GOVERNMENT OF KHYBER PAKHTUNKHWA BUDGET STRATEGY PAPER ( )

Transcription

1 GOVERNMENT OF KHYBER PAKHTUNKHWA BUDGET STRATEGY PAPER ( )

2 Contents Overview... 1 Macro-Economic Performance Fiscal Policy Statement Medium Term Fiscal Framework Revenue... 6 Expenditure... 7 Debt... 8 Policy Priorities... 8 Sectoral Priorities & Initiatives... 9 Recurrent Budget Ceilings

3 Overview The Budget Strategy Paper (BSP) being an important element for ensuring participatory democracy, inclusivity and ownership in policy formulation embeds a strategic top-down approach, complemented by a participatory bottom-up approach that empowers line departments to bid for resources strategically, and in line with the overall expenditure ceilings. The Budget Strategy Paper ( ) is based on the following guiding principles: The Medium Term Fiscal Framework under the Medium Term Budgetary Framework. This serves as the top-down hard budget constraint. Fiscal planning, particularly annual budgeting, with a focus towards a medium term outlook, whilst at the same time endeavouring to improve effectiveness and efficiency in budgetary processes. Alignment of spending with policy priorities and the reforms agenda of the Provincial Government for Change. Overall spending ceilings, based on sectoral strategic priorities for the forthcoming year and indicative estimates for a further two years. Budget is an important economic policy instrument of the Government which translates its political vision and commitment into reality. However, budget making has never been an easy business in the present socio-economic circumstances. The country's economy has been in the grip of acute energy shortages, heightened security challenges, persistent inflationary trends, limited capital inflows, natural disorders and fallout of the global financial crisis. All these factors have restrained economic growth. Besides, the reconsideration of 1% grant for war on terror in the 8 th NFC Award and the non-availability of Net Hydel Profit Arrears during will cause a huge dip in the provincial resource envelop. The Provincial Government of Khyber Pakhtunkhwa despite all these challenges is firmly committed to graduate from stabilization to growth and from growth to inclusive development through the attainment of: A stable and peaceful political environment; Consistent and harmonized policy formulation and its effective implementation and oversight; Inclusivity and participatory democracy in policy formulation; Macro-economic stability; Rule of Law; Devolution of power at the grass root level through strengthened local government system; Transparency and social accountability through Right to Information and Right to Services; and Strengthened Public Financial Management systems and processes. 1

4 Macro-Economic Performance The resource position of the Province had improved with the 7 th NFC Award mainly in the recovery of arrears of Net Hydel profits, revenues on account of straight transfers, and royalty on crude oil and gas. Besides, for better financial management, Khyber Pakhtunkhwa has been granted incentive bonus of Rs. 1.5 billion for the first three quarters of the Financial Year by the Federal Government. But the successive increase in salaries and pension has wiped out the fiscal space available for initiating major income generating projects. Khyber Pakhtunkhwa is blessed with precious natural resources like petroleum, water, forests & minerals. To exploit these potentials the Provincial Government is pursuing income generating projects especially in power sector. Work has been initiated on many power generation projects, through public sector funding or Public Private Partnership. Major thrust of the present political Government is the agenda for change. The agenda for change is spearheading as envisioned. Multiple initiatives and reforms have been undertaken and many are in the pipeline. These initiatives include addressing the issue of law & order, security, unemployment, energy crisis, restoration of business and economic activity etc. A number of short and medium term strategic reforms have been introduced in Education, Health, Information Technology, Mines and minerals, Tourism, Forestry, Agriculture, Land revenue, Taxation, Works, Public Sector Procurement and Governance Sectors. The public sector service delivery network has become responsive; the processes have become transparent, efficient and productive. At the same time private sector is being encouraged to step forward and invest in the Province for long term sustained economic development and creation of employment opportunities, leading to a peaceful, tolerant, stable and prosperous society. The Provincial Government has embarked upon a fast track programme of reforms and change; gist of the multi-dimensional initiatives and reforms are as under; Establishment of Chief Minister s Complaint Cell Establishment of Ehtesab Commission Establishment of Access to Service Commission Establishment of Conflict of Interest Commission Establishment of Access to Information Commission Establishment of Consumer Courts and Family Courts Devolution of power at the grass root level under LGA 2013 Establishment of Economic Reforms Commission Establishment of Khyber Pakhtunkhwa Revenue Authority Establishment of Austerity Commission Establishment of Public Procurement Regulatory Authority Automation of Land Record & Updation of Land Valuation Tables Public Financial reforms and consolidation of MTBF and OBB Establishment of Khyber Pakhtunkhwa Oil & Gas Company Establishment of Energy Task Force Launching of Mass transit program Launching of Tameer-e-School Programme Establishment of Independent Monitoring Unit in E&SE Establishment of Youth Challenge Fund Sihat-ka-Insaf Programme Establishment of Endowment Fund for the help of windows and destitute Launching of Clean and Green Peshawar Programme Successful rollover of KhudKifalat Rozgar Scheme Billion trees tsunami 2

