#1RESILIENT Khyber Pakhtunkhwa Budget 2020-21 A citizen's guide H حکومت خیبر پختونخوا#2Empty#3ABOUT THIS BOOKLET The Pakistan Tehreek-e-Insaf (PTI) Government of Khyber Pakhtunkhwa is pleased to submit its third budget, and the second full Khyber Pakhtunkhwa budget, including that of the Newly Merged Districts (NMDs). The booklet explains the budget and financial health of the province in simple language, making it easy for the people of Khyber Pakhtunkhwa to understand its impact on their lives. The Citizen's Budget reflects the Government's commit- ment to transparency of how and where finances are spent, promoting the Government's resolve of enhancing accountability and realistically managing public finances. DISCLAIMER The document provides actual and estimated revenue and expenditures for Khyber Pakhtunkhwa to promote better understanding about the Government's priorities. Estimated figures for 2020-21 are based on current forecasts and projections about the Budget and may, therefore, be subject to change as a result of new information, future events or other developments. www.finance.gkp.pk < 01#402 > MESSAGE FROM THE CHIEF MINISTER GOVERNMENT OF KHYBER PAKHTUNKHWA Khyber Pakhtunkhwa's 2020-21 budget, like its people, is a budget of resilience. We are facing an unprecedented challenge - a global pandemic - that is threatening our lives and livelihoods. And yet, we must look at this as impetus for real change. Change in the way we think. Change in the way we behave. It will take sheer commitment and willingness to adapt on our part to realize this change. The Government of Khyber Pakhtunkhwa is fully committed to helping its people navigate this change. We are focused on strengthening our health service delivery chain, providing social protection to our citizens, creating economic stabilization avenues and generating jobs where recession is looming. While we deal with the medium-term challenge of this pandemic, we will not forget our resolve to invest in our province's untapped potential. This is reflected in our planned development spending being comparable to last year's Annual Development Programme spending. My team and I will also ensure that our government also changes in the way it functions. We are already being extremely prudent in our discretionary current expenditure and have expedited institutional change that will lead to significant cost savings. Doing so will create fiscal space for us to continue spending on critical service delivery and generating economic growth. The Khyber Pakhtunkhwa Budget 2020-21 reflects our commitment towards building resilience for the medium-term and setting up the stage to realize our investments in the province's development in the long term. My team and I will work tirelessly to help us see this pandemic through and then accelerate on the road to reform. Mahmood Khan Chief Minister, Khyber Pakhtunkhwa www.finance.gkp.pk#5Taimur Saleem Khan Jhagra Minister for Finance, Khyber Pakhtunkhwa MESSAGE FROM THE MINISTER FOR FINANCE GOVERNMENT OF KHYBER PAKHTUNKHWA I feel privileged to have led the preparation of the third budget of this PTI government and the second budget of ONE Khyber Pakhtunkhwa. While COVID has negatively impacted us all, we are taking it as an opportunity to reinvent ourselves. For this to happen, we must not only face this external threat head-on, but we must also introspect and change our way of working. Hence, this budget is one of reform, recovery and resilience. Before we look to the future, we must appreciate the progress made in the past year. Khyber Pakhtunkhwa Revenue Authority has delivered record revenue growth. We have unlocked additional revenue sources through Net Hydel Profits. Several mega projects are underway and we have made strides to serve our citizens, in addition to generating economic growth. However, there is much that needs to be done. To enable our citizens to deal with COVID, we are investing in our healthcare capacity, enhancing our social protection and safety nets & providing economic stabilization incentives through both tax and non-tax reforms. We are also committed to control the cost of government. We are deploying our best talent, time and effort to arrest the growth in salary and pensions. We have identified several opportunities to do so and are in the process of realizing these savings. In parallel, we are being extremely prudent in controlling our discretionary current expen- ditures. Despite our challenges with current expenditures, we are committed to the province's development to unleash the potential of this beautiful land and its resilient people. We will go through hard times. But we will come out stronger. www.finance.gkp.pk < 03#604> MESSAGE FROM THE FINANCE SECRETARY GOVERNMENT OF KHYBER PAKHTUNKHWA Transparency is the corner stone of good governance and it can only be achieved when there is sufficient public oversight over the usage of taxpayer's money. This citizen's budget provides the people of Khyber Pakhtunkhwa visibility over how their government is spending funds for their welfare and benefit. Furthermore, it provides useful insights about fiscal decisions made by the government based on priorities and needs of citizens of Khyber Pakhtunkhwa. Our objective is to make financial information as accessible and comprehensi- ble for the citizens of the province, and provide them an opportunity to hold their government accountable. Our commitment for the continued prosperity and progress of our beloved province remains unwavered in the face of this pandemic and this budget is a testament to this fact. Atif Rahman Finance Secretary, Khyber Pakhtunkhwa www.finance.gkp.pk#7TABLE OF CONTENTS Understanding the budget COVID-19 context 07 37 37 Important milestones for 2019-20 Understanding the salaries for the budget and pensions challenge for Government The proposed 55 Sector highlights budget 2020-2021 www.finance.gkp.pk 13 43 69 < 05#8Empty#9www.finance.gkp.pk Understanding the Budget < 07#10... 