PESHAWAR - The Pakistan Tehreek-e-Insaf (PTI)-led government in the Khyber-Pakhtunkhwa on Wednesday unveiled its fifth consecutive budget with a total outlay of Rs603 billion, calling it a tax-free, welfare, and development-oriented budget for the financial year 2017-2018.

The KP Minister for Finance Muzaffar Said Advocate presented the budget at the KP Assembly, which met with Speaker Asad Qaiser in the chair.

As the fifth budget of the PTI government, it was the second budget unveiled by Muzaffar Said as the earlier three had been presented by Sirajul Haq, chief of Jamaat-e-Islami (JI), a coalition partner in the provincial government.

Amid protest staged by the opposition lawmakers, Said told the house that the total outlay of the budget for the 2017-2018 was Rs603billion with 19pc increase against current fiscal budget of Rs505 billion.

The protesting opposition legislators staged walkout from the proceedings, they, however, later returned to the house.

The finance minister informed the house that Rs208billion had been allocated for the annual development plan with an increase of 29 per cent against the current year.

Earlier, presenting the budget, the KP cabinet met with Chief Minister Pervez Khattak in the chair and approved budget proposals for financial year 2017-2018.

Delivering the budget speech, the finance minster said that the government was working for human resource development from the day one.

Announcing 10 percent increase in the salaries and pension of the government employees after merger of 2010 ad-hoc relief, he said that minimum wage was increased from Rs14,000 to Rs15,000.

The increase in salaries and pension would cost the provincial kitty Rs16.5 billion.

The finance minister said that the province would receive Rs326 billion from the federal divisible pool, which was 11 percent more than the amount received in the outgoing fiscal year.

Besides, the KP would also get more than Rs39billion from the federal government for the war on terror.

This is also 11 percent more than the amount received in the financial year 2016-2017.

Likewise, the province would receive Rs24 billion as royalty of oil and gas reflecting 43 percent increase as compared to the amount received in the outgoing fiscal year.

The provincial finance minister informed the house that the KP would get Rs20.78 billion as net profit on electricity and Rs15 billion in arrears of the net profit.

He added that the province’s own receipts had been estimated at Rs68.31 billion for 2017-2018, while Rs82 billion would be met through foreign donor agencies for feeding the development programmes.

Terming it a balanced budget, he said that the receipts and expenditures had been pitched at Rs603 billion for the year 2017-2018.

He said that in order to ensure implementation of the development schemes, the province had decided to obtain Rs10 billion internal loan.

The KP finance minister said that Rs3.63 billion would be generated from the hydel power stations set up by the KP government in 2017-2018.

The province will obtain Rs45.21 billion from the tax and non-tax receipts during the next fiscal year, which also included Rs12.65 billion from service on the general sales tax.

He announced that the government had proposed to exempt government employees from Grade-1 to Grade-5 from house rent deduction, while rate of the daily allowance was being increased to 60 per cent.

The finance minister said that the present set up found all institutions and departments in disarray after taking over the government.

He said that a sum of Rs49.4 billion earmarked for health-related projects, Rs127.9 billion for the education sector and Rs29.7 billion for police.

The finance minister noted that the health budget represents a 31 per cent increase from the outgoing fiscal year’s budget.

He said that the “Billion Tree Tsunami Project” would continue, under which 200 million saplings would be planted, while 120 million saplings would be distributed for plantation.

The finance minister said that about 47,000 patients would get free treatment for tuberculosis (TB).

He said that 1,300 cancer patients would also get free treatment.

Moreover, the government has also planned to recruit 3,900 lady health workers for better service delivery.

He informed the house that the Insaf Health Card system would be extended to the entire province and about Rs1.8 million registered families would get Rs30,000 per member at the secondary care level and Rs250,000 per member at the tertiary care level treatment at the government and government-designated hospitals.

The government has set aside Rs14 billion for 77 schemes of the primary and secondary education, while Rs6.3 billion would be spent on 64 projects in the higher education sector.

Later, while presenting the Finance Bill 2017, he said government has proposed increase in tax ratio, imposition of new taxes on immoveable urban property, CNG plus general store, petrol pumps and service stations.

According to revenue proposals in the finance bill, tax ratio on immoveable urban property is being increased by 50 percent, while tax on personal residence in the provincial metropolis, the tax ratio on five-marla category A house has been increased from Rs1,000 to Rs1,500, Category B (from Rs900 to Rs1,300) and Category C (from Rs750 to Rs1,100) respectively.

Similarly, tax on 5-marla to 10-marla category A has been increased from Rs1,700 to Rs2,500, Category B (from Rs1,600 to Rs2,400) and Category C (from Rs1,500 to Rs2,300 respectively.