5 Fiscal Policy Statement % increase on running basic pay of all Provincial Government Regular Employees w.e.f. 1 st July % increase in the Medical Allowance of Provincial Government Employees in BPS-1 to BPS-15 w.e.f. 1 st July % increase in the Conveyance Allowance of Provincial Government Employees in BPS-1 to BPS-15 w.e.f. 1 st July % increase in the Pension of all Provincial Government Pensioners w.e.f. 1 st July Increase in minimum wage rate from Rs. 10,000 per month to Rs. 12,000 per month. 6. Increase in minimum pension rate from Rs. 5,000 per month to Rs. 6,000 per month. 7. Grant of one premature increment to the regular employees of the Provincial Government in BPS-1 to BPS Complete ban on creation of posts except posts required for completed Developmental Projects. However, in case of exigencies, the Chief Minister may relax the ban on case to case basis. 9. Complete ban on treatment/travel abroad on Provincial Government s expense. 10. Complete ban on purchase of vehicles. Project vehicles shall be exempted. However, in case of exigencies, the Chief Minister may relax the ban on case to case basis. 11. Regular meetings of Departmental Accounts Committee to be held by all Administrative Secretaries and Heads of Autonomous/Semi-Autonomous Bodies, being Principal Accounting Officers, to ensure internal audit of their respective Departments. 12. Monthly meetings to be held by the Administrative Secretaries and Heads of Autonomous/Semi-Autonomous Bodies to achieve the budgeted Provincial Revenue targets. Minutes of meetings may be sent to Finance Department regularly. 13. No appointment of contingent paid staff to be made during the course of the financial year without prior approval of Finance Department. 14. No appointment against leave vacancies to be made without prior approval of Finance Department. 15. No appointment of retired Government Servants to be made against regular (permanent/temporary) posts. 3

6 16. No appointment against vacant posts to be made without obtaining NOC from the Establishment Department where the Surplus Pool is being maintained. 17. Participation in workshops/seminars and training abroad involving Provincial Funds, to be considered only in very special cases with the approval of the Chief Minister on case to case basis % reduction in POL charges, without limit POL allocation will not be allowed. 19. Consumption of Electricity to be economized. 20. All government rest houses/guest houses etc. may be managed on commercial basis through appropriate institutional arrangements. 21. All new Government houses constructed for public civil servants and public representatives, from the public exchequer will not exceed an area of 20 marlas. 22. Expenditure to be restricted to the budgetary releases and no expenditure to be incurred by Administrative Departments in anticipation of additional grants or supplementary grant. 23. No development scheme involving creation of posts to be considered without prior clearance of Finance Department. 24. No receipts to be retained in Bank Accounts by any Department. All receipts must be remitted to Provincial Consolidated Account forthwith by the departments except where departments/facilities have been specifically permitted under Statute/Act. 25. Expenditure on Advertisements & Publicity to be restricted to the bare minimum. 26. Allow Orderly Allowance for the Officers in BPS-20 and above at the rate of Rs.12,000/month. 4