08 > WHAT IS A GOVERNMENT BUDGET? Tax Receipts Public Exchequer State Service Provision S Rs. SCHOOLS ☑ ELECTRICITY HOSPITALS GAS ROADS JOBS WATER People pay taxes and fees to the government. The government in return is able to spend that money back on the people of the country: on education; health; infrastructure including energy, water and roads; on job creation; and on paying the people who work in government to help deliver all of the governments work to the citizens. The budget year in Pakistan runs from July to June. Typically the budget is presented and approved in June. The Khyber Pakhtunkhwa annual budget represents both the financial situation of the government, as well as identifies what money the government thinks it will earn through these twelve months (revenue or receipts) and how it will spend that money (expenditure) for the public good. www.finance.gkp.pk#11THE BALANCING ACT The budget is a balancing act between resources generated and resources spent. Resources generated depend on taxation, fees and other avenues of revenue. The more resources a government can generate, the more it can spend on the priorities that matter to us: ⚫ direct service delivery to citizens, ⚫ generating economic growth, and delivering development projects for the benefit of its citizens If resources are short, governments have to either underspend, or borrow money to finance spending. www.finance.gkp.pk Rs Rs Rs < 09#1210 > HOW DOES KHYBER PAKHTUNKHWA GENERATE RESOURCES? Every year, the Government of Khyber Pakhtunkhwa collects its revenues from several sources. These include: Category Details Proportion FEDERAL TRANSFER Transfers from the divisible pool of the taxes collected from FBR Rs Rs Rs Rs Rs Rs STRAIGHT TRANSFERS Money collected from oil and gas royalties and surcharges Rs. คค NET HYDEL PROFIT Rs % OWN SOURCE RECEIPTS FOREIGN PROJECT ASSISTANCE DEBT AND SAVINGS FEDERAL GRANT Profits from the Hydro electricity generated in the province throughout the year Provincial Tax collected on services, immovable property and other revenue generated by the department itself The amount committed by the donors for developmental work across the province in various sectors Loans taken by the government (if any), other expected savings etc Grants from the federal government, including funds for the merged tribal districts Rs. Rs Rs. Rs Rs Rs - Rs Rs Rs Rs Rs www.finance.gkp.pk#13WHAT ARE THE DIFFERENT AREAS OF SPENDING? CURRENT EXPENDITURE DEVELOPMENT EXPENDITURE PATŠ SALARY Accounts for majority of government expenditure and is increasing every year NON SALARY Represents regular operational and maintenance expenses PENSION Third largest current expenditure. Key reforms are being undertaken to reduce it This is the money used for new projects and schemes across all departments It is spent at Provincial and District levels (30% of funds are earmarked for local bodies as District ADP in accordance with the Local Government Act) It is usually what remains of the total budget, once all current expenditures have been covered However, since it directly improves the lives of the average citizen, we need to make sure it is as high as possible www.finance.gkp.pk < 11#1412 > IS ONLY DEVELOPMENT SPENDING CRITICAL? Typically, discussion on the budget views development spend as good and current spend as unwarranted. This is not always true. Every category of spend (salary, non-salary and development) has examples of spending that are critical to the responsibilities of the government to the citizenry. Current expenditure Salary Non- salary Critical to service delivery Spend on staff that helps in service delivery, such as teachers, doctors, rescue staff, police, municipal staff etc. Spend on operations and mainte- nance service delivery facilities, such as running hospitals, schools, road maintenance, etc. Administrative/overhead costs Spend on support and administra- tive staff that does not directly impact service delivery Spend that does not enhance service delivery, such as travel and entertainment cost, electricity, stationery etc. Development expenditure Spend that directly improves the life of an average citizen, such as building of new schools, hospitals, roads, etc. HR projects, refurbishment of offices etc. www.finance.gkp.pk#15Important milestones for 2019-20 www.finance.gkp.pk < 13#16OUR WORK IS PAYING OFF, AS 2019-2020 PROGRESSED AS A YEAR OF RECORD REVENUE GROWTH FOR THE KHYBER PAKHTUNKHWA REVENUE AUTHORITY, DESPITE COVID REVENUE, RS. BILLION: YTD - JUNE TO MAY ~81% 2019-20 15.6 (PKR 7 B) KPRA 2018-19 8.6 Rs. 17B collection expected by end of year vs 10B in 2018-19 Source: KPRA forecast document June 2020 www.finance.gkp.pk 14 >#17KPRA DELIVERED RECORD REVENUE GROWTH AND MANAGED TO AVOID ANY DRASTIC DIP IN THE CRUCIAL MONTHS DESPITE THE LOCKDOWN Revenue in PKR Billions KPRA- Year till date comparison (July-May) Updated till May 2020 ■2018-19 ■2019-20 Growth vs LY 2.7 2.2 1.5 1.2 1.2 1.2 1.1 1.1 1.02 0.9 0.87 0.82 1.04 1.0 0.921 1.1 0.79 0.73 0.73 0.74 0.70 0.65 Key drivers of growth Tax net extension . To boost voluntary compliance of sales tax, new slabs of reduced rates covering 10%, 8%, 5% and 2% have been introduced • AOPS and Individuals were offered lower tax rates with rigorous registration drives all across the province. 58% 13% 56% 68% 51% 259% 16% 116% 149% -8% 19% July Aug Sept Oct Nov Dec Jan Feb Source: KPRA forecast document June 2020 www.finance.gkp.pk Mar April May Lockdown - 30-40% of revenue typically collected in the last quarter of the fiscal year Process simplification . 27 taxes have been reduced, and only 29 out of the previous 83 taxes remain at the standard rate of 15% < 15#1816 > TYPICALLY, PROVINCES SPEND 30-40% OF THEIR ADP IN THE LAST QUARTER BUT KHYBER PAKHTUNKHWA HAS SPENT IT MUCH MORE EVENLY THROUGHOUT THE YEAR ADP EXPENDITURE - COMPARISON PKR BILLIONS Monthly Spend 2018-19 Monthly Spend 2019-20 Cash Flow Balance Constraints Impact of new ADP/release policy 12.7 8.8 6.1 4.5 4.6 5.6 6.7 7.6 7.8 8.7 5.9 4.0 4.6 3.8 3.2 1.0 0.0 1.2 Jul Aug Sept Oct Nov Dec Jan Feb Mar Lock-down due to COVID-19 10.2 7.8 6.2 4.0 Apr June 2019-20 is maximum projection May All available funds diverted towards development 23.0 Without COVID 18.3 provincial ADP June* spending could have exceeded 100% www.finance.gkp.pk#19FOR BETTER MANAGEMENT OF ADP, A NEW POLICY LOOKING AT A MULTI YEAR HAS BEEN APPROVED SPANNING FROM 2019 TO 2023 Salient features of ADP 2019-23 policy No elected representative may claim any discretion over the ADP. ■The practice of issuing CM Directives, at his sole discretion, for allocation and distribution of funds for umbrella / block development schemes shall be immediately discontinued ■Equitable distribution of ADP will be based on Regional Planning exercises and district ADPS to maximize impact and achieve fair geographic spread. ■Provincial ADP must consider a multi-year view ■Spending would be focused on service delivery sectors and productive direct service delivery staff (teachers, doctors, nurses, rescue staff etc) www.finance.gkp.pk <17#2018 > WE HAVE REVAMPED OUR RECRUITMENT APPROVAL PROCESS, WITH A FOCUS ON INDUCTING AND EXPANDING SERVICE DELIVERY WORKFORCE This year, the following steps were taken 1 Weekly departmental meetings were conducted to approve new posts demands Demands were rationalized and focus 2 was shifted towards service delivery posts As a result of this, we were able to create more than 13,000 service delivery positions for health workers, teachers, local government and agriculture staff, resulting in savings of more than Rs.10 Billion by filtering unnecessary posts www.finance.gkp.pk#21KHYBER PAKHTUNKHWA GOVERNMENT IS UNDERTAKING SEVERAL MEGA PROJECTS ACROSS SECTORS... 