Furthermore, for immoveable urban property on over 10-marla to 15-marla for category A has been increased from Rs2,200 to Rs3,300, category B from Rs2,100 to Rs3,100, while tax on Category C has been increased from Rs2,100 to Rs3,000 respectively.

Tax on Category A immoveable property of over 40-marla has been increased from Rs30,000 to Rs45,000, Category B (from Rs25,000 to Rs37,500) and Category C (from Rs20,000 to Rs30,000).

Furthermore, ratio of professional tax on all Modarba companies and mutual fund corporate bodies’ has also been reviewed.

Tax on income up to Rs10 million but not exceeding Rs25 million has been proposed at Rs36,000.

Professional tax on cable operators has been proposed to increase from Rs1,000 to Rs10,000 wholesale dealers, agency holders and medical stores, which were earlier exempted from professional tax will pay Rs10,000.

Besides, the KP would also get more than Rs39billion from the federal government for the war on terror.

This is also 11 percent more than the amount received in the financial year 2016-2017.

Likewise, the province would receive Rs24 billion as royalty of oil and gas reflecting 43 percent increase as compared to the amount received in the outgoing fiscal year.

The provincial finance minister informed the house that the KP would get Rs20.78 billion as net profit on electricity and Rs15 billion in arrears of the net profit.

He added that the province’s own receipts had been estimated at Rs68.31 billion for 2017-2018, while Rs82 billion would be met through foreign donor agencies for feeding the development programmes.

Terming it a balanced budget, he said that the receipts and expenditures had been pitched at Rs603 billion for the year 2017-2018.

He said that in order to ensure implementation of the development schemes, the province had decided to obtain Rs10 billion internal loan.

The KP finance minister said that Rs3.63 billion would be generated from the hydel power stations set up by the KP government in 2017-2018.

The province will obtain Rs45.21 billion from the tax and non-tax receipts during the next fiscal year, which also included Rs12.65 billion from service on the general sales tax.

He announced that the government had proposed to exempt government employees from Grade-1 to Grade-5 from house rent deduction, while rate of the daily allowance was being increased to 60 per cent.

The finance minister said that the present set up found all institutions and departments in disarray after taking over the government.

He said that a sum of Rs49.4 billion earmarked for health-related projects, Rs127.9 billion for the education sector and Rs29.7 billion for police.

The finance minister noted that the health budget represents a 31 per cent increase from the outgoing fiscal year’s budget.

He said that the “Billion Tree Tsunami Project” would continue, under which 200 million saplings would be planted, while 120 million saplings would be distributed for plantation.

The finance minister said that about 47,000 patients would get free treatment for tuberculosis (TB).

He said that 1,300 cancer patients would also get free treatment.

Moreover, the government has also planned to recruit 3,900 lady health workers for better service delivery.

He informed the house that the Insaf Health Card system would be extended to the entire province and about Rs1.8 million registered families would get Rs30,000 per member at the secondary care level and Rs250,000 per member at the tertiary care level treatment at the government and government-designated hospitals.

The government has set aside Rs14 billion for 77 schemes of the primary and secondary education, while Rs6.3 billion would be spent on 64 projects in the higher education sector.

Later, while presenting the Finance Bill 2017, he said government has proposed increase in tax ratio, imposition of new taxes on immoveable urban property, CNG plus general store, petrol pumps and service stations.

According to revenue proposals in the finance bill, tax ratio on immoveable urban property is being increased by 50 percent, while tax on personal residence in the provincial metropolis, the tax ratio on five-marla category A house has been increased from Rs1,000 to Rs1,500, Category B (from Rs900 to Rs1,300) and Category C (from Rs750 to Rs1,100) respectively.

Similarly, tax on 5-marla to 10-marla category A has been increased from Rs1,700 to Rs2,500, Category B (from Rs1,600 to Rs2,400) and Category C (from Rs1,500 to Rs2,300 respectively.

Furthermore, for immoveable urban property on over 10-marla to 15-marla for category A has been increased from Rs2,200 to Rs3,300, category B from Rs2,100 to Rs3,100, while tax on Category C has been increased from Rs2,100 to Rs3,000 respectively.

Tax on Category A immoveable property of over 40-marla has been increased from Rs30,000 to Rs45,000, Category B (from Rs25,000 to Rs37,500) and Category C (from Rs20,000 to Rs30,000).

Furthermore, ratio of professional tax on all Modarba companies and mutual fund corporate bodies’ has also been reviewed.

Tax on income up to Rs10 million but not exceeding Rs25 million has been proposed at Rs36,000.

Professional tax on cable operators has been proposed to increase from Rs1,000 to Rs10,000 wholesale dealers, agency holders and medical stores, which were earlier exempted from professional tax will pay Rs10,000.