7 Medium Term Fiscal Framework PKR In Million B.E R.E B.E Forecast Forecast Total Revenue 344, , , , ,869 Federal Transfers 249, , , , ,772 Federal Tax Assignment 198, , , , ,167 1% for War on Terror 23,823 22,069 27,290 31,111 35,466 Straight Transfers 27,496 29,312 29,263 35,116 42,139 Provincial Tax & Non Tax Revenue 16,921 20,645 28,781 32,593 36,603 Provincial Tax Receipts 10,288 12,638 19,453 22,275 25,189 Property tax General Sales Tax(Provincial) 6,000 8,000 12,000 14,000 16,000 Excise duties Stamp duties Motor vehicles tax 1, ,109 1,242 Infrastructure Development Cess 0 1 2,000 2,240 2,509 Other 2,398 2,929 3,567 3,924 4,316 Provincial Non-Tax Receipts 6,633 8,007 9,328 10,318 11,414 Interest Irrigation Hydel Own Generation 2,361 2,800 2,850 3,192 3,575 Others 3,738 4,666 5,862 6,448 7,093 Profits from Hydro electricity 31,000 31,000 12,000 6,000 6,000 Grants 31,172 34,920 27,558 35,682 46,244 Population Welfare Incentive on Cash Balance 0 1, Funds Transferred from District 0 5, A/C-IV PSDP(Federal) 0 2, Foreign Grants (PDMA) 0 1,679 0 Foreign Grants (Others) 0 6,733 Foreign Grants (FPA) 30,695 16,295 27,081 35,205 45,767 Capital Receipts 4,555 5,531 8,519 10,250 10,250 Recovery of Investment & loans Access to Justice Programme Foreign Loans (FPA) 4,305 4,765 8,269 10,000 10,000 Operational shortfall 10,764 14,704 12,000 15,000 15,000 Likely Availability of NHP arrears ,272 34,500 37,000 Total Expenditure 344, , , , ,869 Current Expenditure 211, , , , ,403 Wages 125, , , , ,151 Pension 24,000 24,100 31,000 39,680 50,790 Non-wage O&M and Contingency 30,645 35,999 37,106 42,672 49,073 5

8 Relief Measures 3,707 2,959 4,202 4,623 5,085 Subsidy 2,500 2,500 2,715 2,715 2,715 Transfers to Local Councils 3,741 3,741 4,115 4,526 4,979 Investment & committed: contribution 10,000 10,000 12,000 13,200 14,520 Interest Payments 11,169 11,169 13,090 13,090 13,090 Capital Expenditure 15,000 15,000 15,000 10,759 10,152 Domestic Debt 1,200 1,185 1,530 1,530 - Federal Debt 3,125 3,125 8,205 3,437 3,781 Foreign Debt 4,385 4,400 4,975 5,473 6,020 Initiatives & Others 6,290 6, Fiscal Space 118, , , , ,315 Development Expenditure 118, , , , ,315 ADP(Provincial) 83,000 80,154 98,378 79,526 85,084 ADP(Districts) - - 1,672 34,080 36,464 PSDP - 3, FPA 35,000 21,060 39,755 45,205 55,767 Total Revenue 344, , , , ,869 Total Expenditure 344, , , , ,869 Surplus /Deficit Revenue The Government of Khyber Pakhtunkhwa is highly dependent on transfers from the Federal Divisible Pool. Hence, the slippage of tax collection targets by Federal Government; discontinuity of Rs. 25 billion per annum on account of NHP arrears from ; uncertain and erratic payment of NHP coupled with low base of provincial own receipts adversely affect the overall resource envelop of the Province. In light of the 7th NFC Award the net proceeds of the Divisible Pool are distributed among the Federation and the Provinces in the ratio of 57.50: Khyber Pakhtunkhwa gets 14.62% of the Federal divisible pool which amounts to Rs. 254, million inclusive of the earmarked additional resources of Rs. 27, million for war on terror (1% of the Federal divisible pool/1.8% of the Provincial divisible pool) for the year The instalments of Net Hydel arrears were being paid to the Province since 2009 to , which has now completed but huge amount of arrears are still pending against the Federal Government/WAPDA which makes a total of Rs billion. Consultations at the highest level have resulted in a decision by the Federal Finance Minister for convening a Secretary level meeting for resolution of the issue at the earliest. On the other hand, Provincial Government is transferring 10% share of Net Hydel Profits receivable from WAPDA/Federal Govt. to the respective Districts where the dams are located. The funds are meant to be utilized on Developmental activities in these Districts. Provincial Government is continuously exploring avenues for enhancing provincial revenues out of which Hydel Power generation can be the major future source. Estimated receipts for are Rs. 2, million. 6