247 MW Increase in load capacity through PKR 7.3bn investment in NMA 57 MW Added in generation & transmission through 3 new HPP 200+ Villages were given access to renewable energy RASHAKAI SEZ First SEZ in Khyber Pakhtunkhwa as part of CPEC approved by board SWAT EXPRESSWAY Opened for light traffic 28,000+ Students trained in employable skills 25 New industrial units added 13 Startup businesses incubated under Durshal Project PKR 500 MN Mobilized for establishment of new industries in small industrial estates (SIDB) WEB BASED SYSTEM For issuance of Route Permit, Vehicle Fitness and Driving License in Khyber Pakhtunkhwa PKR 1.5 BN Investment in optic fiber facility 21 Rescue 1122 stations established in NMAS www.finance.gkp.pk < 19#22SEHAT INSAF CARDS TO ENSURE EVERY FAMILY IN THE PROVINCE HAS UNIVERSAL HEALTHCARE INSURANCE 2019-20 Achievements 2020-21 Target - Universal Coverage 20 > # of Families Covered 2.2m in Settled Areas 1.1m in NMAS " " 6.06m For Settled Areas NMAS are already fully covered Money Spent PKR 3.6 Billion PKR 10 Billion Services Provided Secondary and Tertiary Healthcare Secondary and Tertiary Healthcare Coverage Per Family PKR 600,000 PKR 1,000,000 www.finance.gkp.pk#23SWAT EXPRESSWAY IS NOW OPEN FOR LIGHT TRAFFIC REDUCING TRAVEL TIME FROM 2 HOURS TO 45 MINUTES ONLY IMPACT! SWAT EXPRESSWAY, 81-KM LONG 4 LANE ROAD SPANNING FROM M1 TO CHAKDARA, IS THE FIRST PROVINCIAL MOTORWAY ANYWHERE IN PAKISTAN BUILT AT A COST OF PKR 36 BILLION Travel time reduced from 2 hours to 45 minutes ■More than 10,000 people employed during the construction of expressway Easy access to scenic tourist spots like Malam Jabba, Kalam Valley, Swat Valley Enhanced Farm-to-market access for growers in Northern districts of Khyber Pakhtunkhwa www.finance.gkp.pk <21#2422 > NEW DESTINATIONS AND IMPROVED INFRASTRUCTURE HAS GENERATED MASSIVE TOURISM TRAFFIC Interventions 4 Integrated Tourism Zones Launched Abbottabad Mansehra Swat Chitral Impact 2 million tourists visited during tourist season 2019-20 Major infrastructure development for new tourist destinations underway Tourism Police established to facilitate tourists Tourism authority setup to boost hospitality sector www.finance.gkp.pk#25THERE ARE MORE CHILDREN IN SCHOOL WITH BETTER QUALITY EDUCATION AND FACILITIES More children now attend school... Despite increasing population, the number of OOSC has dropped by 500,000 children¹ Getting a better quality education... Teacher attendance and student attendance are at 92% and 82% respectively- the highest that these have ever been ■ Grade 5 and Grade 8 average scores improved by 11% since last year A literacy and numeracy drive was launched in more than 13,000 schools In schools that are more functional ☐ More than 99% of schools are fully functional ■ 75% of schools have all basic facilities available - an improvement of over 50% in 5 years ■ Recruitment of more than 22,000 teachers www.finance.gkp.pk < 23#26BY THE END OF THE YEAR, RESCUE 1122 WILL HAVE PRESENCE ACROSS ALL DISTRICTS OF KHYBER PAKHTUNKHWA 24> Functional In pipeline Districts 26 9 Stations 72 24 Ambulances 122 22 HR 1,216 440 Lower Chitral Upper Chitral U Kohistan Upper Die CL Kohistan Bajaur Lower Dir Swat Kalal Pallas Shangla Batagram Mohmand Malakand Mansehra Khyber Kurram Orakzal Kohat Karak Bantu North Waziristan South Tank Waziristan Lakki Marwat DiKhan Duner Mardan Abbottabad Swabi Harur Nowshera Districts Covered Districts in pipeline www.finance.gkp.pk#27NEWLY MERGED DISTRICTS ARE OUR FOREMOST PRIORITY, AND WE HAVE ACCELERATED THE PROVISION OF SERVICE DELIVERY STRUCTURES, WHERE NONE EXISTED Parliamentary Elections: Elections conducted in over 16 general seats for the first time I For the first time empowering the people of merged areas to elect their representatives and finalizing the political merger with Khyber Pakhtunkhwa Service Delivery Posts Creation: I Village and Neighborhood councils: 1,404 posts Health care facilities: 1,297 posts Educational facilities: 4,467 posts Improving Law & Order: ■26,000 Khasadar and Levies personnel from NMAs merged with the police Bringing much needed security in the districts www.finance.gkp.pk < 25#2824/7 OPERATION OF TORKHAM BORDER HAS INCREASED THE TRAFFIC FLOW SIGNIFICANTLY RESULTING IN ENHANCED REVENUE AND EXPORTS VALUE ~PKR 27 bln increase in value of exports* 24/7 Torkham Border Operation ~PKR 3.5 bln increase in revenue collection through import duties and taxes* ~28,000 increase in number of trade trucks* *Annualized figures based on 3-months data excluding impact of COVID-19 www.finance.gkp.pk 26 >#29RASHAKAI ECONOMIC ZONE 1,000 acres of land for Pharmaceutical, textile, steel and various other industries ~$2.1 bln of local and foreign investment 200,000 direct and indirect jobs Central location on MI motorway near CPEC western route and Swat Expressway ~50% of the access road completed and 100% alloca- tion this year Development Agreement of Rashakai prioritized Special Economic Zone (SEZ) was approved on 4th March 2020 by the Board of Approvals of the BOI under chairmanship of Prime Minister www.finance.gkp.pk < 27#3028 > PEHUR WHEELING AGREEMENT Pehur hydropower Wheeling Agreement Wheeling is transportation of electricity from power plant to bulk consumer using 3rd party infrastructure ~PKR 150 mln of additional revenue to the provincial exchequer 1st energy wheeling model in the history of Pakistan 5 industrial consumers to receive power at reduced rate increasing competitiveness for industrial growth www.finance.gkp.pk#31INTEREST FREE LOANS UNDER THE INSAF ROZGAR SCHEME IS GENERATING ENTREPRENEURSHIP AND EMPLOYMENT FOR THE YOUTH OF NEWLY MERGED AREAS INSAF ROZGAR SCHEME MONTHLY DISBURSEMENTS IN 2019-20, RS. MILLIONS FP2178 24,000 FAMILIES 4.000 PEOPLE BENEFITED* 26 September 157 October 370 693 590 1 Billion 901 November