government failed to pay as promised by former prime minister Mir Zafarullah Khan Jamali.

Earlier, Speaker Bakht Jehan Khan paid tribute to late Sardar Inayatullah Khan Gandapur who died recently. Abdul Majid Khan reminded the House about sad demise of former MPA Sher Zaman Sher. Fateha was offered for the departed souls of Sardar Inayatullah Khan Gandapur, Sher Zaman Sher and Akhtar Ali, father of NWFP Irrigation Minister.●