9 The Provincial Government gets revenues on account of royalty on oil and gas, gas development surcharge and excise duty on gas. Production bonus is being granted to those districts where oil & gas reserves have been discovered. The funds are spent through Petroleum Social Development Committees (PSDC). A sum of Rs million has been transferred to the districts as production bonus during Besides a sum of Rs million is being spent on social welfare projects in the said districts, during the current financial year and the same amount is proposed to be spent during next financial year The Provincial Government has decided to transfer 10% share of receipts on account of Oil/Gas receivable from Federal Government to the respective districts where well heads of oil / gas are located. A sum of Rs. 1, million has been released to the concerned Districts i.e. Kohat, Karak & Hangu during Provincial Government has established Khyber Pakhtunkhwa Revenue Authority (KPRA) for the collection of GST on services after the subject has been provincialized. The province has collected Rs. 8,000 million in financial year The estimated Provincial Own Receipts (Tax & Non Tax) for are Rs. 28, million with a remarkable increase of 70% over Expenditure The Supplementary Budget for stands at Rs billion mainly comprising of unanticipated expenditure on account of increase in pay and pension and higher expenditure outlays on public order and safety arising from the deteriorating law and order situation. This caused 8% deviation from the original approved budget of , which is not a good indicator of sound system of budgeting and hinders the aggregate fiscal discipline of the province. Budget is proposed as a portfolio of Rs billion with an increase of about 18% over last year, consisting of Rs.250 billion as current expenditure, Rs.15 billion as current capital expenditure and Rs billion as development expenditure. The major chunk of current budget continues to go to the salary and pension expenditure. A total of 7,256 posts were created in whereas for ,732 new posts are proposed. With 71% of the current budget going to pay and pensions, the remaining 29% is allocated to debt servicing, subsidy on wheat, committed contributions for different funds and non-salary expenditure of all departments, such as utilities, repairs, electricity, purchases, POL and all types of unforeseen expenses etc. Budget has been prepared in a way to ensure not only macroeconomic stability, but also to provide a platform for growth, effective service delivery, job creation and ultimate improvement in the quality of life of ordinary people. Emphasis remains on economic revival and pro-poor welfare schemes, with an array of policy priorities as the agenda for change. Education, health and security being the priority sectors gained an increased budgetary allocation in i.e. about 45% of the total proposed budget. The budget allocation proposed for Elementary & Secondary Education is Rs billion, Higher Education Rs billion, Health Rs billion and Law & Order Rs billion. 7

10 The Government had initiated a number of pro-poor schemes during the past several years, exhibiting innovative ways of improving service delivery. These include several initiatives to improve and promote education in the province, providing improved healthcare services and coverage, motivation of the youth and utilisation of their potential etc. Most of these schemes have been highly effective in providing opportunities to the general public for socio-economic growth. While these special initiatives were managed through the current side of the budget in the previous years, for they have been moved to the development side for harmonization of efforts to improve service delivery. Debt All Foreign Exchange Loans are handled by the Federal Government. These loans are used for the financing of specific developmental projects. Outstanding liability on account of these loans is Rs. 88, million (closed projects) and Rs. 31, million (on-going projects).the outstanding debt liability of the Provincial Government on account of Federal Cash Development Loans is Rs 7, million. Thus, the total outstanding debt against the Provincial Government as on 1st July, 2014, is Rs. 128, million. Policy Priorities Social Services Growth Governance Implementing education emergency. Provision of basic amenities to general public. Expanding and improving the coverage and quality of health services. Free medical facility for the poor. Protection of minorities and their places of worship. Exploitation of natural resource potential. Rehabilitation of infrastructure. Reduction in load shedding and construction of Hydel Power Projects. Promotion of business activities and incentives to the private sector. Enhancement of growth and productivity through targeted income generating schemes. Development of agriculture with special focus on small farmers. Launching skill development schemes. Rehabilitation of sick industries and incentives for attracting investment in the Province. Ensuring austerity in governance. Establishment of Local Government system. Reforms in Thana and Patwar culture. Struggle for resolution of the outstanding financial issues with Federal Government. Elimination of VIP Culture. 8