December January February Target *On average, Rs. 200,000 has been provided to each applicant www.finance.gkp.pk < 29#3230 > Water being a major resource of Khyber Pakhtunkhwa, Net Hydel Profit is a significant contributor towards financial resources of the province. www.finance.gkp.pk#33NET HYDEL PROFIT (NHP) IS GRANTED THROUGH THE 1973 CONSTITUTION Article 161 (2) states "The net profits earned by the Federal Government, or any undertaking established or administered by the Federal Government from the bulk generation of power at a hydro-electric station shall be paid to the Province in which the hydro-electric station is situated." www.finance.gkp.pk < 31#34HYDROPOWER STATIONS IN KHYBER PAKHTUNKHWA PRODUCE 19,211 MILLION UNITS OF ENERGY ANNUALLY FOR PAKISTAN Fuel Type Total Cost (Rs./unit) Energy Share Units Generated (Millions) Residual Fuel Oil 12.03 0.95% 1,291 (RFO) RLNG 9.60 26.83% 36,473 Coal (Imported) 9.02 15.88% 21,588 Coal (Local) 8.59 4.81% 6,539 Natural Gas 6.67 10.52% 14,301 Renewable 5.77 3.17% 4,309 Hydro 3.28 30.53% 41,503 ~50% of the Hydro generation is from Khyber Pakhtunkhwa 32 > SOURCE: PPP Forecast by CPPA FY2019-20 COST OF ELECTRICITY GENERATION IN PAKISTAN - COMPARISON OF LCOE OF CPEC COAL PLANTS WITH O&G BASED PLANTS COMMISSIONED IN 2010-14"WORKING PAPER NO. 02-19 by IDEAS Nuclear and Bagasse are not included www.finance.gkp.pk#35NHP ROYALTIES ARE CONSISTENT WITH SIMILAR PAYMENTS IN OTHER COUNTRIES www.finance.gkp.pk Royalties on Hydro power are charged around the world < 33#36ANNUAL PAYMENTS HAVE NOT BEEN CONSISTENTLY IN LINE WITH DUES Net Hydel Profit (NHP) Component 2016-17 NHP Budgeted in FY Received in FY (PKR Billion) (PKR Billion) 33.7 21.8 2017-18 NHP 35.8 41.5 2018-19 NHP 65.3 20 20 2019-20 NHP 55.7 14.5 34 > www.finance.gkp.pk#37INCONSISTENT NHP PAYMENTS LEAD TO UNPREDICTABLE FISCAL PLANNING FOR DEVELOPMENT EXPENDITURE NHP Payments equal to more than 50% of the development expenditure and critical for the province www.finance.gkp.pk Contribution of NHP in Development budget PKR. Billion 104 46 58 2020-21 Development Budget < 35#38Empty#39COVID-19 context for the budget www.finance.gkp.pk < 37#40IN MARCH 2020, COVID HIT PAKISTAN AND MOST OF THE WORLD, LEADING TO THE WORST GLOBAL RECESSION IN A CENTURY ❝ U.S. Jobless Claims Pass 40 Million:" ❝ UK economy takes 25 percent hit from coronavirus: Live updates" ❝ IMF says $10 trillion spent to combat pandemic, far more needed" 66 Covid-19 pushing millions of South Asians into poverty 99 Impact !! Total economic loss for Pakistan can be estimated around PKR 2.5 trillion due to reduced economic activity, lower aggregate demand, liquidity crises, decline in tax revenues and lower exports 38 > www.finance.gkp.pk#41BUDGETING IN AN ECONOMIC DOWNTURN COVID-19 has reduced global economic growth rates including in Pakistan. What do we know about the role of government in an economic recession? What does a recession look like? www.finance.gkp.pk Implications for government budgeting 多 Reduce discretionary spending and the cost of government Increase or maintain spending on development and service delivery Stimulate economy through tax relief measures < 39#4240 > COVID HAS SIGNIFICANTLY HAMPERED FUNDING IN BOTH SETTLED DISTRICTS AND NMAS... Estimated Revenue Receipts* - Khyber Pakhtunkhwa (excluding the tribal districts and foreign project assistance) 2019-20, PKR. Billion 611 540 442 Budget Estimates Pre Covid based of FBR collection Present Estimate Estimated Revenue Receipts - NMAS 2019-20, PKR. Billion 162 131 100 Budget Estimates Pre Covid based of FBR collection. Present Estimate *Receipts include all federal transfers(504.6bln) and provincial own source (45.4) with a deduction of 10bin for NMAS www.finance.gkp.pk#43...DRIVEN BY SIGNIFICANT SHORTFALL IN RECEIPTS FOR THIS YEAR.. Receipts Budgeted vs Revised Estimates - 2019-20 PKR Billions 15% 385 326 13% 22% Budgeted Revised Est. 67% 46 49 40 45 35 24 16 26 26 Est. share of Federal Receipts 1% WOT Provincial Receipts NHP Straight Transfers www.finance.gkp.pk < 41#44DESPITE THE REVENUE SHORTFALL, WE HAVE MAXIMIZED DEVELOPMENT SPENDING THROUGH 2019-20 USING AVAILABLE FUNDS Breakdown of expenditure¹, 2019-20 Amount in PKR Billions 42> 450 43 33 93 55 65 651 Current Expenditure² Provincial Development NMD Development FPA Available Resources 1 Approximations, final numbers will be shown on completion of year 2 Excluding subsidy, investment and committed contribution, interest payments and grants to the local council www.finance.gkp.pk#45Understanding the salaries and pensions challenge for Government www.finance.gkp.pk < 43#4644 > WHAT THE GOVERNMENT DOESN'T SPEND ON ITSELF, IT SPENDS ON YOU www.finance.gkp.pk#47A budget is all about trade-offs, good leadership requires taking hard decisions. Not increasing salaries and pensions is a difficult decision. But in difficult times, the right one. This section explains the impact of constantly increasing size of government and the unfunded pension system of Pakistan; two problems the Government of Khyber Pakhtunkhwa is actively working on. www.finance.gkp.pk < 45#4846 > THE GOVERNMENT SALARY AND PENSION BILL HAS INCREASED BY 450% IN THE LAST 10 YEARS- - 40% OF THE BUDGET SPENT ON SALARIES AND PENSIONS Salary & Pensions expenditure comparison | 2010 - 2020 Rs. Billions Settled Districts ~4.5x Increase in salaries and pensions since 2010-11 82 360 2010-11 2020-21 www.finance.gkp.pk#49GOVERNMENT BUDGET HAS TO TAKE CARE OF THE ENTIRE LABOUR FORCE. ONLY 8% OF THE LABOUR FORCE WORKS IN GOVERNMENT. 