KPK unveils Rs1,754bn surplus budget for 2024-25

Peshawar: The Khyber Pakhtunkhwa Assembly on Friday announced a surplus budget of Rs1754 billion for the fiscal year 2024-25.

The government prioritizes affordable and quality healthcare, dedicating significant resources to this sector.

The budget session, which commenced two hours late, was chaired by Speaker Babar Saleem Swati.

 Finance Minister Aftab Alam presented the budget in the presence of KP Chief Minister Ali Amin Gandapur.

In his speech, the Finance Minister noted that the people have given a clear mandate to the PTI in the recently held election. He highlighted the PTI's commitment to providing equitable and accessible health facilities, expanding educational institutions, and launching various programs to enhance education quality. According to Alam, these initiatives have steered the economy towards development.

Alam mentioned that under the NFC award, the annual share for the merged districts is Rs262 billion, although the province receives less than its fair share each year.

The budget also proposes a fixed sales tax rate for marriage halls while offering significant relief in property taxes.

Specifically, the property tax on factories remains Rs2.5 per square foot, with a proposed increase in the property tax per kanal from Rs10,000 to Rs10,600. Alam pointed out that income from tobacco should go to the province rather than the federal government following the 18th amendment.

The budget document reveals a surplus of Rs100 billion, with a total budget exceeding Rs1600 billion and over Rs600 billion allocated for salaries.

The KP government is expected to receive Rs1,212 billion from the federal government, including the share for the erstwhile FATA region. The province aims to generate Rs93 billion from its own resources, with a tax target of Rs63 billion. The share for the merged districts is projected at Rs72 billion, and an additional Rs55 billion is anticipated from federal grants.

Proposed allocations include Rs34 billion for health facility cards and Rs26 billion for the wheat subsidy. Additionally, Rs9 billion is earmarked for providing free books to students, Rs3 billion for the BRT subsidy, Rs2.5 billion for relief activities, and Rs12 billion for various programs under the Ehsaas initiative, including the Rozgar, youth, and talented programs. The Ehsaas Apna program, which aims to construct 5,000 houses, is allocated Rs3 billion.