11 Sectoral Priorities & Initiatives In education sector, the policy of the government is to ensure achievement of Millennium Development Goals by 2015; ensuring that participation rate at primary level attains 100% while secondary level participation to be enhanced by 50; enhancing quality of education standards in Khyber Pakhtunkhwa; and removing gender and ethnic disparities. The Government of Khyber Pakhtunkhwa will promote primary education, reduce the gender gap, and create an enabling environment by fulfilling the requirements of existing institutions including staff, equipment, furniture, teachers training, additional classrooms and essential repairs. Education system will be standardized and the conditions of existing schools will be improved. As per the revised policy the two-classroom primary schools will be upgraded to standard six-classroom primary schools with six teachers. Furniture will be provided to 5,000 schools for which an amount of Rs. 2,500 million have been allocated this year. Appropriate infrastructure will also be provided at primary schools for Early Child Care Education. Additionally, laboratories will be established and modern equipment will be provided. Rs. 2 billion has been allocated for special initiatives including the provision of missing facilities through PTCs. Rs. 700 million have been allocated for the continuous capacity building of PTCs. To ensure good quality education, trainings will be imparted to teachers and managers for which an amount of Rs. 800 million has been allocated. Female education will be incentivized and talented and poor students will be awarded through multiple avenues, including an endowment fund of about Rs. 52 million. The status of health services in Khyber Pakhtunkhwa is complex, with the private sector providing 70% to 80% of all services. Deteriorated performance against health indicators such as skilled births attended and immunisation is particularly worrisome. Key polices of the government are; up gradation of health care facilities; Building upon and improving health delivery systems and health management systems with measurable impact on health MDGs 4, 5 & 6; social protection for low income and vulnerable groups; capacity building for evidence and outcome based planning and focusing on community led community health programmes and public private partnerships. Improvements in management and emergency response are also included. Some of the new initiatives which will be funded during the current budget are as follows; Preventive health being one of the priorities of the department, a special initiative is launched to support Mother and Child Health. A fund will be created at the initial allocation of Rs. 300 million. 10 districts will be selected on the basis of high incidence maternal mortality. In these districts, female population living below the poverty line shall be provided cash grant of Rs. 200 at the time of medical check-up from a qualified doctor once in three months. Similarly, at the time of delivery from a qualified doctor or a mid-wife, Rs of cash grant will be given. Immunization rate in Khyber Pakhtunkhwa has remained low. In order to improve the immunization rate; 10 districts with least immunization coverage will be selected. In these districts, the families which are in poverty bracket and in which children complete the immunization course will be rewarded with Rs per child. For this purpose Rs. 200 million are included in the budget. Keeping in view the low health status and law and order situation of the province, it was deemed necessary to further strengthen the emergency services in major hospitals of the province. In order to cope with the situation, all teaching and district head quarter hospitals will be provided with free emergency services. A fund of worth Rs. 1 billion has been allocated to serve the purpose. 9

12 A fund for provision of free treatment for critical illnesses (Renal disorders, hepatitis) worth Rs. 500 Million has been earmarked. The province is currently dealing with double burden of disease and for this purpose a considerable effort was required to curtail the prevalence of non-communicable diseases such as diabetes, cardiovascular diseases, injuries etc. In order to contribute to this endeavour establishment of Insulin Bank has been proposed in 10 districts and the leading autonomous hospitals of the province with a Rs. 25 Million. An enhanced capacity of the paramedical staff is of utmost importance to improve the health services. A skill development programme for higher nursing education worth Rs. 500 Million was reserved. A massive new program Poverty Eradication Initiatives will be commissioned which will be implemented all over the province and ensure medical & surgical supplies, construction of community midwifery centres through micro health franchise model and child health initiatives. Department with the support of KFW is introducing a Social Health Protection scheme with the main focus on demand side financing. On one hand, it will address the issue of catastrophic illnesses and on the other hand, will facilitate the services for maternal child health to the poorest 18% population. The scheme will be launched in Mardan, Malakand, Chitral and Kohat. The government will ensure 80% coverage of outreach services to the population at their doorstep and implementation of MHSDP in 50% of the facilities through an integrated PC-1 which is mainly focused on maternal child health and nutrition services. The PC-1 has an allocation of billion with provincial allocation worth 1 billion for the current year. Mobile Medical Services project will be initiated to expand outreach services in the remote areas of the province. It has been launched in 15 districts of the Province. An Independent Monitoring Unit will be established to gauge the performance of the department at all levels. In energy and power, the Khyber Pakhtunkhwa does not take full advantage of its hydel potential. Two broad possibilities are raised. First, the province can earn revenue by selling electricity on the national grid. Second, the province can set up electricity stations that, while covering their costs, could sell power within the KP at a lower rate. The lower price for electricity could help to offset some of the transport disadvantages arising from the province's geographical location that affect competitiveness. Currently, two hydel projects at Machai and Ranolia are complete and from the next financial year will add 20 megawatt electricity to the national grid. In addition, three projects are ready for construction these are Sharmai (150 mw), Shahgai (144 mw) and Zandoli (132 mw). These projects await approval by the Federal Government. One of the Government s top priorities is to resolve current energy crisis and enable sufficient supply of energy for commercial as well as domestic purposes. The establishment of Khyber Pakhtunkhwa Oil & Gas Company for increased oil and gas production and exploration in the province is one such landmark achievement. In addition to fast pace completion of hydel projects, some fast moving alternative energy projects will also be initiated. These include; Electrification of Un-Electrified villages through Solar/Alternate energy in remaining Districts of KP. Construction of 300 MW Balakot HPP District Mansehra, 14 MW Ghorband HPP District Shangla, 84 MW MatiltanGorkin HPP Swat, 69 MW LawiChitral, 10 MW Nandihar HPP 10