533,763 people are employed in the public sector 7.4% of the labour force Rs. 412 Billion budget О 6,634,091 people are employed in the private sector 92.6% of the labour force Rs. 318 Billion budget www.finance.gkp.pk <47#50PUBLIC SECTOR JOBS ARE ATTRACTIVE, BUT COME AT A COST Sanctioned posts and Salary expenditure comparison | 2010-2020 Posts in number, Expenditure in PKR Billions 48 > Sanctioned posts 55% increase 345,153 Salary Expenditure 533,763 265 270% increase 71 2010-11 2020-21 2010-11 2020-21 www.finance.gkp.pk#51DESPITE CHALLENGES, PAY PACKAGES IN GOVERNMENT ARE COMPETITIVE RELATIVE TO THE MARKET Government & Market Monthly Compensation Comparison PKR 28,000 Minimum wage - Rs. 17,500 5,500 12,000 Class - IV www.finance.gkp.pk 33,000 18,000 Driver 51,000 ■Govt. Compensation ■Market Compensation 25,000 Office staff < 49#5250 > HOW GOVERNMENT STAFF IS STRUCTURED - AND THEIR ASSOCIATED COSTS Grade-wise breakdown of sanctioned posts and associated annual salary cost - settled districts 533,289 posts Rs. 60 bln 91,471 23,220 posts posts 116,071 posts Rs. 122 bln 134,58 8posts 45,941 posts 121,998 posts Total BPS 1-4 BPS 5-7 BPS 8-10 BPS 11-14 BPS 15-16 BPS 17-22 www.finance.gkp.pk#53PENSION EXPENDITURE HAS GONE FROM 1% TO MORE THAN 15% OF THE BUDGET IN LAST 15 YEARS... Pension expenditure - Actual PKR Billion ~80x Increase in pensions since 2003-04 from 1% of the budget, to 15.7% of the budget 69.1 0.87 Estimated Receipts 2003-04 77.24 2019-20 4401 Pension as % of Budget 1.13% 15.7% 1 Estimated receipts - Excluding FATA and FPA www.finance.gkp.pk Source: Finance Department < 51#5452 > 26 WITH THIS TREND CONTINUING PENSIONS WILL RISE TO PKR 127 BN BY 2023 (20% OF THE BUDGET) AND 507 BILLION BY 2030 (~45% OF THE BUDGET) Pension Projections - till 2030 PKR Billion -Pensions -Receipts 2014-15 2015-16 2016-17 2017-18 2018-19 Source: Finance Department 485 70 127 2019-20 2020-21 2021-22 2022-23 2023-24 628 507 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 www.finance.gkp.pk 1148#55WHILE A DIFFICULT DECISION, FREEZING SALARIES AND PENSIONS SAVES RS. 41 BN, WHICH ENSURES THAT THESE FUNDS ARE AVAILABLE FOR SPENDING ON COVID AND HEALTH SECTOR DEVELOPMENT PKR Billions www.finance.gkp.pk 41 412 Salary & Pension 2020-21 Covid, 24 Health ADP, 24.4 <53#56Empty#57The proposed budget 2020-2021 www.finance.gkp.pk < 55#5856 > THE HEADLINE NUMBERS Total budgeted expenditure: " Settled districts: Merged districts: Current budget: Settled districts: ■Merged districts: Development budget: Settled districts: ☐ Merged districts: Rs. 923.0 billion Rs. 739.1 billion Rs. 183.9 billion Rs. 605.2 billion Rs. 517.2 billion Rs. 88.0 billion Rs. 317.8 billion Rs. 221.9 billion Rs. 95.9 billion www.finance.gkp.pk#59DETAILS OF EXPENDITURE Settled districts Salaries: Pensions: Non-salary (O&M, contingencies, District Non-Salary) Other current expenditure Provincial ADP: District ADP: Foreign Development Assistance: Total: Merged districts Salaries: Non-salary: Provincial ADP: Rs. 274.3 billion Rs. 86.0 billion Rs. 103.9 billion Rs. 52.9 billion Rs. 104.0 billion Rs. 44.6 billion Rs. 73.4 billion Rs. 739.1 billion Rs. 52.0 billion Rs. 36.0 billion Rs. 24.0 billion District ADP: Rs. 10.2 billion AIP: Rs. 49.0 billion Foreign Development Assistance: Rs. 12.7 billion Total: Rs. 183.9 billion www.finance.gkp.pk <57#6058 > REVENUE/RECEIPTS ■ Federal Tax Assignments ■ 1% of the divisible pool to the province for the war on terror Oil & Gas royalties and surcharges (straight transfers) Rs. 404.8 billion Rs. 48.6 billion Rs. 24.1 billion ■ NHP as per 2015-16 MoU, including arrears ◉ Provincial Tax and Non-Tax Revenue ■ Foreign Project Assistance (Settled districts) Foreign Project Assistance (MA) Grants for the merged tribal districts Other receipts Total receipts: Rs. 58.3 billion Rs. 49.2 billion Rs. 73.4 billion Rs. 12.7 billion Rs. 161.0 billion Rs. 91 billion Rs. 923 billion www.finance.gkp.pk#61KHYBER PAKHTUNKHWA'S 2020-21 BUDGET SHOWS OUR COMMITMENT TO DEVELOPMENT SPENDING, KEY SECTORS OF EDUCATION & HEALTH WITH FAIR ALLOCATIONS ACROSS SETTLED AND MERGED DISTRICTS Breakdown of Khyber Pakhtunkhwa Budget 2020-21 PKR Billion Revenue 923 Total Expenditure 923 www.finance.gkp.pk Breakdown of total expenditure ■ Current By type of expenditure 34% 66% ■ Develop ment By area 20% ■ Settled ▪ Merged 80% 18% ■ Education By key 13% ■ Health sectors 69% ■ Others < 59#6260 > DESPITE THE CHALLENGES, WE WILL SHIFT SPENDING TO WHERE IT IS NEEDED MOST, CUT UNNECESSARY EXPENDITURES AND SET KHYBER PAKHTUNKHWA ON A PATH TO RECOVERY Cost of Government Measures ■ No allocation for trainings, entertainment, etc. ■ Reduced allocations to non-essential services ■ Recruitment and purchase of assets only for essential services ■ No general increase in Salary and Pension Health Care Plan System capacity being enhanced through Locum scheme ■ Special incentives to health workers Special focus on preventive measures, testing, diagnostics, treatment of COVID patients and relief activities *including NMAS Social Protection Plan ■ Economic recovery package to support SMEs and generate jobs ■ PKR 13* billion allocated to Cash Transfers (Ehsaas Program) Economic Stabilization Plan C - ■ Tax Incentives for vulnerable sectors & professions ■ Rationalization of sales tax on services and urban immovable property tax ■ Admission fee reliefs for Katchi-12 and Higher Education www.finance.gkp.pk#63TAX RELIEF AND EDUCATIONAL INCENTIVES WILL BE PROVIDED TO HELP RESTART AND GENERATE GROWTH IN PRODUCTIVE SECTORS OF THE KHYBER PAKHTUNKHWA ECONOMY Key tax reforms Sales tax on services Sales tax on services (STS) will be reduced for over 27 categories. Hospitality & entertainment sector reliefs Entertainment and Hotel Tax will be removed Reduction of rates for non-corporate local chains of restaurants and hotels on usage of point of sale software Professional tax concessions Professional tax to be phased out to KPRA and will include concessions & tax breaks for 18+ professions including doctors, lawyers, retailers, etc, Urban Immovable property tax Rationalization of Urban Immovable Property Tax Compliant taxpayers offered a rebate of 25% Introduction of arrears recovery relief Construction sector rellefs Board of Revenue to reduce both Capital Value Tax and Stamp duty for the construction sector K-12 education rellefs Free admissions for both Government Primary and Secondary Education Schools for Girls and Boys Free admissions to Professional Government Art Colleges Key non-tax reforms Higher education rellefs ■ Multiple fees to be annulled with respect to Higher Education Archives & Libraries. www.finance.gkp.pk < 61#64A BUSINESS-FRIENDLY TAX BUDGET (1/2) 62 > TAX REFORM AND RELIEF PACKAGE % 81% year-on-year growth in Khyber Pakhtunkhwa Revenue Authority and even after COVID the year will end at a record Rs. 17 billion plus collection. 38% increase in provincial revenue receipts before COVID-19 however a 20% growth will still be achieved post-COVID impact by the year end 2020-21 is a tax-free budget Taxes on around 200 small business eliminated by the local government department Double taxation is being eliminated by the Excise department ■ zero bed tax for hotels ■ zero professional tax for 18 categories of professionals, provided they register with KPRA ■ zero professional tax on all medical professional and services. ■ The entertainment tax is being permanently abolished. www.finance.gkp.pk#65A BUSINESS-FRIENDLY TAX BUDGET (2/2) TAX REFORM AND RELIEF PACKAGE Re-registration of cars will be free of cost with no NOC required from the originating province. UIPT location factors, up to 35% further discount on early payment for compliant taxes payers. Sales tax on services reduced substantially in 27 categories. To encourage digitization a reduced rate of 5% for restaurants when using POS system In line with Prime Minister's programme, the incentives on CVT and Stamp Duty for construction related transactions are being maintained Elimination of admission fees for Government primary and secondary schools and Professional Government Art Colleges. www.finance.gkp.pk < 63#6664> THE GOVERNMENT HAS BUDGETED PKR 24BN FOR NECESSARY EXPENDITURE TO HELP PROVINCE'S PEOPLE NAVIGATE THESE CHALLENGING TIMES Breakdown of additional commitments PKR Billion 15 COVID-19 Settled Districts 9 COVID-19 NMAS 24 Total Note: COVID fund will be spent on social safety program, health, relief, smart lockdown and other COVID related expenditures www.finance.gkp.pk#67WE ARE TRANSFORMING PUBLIC HEALTH, DEMONSTRATED BY THE HIGHEST INCREASE IN SPENDING IN THE SECTOR TO DATE Health Budget 3-year comparison, PKR Billion 85.3 72.1 71.2 67.2 2018-19 *Including 2.2 B FPA and NMAS www.finance.gkp.pk 124.3 Budgeted Actual 2019-20 2020-21 < 65#6866 > HEALTH HAS BEEN KEPT AT THE TOP PRIORITY FOR MAXIMUM SERVICE DELIVERY (1/2) HEALTH BUDGET AND COVID-19 CONTINGENCY PKR 124 billion, a record budget for Health PKR 24.4 development budget Universal Health Insurance programme for every family in Khyber Pakhtunkhwa under Sehat Insaf programme PKR 36 billion for the operations and enhancement of our flagship tertiary hospitals PKR 13 Billion for Improvement of infrastructure and equipment within all of our DHQS, THQS, RHCS and BHUs partially funded with the World Bank www.finance.gkp.pk#69HEALTH HAS BEEN KEPT AT THE TOP PRIORITY FOR MAXIMUM SERVICE DELIVERY (2/2) HEALTH BUDGET AND COVID-19 CONTINGENCY www.finance.gkp.pk PKR 4 billion Medicine procurement budget increased from PKR 2.5 billion, excluding medicines for Medical teaching institutes PKR 1 billion for hospital waste management system Deployment of 10,000 temporary and permanent professionals for improvement in service delivery Enhance efforts to combat Corona, polio, dengue, as well as routine immunization PKR 24 billion contingency fund to fight corona including the Shuhuda package for front line workers, PPE procurement and testing, relief operations, spending on the poor through the Ehsaas programme < 67#7068 > KHYBER PAKHTUNKHWA GOVERNMENT IS UNDERTAKING SEVERAL MEGA PROJECTS IN PESHAWAR ... MA PESHAWAR UPLIFT PROGRAM 3,500 Million cost. ~700 Million allocated this year PESHAWAR BEAUTIFICATION PLAN 500 Million cost. 75 Million allocated RING ROAD MISSING LINK Construction of Northern Section, Warsak road to Nasir Bagh Road Cost 12B CHILDREN AND MATERNITY HOSPITAL Establishment of hospital in Peshawar Division for 1,300 Million KP UNIVERSITY OF TECHNOLOGY Establishment of Technology University in Peshawar Division for 2,800 Million 5 CONSTRUCTION AND REHABILITATION OF ROADS Construction of ~200 km roads Peshawar Division for 3,600 Million. Rehabilitation of road alongside Charsadda bridge www.finance.gkp.pk#71Sector Highlights www.finance.gkp.pk < 69#7270> Sector-wise highlights Settled Areas www.finance.gkp.pk#73Auqaf & Religious Minority DEPARTMENT WISE TOTAL BUDGET (1/2) PKR MILLIONS Sector Agriculture 5,339 330 Total Budget 2020-21 22,477 862 Budget 2020-21 Settled Budget 2020-21 MA 17,139 532 Bureau of Stats 43 09 52 Communication & Works 31,191 17,559 48,751 Elementary & Secondary Education 152,447 31,341 183,788 Energy & Power 8,844 2,699 11,543 Environment 2,172 10 2,182 Excise and Taxation 887 66 953 Finance 5,317 9,233 14,550 Food 449 2,275 2,724 Forestry 3,136 1,305 4,441 General Administration 3,920 560 4,480 Health 105,928 18,603 124,530 Higher Education 19,314 4,784 24,097 Home Department 54,284 21,434 75,718 Housing 537 00 537 Industries 3,592 1,615 5,207 Information and Public Relations 630 148 778 Information Technology 910 181 1,091 Irrigation 15,885 6,943 22,828 Labour 606 00 606 Law & Justice 7,667 1,404 9,071 Local Government 28,515 3,599 32,114 www.finance.gkp.pk < 71#7472> DEPARTMENT WISE TOTAL BUDGET (2/2) PKR MILLIONS Sector Budget Budget 2020-21 Total Budget 2020-21 Settled MA 2020-21 Mines and Minerals 978 260 1,238 Planning and Development 22,162 8,149 30,311 Population Welfare 2,767 42 2,809 Public Health Engineering 11,126 4,354 15,479 Relief, Rehabilitation and Settlement 12,863 19,149 32,012 Revenue & Estate 8,754 5,986 14,740 Social Welfare 3,102 567 3,669 Special Initiatives 4,565 50 4,615 Sports, Culture, Tourisim 6,686 4,532 11,218 Technincal Education 2,097 217 2,315 Transport 14,101 100 14,201 Zakat & Usher 235 05 240 www.finance.gkp.pk#75DEPARTMENTAL AND SECTORAL ALLOCATIONS SETTLED DISTRICTS (1/2) Department Current Development FPA Total Agriculture 7,016 4,766 5,357 17,139 Auqaf & Religious Minority 160 372 00 532 Bureau of Stats 43 00 00 43 Communication & Works 4,711 15,251 11,299 31,191 Elementary & Secondary Education 133,760 10,766 7,921 152,447 Energy & Power 106 527 8,211 8,844 Environment 2,142 30 Excise and Taxation 737 150 88 00 2,172 887 Finance 1,753 180 3,255 5,317 Forestry 636 2,500 00 General Administration 3,681 239 88 00 3,136 3,920 Health 92,158 11,567 2,203 105,928 Higher Education 12,791 6,523 00 19,314 Home Department 52,109 1,733 442 54,284 Housing 337 200 00 537 www.finance.gkp.pk <73#7674> DEPARTMENTAL AND SECTORAL ALLOCATIONS SETTLED DISTRICTS (2/2) Department Current Development FPA Total Industries 648 1,783 1,161 3,592 Information and Public Relations 486 144 00 630 Information Technology 382 239 289 910 Irrigation 3,978 9,054 2,854 15,885 Labour 371 181 54 606 Law & Justice 6,677 990 8 00 7,667 Local Government 12,828 7,488 8,199 28,515 Mines and Minerals 748 230 00 978 Planning and Development 425 12,339 9,564 22,162 Population Welfare 1,968 150 649 2,767 Public Health Engineering 7,568 3,548 10 11,126 Relief, Rehabilitation and Settlement 9,863 2,536 464 12,863 Revenue & Estate 8,247 507 00 8,754 Social Welfare 2,352 250 500 3,102 Sports, Culture, Tourism 2,600 2,916 1,170 6,686 Technical Education 2,097 00 00 2,097 Transport 2,284 1,826 9,991 14,101 Zakat & Usher 235 OO 00 235 www.finance.gkp.pk#77HEALTH, EMERGENCY AND COVID MAJOR PROGRAMMES Salary Rs. 50B mmm Operations Rs. 42B Health Expanding infrastructure, improving every health facility, and supporting health staff ■ Sehat Cards to ensure universal healthcare insurance Rs.10B ■ Rs. Rs.675 M for Khyber Pakhtunkhwa Human Capital Investment Project ■ 30,000 health workers to be employed to cater for health service demands. ■ Rs. 2,400 M Integration of Health Services Delivery programme with special focus on MNCH, LHW and Nutrition Programme. ■ Rs. 1,100 M for revamping of Non-Teaching DHQs across KP. ■ Rs. 4000 M for enhancement of facilities at flagship tertiary hospitals including the Peshawar Institute of Cardiology, IKD and KTH. ■Rs. 900 M for the treatment of poor cancer patients. ■ Rs. Rs. 200 M for the establishment of Timgara Medical College Dir Lower. ■ Rs. Rs. 300 M for strengthening of all BHUS across KP & conversion of 200 BHUS into 24/7 SBA facilities. Development Rs. 13.8B Relief Total Rs. 13B COVID Total Rs. 24B* Providing better emergency services ■ Rs. Rs. 290 M for establishment of Rescue 1122 services 6 new districts namely, Tank, Upper Chitral, Upper Kohistan, Kolai Palas, Battagram and Torghar creating 1000+ new jobs, as part of a drive to expand to every district in the province ■Rs. Rs. 215 M for expansion of rescue 1122 services in 4 new districts namely, Lakki Marwat, Malakand, Shangla and Lower Kohistan. COVID Emergency Rs. 24B to comprehensively respond to COVID-19 in the province Rs. 9B to be spent under Ehsaas programme. Rs. 5B to spent on procuring PPEs to protect frontline workers, expand testing and enhance capacity. *Rs. 9B has been reserved for NMA'S COVID-19 response Rs. 1B to be spent on Relief & Rehabilitation for quarantine facilities and smart lockdown. Where possible figures have been rounded to nearest integers. www.finance.gkp.pk <75#7876> EDUCATION AND HIGHER EDUCATION MAJOR PROGRAMMES Salary Rs. 121B Operations Rs. 13B Development Rs. 18.7B Education Improving 26,000 schools ■ The Independent Monitoring Unit has been converted to the Education Monitoring Authority with permanent status. ■ We are inducting 3,000 school leaders bringing span of management control from 64 schools per manager to 10 schools. ■ From next year onwards all new teachers entering the system will receive a tablet allowance to buy tablets to use in schools and at home to teach and to train. ■ Rs. Rs.2600 M for reconstruction of 1200 schools in the province. ■ Construction of 300 new schools in the province. ■ Rs.1500 M for upgradation of 534 schools. ■ Rs. 910 M for establishment of IT labs. Salary Rs. 11.2B Operations Rs. 1.6B Developing colleges and universities ■Rs. 500 M for Pak Austrian Fachhochschule Institute in Haripur. ■Rs. 116 M for the establishment of UET Swat. ■ Rs. 1300 M for the construction and establishment of 74 Government Colleges in the province. ■Rs. Establishment of Swat University. Development Rs. 6.5B Where possible figures have been rounded to nearest integers. Moreover, amounts in brackets are allocation for FY 2020-21 www.finance.gkp.pk#79CITIES, VILLAGES AND ACCESS TO WATER MAJOR PROGRAMMES MANI MANTR Salary Rs. 2.6B Operations Rs. 10.2B* Development Rs.15.7B** Developing cities and villages ■ 10,000 waste collection workers to be employed to manage waste and enhance hygiene ■ Rs. 3,900M for the development of infrastructure and municipal services in select districts with EU's assistance. Rs.1,800M for construction of Northern Section of Ring Road (Missing Link), from Warsak Road to ■Nasir Bagh Road. ■ Rs. Rs. 550M to assist in transforming the city of Peshawar under the Peshawar Uplift Programme. ■ Rs. 200M for construction of northern section of Ring Road (Missing Link), Peshawar from Pajjagi road to Warsak Road. ■ Rs. 300M for the rehabilitation of rural roads in the province. ■ Construction of bus terminal in Khyber Pakhtunkhwa. ■ Development of parks in the province. Landfill sites in select districts including Manseha, Chitral, Swat and Dir Upper. ■ Construction of Fruit & Construction of slaughter houses in selected tehsils Vegetable Market in selected Tehsils Salary Rs. 3.8B Operations Rs.3.8B Providing water supply ■Gravity Flow Water Supply Scheme, District Mansehra ■ Rs. 830M for construction of Drinking Water Supply & Sanitation Schemes Rs. 200M for solarization of 400 water supply schemes, gravity Schemes and high head Schemes without Solar in Khyber Pakhtunkhwa Construction of Utla Dam for Drinking Water Supply Scheme in Gadoon Area, Swabi Rs. 210M for Drinking Water Supply from Indus River in Kohat Development Rs. 3.6B Where possible figures have been rounded to nearest integers. Moreover, *Rs. 6.2B octroi share to TMAS and others, Rs. 1B as UIPT share to TMAS ** Inclusive of local government and urban development sectors www.finance.gkp.pk <77#8078> TOURISM MAJOR PROGRAMMES Salary Rs. 0.6B Operations Rs. 2B Tourism & Sports ■ Rs. 1,100M for tourism promotion and destinations development through World Bank assisted KITE program. ■ Rs. 330M for development of 1000 Playing facilities in Khyber Pakhtunkhwa. ■ Rs. 370M for tourism roads in the Malakand and Hazara divisions for promotion of unexplored tourist spots. ■ Rs. 440M for construction of Arbab Niaz Cricket Stadium for promotion of International ■ Cricket in the province Development of the new Tourism Authority to promote tourism in the province Development Rs. 4B • Development of tourism spots across the province. ■ Establishment of playgrounds in the province Where possible figures have been rounded to nearest integers. www.finance.gkp.pk#81ECONOMIC DEVELOPMENT, EMPLOYMENT AND ENERGY MAJOR PROGRAMMES Economic Development & Employment ■ Over 1 million people to benefit from provision of credit guarantee to 10,000 SMEs. ■ Over 500,000 people to benefit from providing interest free microfinance to 30,000 enterprises ■ Generate new jobs in high growth economic sectors, assited by the ERKF World Bank programme. ■ Under Billion Trees Tsunami, 25,000 workers to be employed to plant 195 million trees. ■ Provide incentives in economic zones. ■ 100 acres land acquisition for marble city Buner Revitalizing key sectors, supporting businesses and generating jobs in the province Rs 290M for digital jobs for Khyber Pakhtunkhwa (MDTF Assisted) Funding to fast track the development of access to the Rashakai Economic Zone ■ Provide high class demand based training by the best training providers in the country, linked to employment. Establishment of KP Skills development Fund to manage skills development in KP, ensuring fast delivery and good corporate standards. Access & Energy ■ Rs. 800M for construction of 88MW Gabral-Kalam Hydro Power Project, Swat. ■ Rs. 600M for construction of 157MW Madian Hydro Power Project, District Swat. ■ Rs 5,700M for Provincial Roads Rehabilitation Project under PKHA Portfolio in collaboration with ADB. Rs 4,200M for dualization of Mardan-Swabi Road in collaboration with ADB. ■ Rs 3,500M for rehabilitation and construction of roads (835 KMs) in all divisions of Khyber Pakhtunkhwa Solarization of 4000 Masajid, and multiple schools, BHUS throughout the settled districts. ■ Construction of 356 Mini/Micro Hydro Power stations in Khyber Pakhtunkhwa (Total capacity 35.6 MW) Where possible figures have been rounded to nearest integers. www.finance.gkp.pk <79#8280> Sector-wise Budgets Newly Merged Areas www.finance.gkp.pk#83DEPARTMENTAL AND SECTORAL ALLOCATIONS MERGED DISTRICTS (1/2) Department Current Development AIP Total Agriculture 1,147 777 738 2,677 Auqaf & Religious Minority 00 145 00 185 Bureau of Stats 09 00 00 00 Communication & Works 1,698 4,104 2,560 9,197 Elementary & Secondary Education 19,825 2,647 1,110 7,759 Energy & Power 00 Environment Excise and Taxation 00 888 1,000 10 66 Finance 9,223 10 Forestry 579 626 General Administration 502 58 Health 7,989 2,363 Higher Education 2,334 847 Home Department 19,050 724 888888888 1,699 00 00 00 00 00 00 100 00 8,251 00 1,603 00 1,660 www.finance.gkp.pk < 81#8482> DEPARTMENTAL AND SECTORAL ALLOCATIONS MERGED DISTRICTS (2/2) Department Current Development FPA AIP Total Industries Information and Public Relations 15 Information Technology Irrigation 355 13 529 42 1,031 1,615 33 00 131 191 2,031 Law & Justice Local Government Mines and Minerals 1,042 262 145 2,614 70 120 888888 00 100 148 00 50 50 181 00 4,721 6,943 00 100 1,404 00 840 3,599 00 70 260 Planning and Development 61 888 6,061 1,139 8,149 Population Welfare 10 32 Public Health Engineering 1,021 1,926 Relief, Rehabilitation and Settlement 17,107 81 Revenue & Estate Social Welfare Sports, Culture, Tourism Technical Education Transport Zakat & Usher ཙྪིཤྩ 8 དཱི 8 4,822 564 84 1,271 888 88888888 00 00 42 00 1,407 4,354 00 1,961 19,149 600 5,986 00 400 567 35 3,200 4,532 00 100 00 888 217 100 05 www.finance.gkp.pk#85HEALTH SECTOR MAJOR PROGRAMMES Salary Rs. 6.7B Operations Rs. 1.4B Development Rs. 10.6B Health ■ Rs. 1,000M for medical supplies of BHS, RHCS, THQ and DHQs, specifically for diseases such as HIV, TB and Hepatitis. ■ Rs. 800M for outsourcing 06 Type D Hospitals of Merged Areas through Health Foundation ■ Rs. 1,000M for provision for standard Medical equipment/ non-medical equipment at Secondary hospitals ■ Rs. 1,000M for recruitment of doctors in remote areas at special package. ■ Recruitment of 100 Specialists (consultants) with contractual KPIs for key specialties. ■ Rs. 100M for Regional Blood Center along with screening, storage, transportation of blood to DHQs ■ Rs. 100M for recruitment of nurses, paramedics for Merged district Health facilities. ■ Rs. 50M for Establishment/Strengthening of Trauma centers at DHQs Where possible figures have been rounded to nearest integers. www.finance.gkp.pk < 83#8684> EDUCATION AND HIGHER EDUCATION MAJOR PROGRAMMES Salary Rs. 18.6B Operations Rs. 1.3B Development Rs. 11.6B Education ■ Rs. 2,000M for the provision of Basic and Missing Facilities through Parent Teacher Commit- tee-led conditional grants. ■ Rs. 3,700M for provision of stipends and scholarships for students of merged areas. ■ Rs. 250M for upgradation of 73 high schools to Higher Secondary level and 69 middle schools to high level. ■ Sufficient amount allocated for recruitment of teachers at Primary, Middle & High Levels. ■ Rs. 50M for the education voucher scheme. ■ Reconstruction of partially damaged schools. Sufficient amount for upgrading schools (boundary walls, furniture, toilets, drinking water and classrooms) and provision of furniture Equipment in functional Schools. Salary Rs. 2.3B Operations Rs. 0.06B Higher education ■Rs. 500M for improvements in existing Government colleges. ■ Rs. 495M for provision of transport solution to higher education facilities ■ Rs. ~400M for construction of Government colelges in FR Kohat, Bajaur, and Khyber Agency ■ Rs. 200M for provision of stipends and scholarships for students of merged areas. ■ Performance based package for the teaching faculty and provision of staff to existing colleges. Development Rs. 2.5B Where possible figures have been rounded to nearest integers. www.finance.gkp.pk#87TOURISM MAJOR PROGRAMMES Development Rs. 4.5B Tourism & Sports ■ Rs 1,200M for establishment and upgradation of sports facilities Rs 1,150M for Youth development package and to establish youth facilites ■ Rs. 100M for the economic Uplift of Youth (Start-up Programmes). ■ Rs. 100M for establishment of Art and Culture Centers ■ Rs 400M for promotion and holding sports activities ■ Establishment/Development of Tourist Destinations, Tourism Information Centers, Picnic spots and Rest Areas ■ Pomotion/holding of Tourism activities and festivals and beautification and promotion of potential Tourist Areas. Salary Rs. 1.4B Operations Rs. 0.4B Development Rs. 16B Improving Access ■Rs. 1,500M for construction of 54km Mirali-Shawa and Thall road, North Waziristan and Barang tunnel to connect Bajaur to Swat expressway. ■Rs. 1,000M (Rs. 473 M) for improvement of road from Khar to Timergara and Toor Ghundi-Khar Road, 37 Km. ■ Rs. 1,000M for improvement of Khar Mamad Gat, 33 KM Road. ■ Rs. 800M for rehabilitation of 14 KM road from Pir Qala to Ghalanai. ■ Rs. 400M for improvement of roads in Kurram (Ghiljo-Nikah Ziarat 35KM) ■ Rs. 250M for widening of the existing 64 KM Main Ghallany road to Sar Lara. ■ Construction of 100 Km internal Roads in Spinkai and Wana SWA ■ Rehabilitation of 28 KM Frontier Road from Matani to Takhtabaig Where possible figures have been rounded to nearest integers www.finance.gkp.pk <85#88WATER SUPPLY MAJOR PROGRAMMES Salary Rs. 0.6B Operations Rs. 0.4B Development Rs. 3.4B Access to water ■ Rs. 1,000M for construction of Jabba Dam, district Khyber. ■ Rs 900M for improvement of irrigation channels and water ponds ■Rs 700M for construction of water storage reservoirs ■Rs 1,140M for solarization and rehabilitation of DWSS schemes including Gravity Based schemes ■ Rs 500M for construction on new feasible small dams Where possible figures have been rounded to nearest integers. www.finance.gkp.pk 86>#89Empty#90For more information and feedback: FINANCE DEPARTMENT Government of Khyber Pakhtunkhwa Finance Department Khyber Pakhtunkhwa GOKPFD +92 (91) 9210531 finance.gkp.pk ADMAX