13 District Batagram, 51 MW MujigaramShaghore HPP District Chitral, 52 MW IstaroBooni HPP District Chitral, and 79 MW ArkariGol HPP District Chitral. Development of Renewable energy in Khyber Pakhtunkhwa Economic Management. About three quarters of the population in Khyber Pakhtunkhwa are at least partly dependent on agriculture. The policy of the government is to shift from conventional cropping patterns to high value, high yield varieties of crops, fruit and vegetables; to promote efficient use of water resources; to minimise the environmental risks associated with unsustainable means of agricultural production and reforming the agricultural marketing system to improve profitability, productivity and value for money for producers and consumers. Government will provide assistance to people through improved access to inputs and technology and through a programme of investment in land levelling and development and investment in water harvesting that is geared towards increased efficiency and productivity. Khyber Pakhtunkhwa is going through stagnation in industrial sector. This is partly due to law and order situation, flight of capital and energy shortages. The government aims to establish a Khyber Pakhtunkhwa Industrial Estate Development and Management Company to improve the investment climate in the province. Along with this, establishment of small and large industrial estates in various districts of the province is on the cards. Major opportunities exist for the expansion of employment through business creation in minerals development. Public investment in infrastructure will allow these opportunities to expand efficiently. Other reforms such as GIS mapping and geo-chemical survey will be introduced to uplift the mineral sector. Likewise private sector development will also be facilitated. Resources have been allocated for exploration of coal resources and other minerals in the Province. The services in technical education are constrained by limited funding. The Government is committed to improving the scope and content of technical education to match more closely the needs of employers in Khyber Pakhtunkhwa. Concrete steps taken by the Provincial Government are the operationalization of TEVTA as an autonomous body, adoption of National Vocational Qualification Framework, Khud Kafalat Scheme, Roshni Scheme, Youth Challenge Fund, Skill Development Programme and MASAADA Interest Free micro credit scheme. Urban Development. The Government has developed Urban Development Plans for 22 urban areas in Khyber Pakhtunkhwa. These cover the main public services, including water, sanitation, drainage, streets and public infrastructure to accommodate private services in transport, agriculture and trade. The government had also initiated a project Urban Policy Unit. Proposed Mandate of the Urban Policy Unit is to assist in formulation of Urban Provincial planning and policy framework, policies, byelaws and rules. It is to lead inter-departmental, inter-provincial and inter-cities coordination for synergies and integration, and to coordinate with donors on urban matters. The Urban Policy Unit has started as a Project, but will become a Regular Directorate of the P&D Department. The initiatives taken for the uplift of the Province are as follows: Designing and construction of Flyover at Phase-III entry, Hayatabad, Peshawar. Construction of Bus stands/terminals in selected districts of KP Establishment of Bachat Bazars in Selected Districts of KP. Modernization of slaughter Houses in Peshawar Region on Public Private Partnership on the concept of Lahore Meat Company. Mass Transit facility in Peshawar (PPP/Donor). 11

14 Slums & informal settlements up gradation Programme in Khyber Pakhtunkhwa. City Strategic Development Plan for Divisional Head Quarters in Khyber Pakhtunkhwa. Beautification of Peshawar city (through outsourcing). Peshawar uplift program Infrastructure. The policy of the government is to; enhance existing road densities through construction and up-grading of existing network; rehabilitation of roads that have outlived their design life; and construction of missing road links. A mega project will be executed with the assistance of JICA wherein 478 km s of roads and 11 bridges (with total span of 603 meter) will be constructed in the province by Demand for road transport has been expanding at a rate that is much faster than economic development as a whole. The feasibility and infrastructure provision for Mass Transit System in urban areas will be completed along with master planning for urban transportation. There are substantial opportunities for expanding the irrigated area in Khyber Pakhtunkhwa. The policy of the government is; sustainable development of irrigation infrastructure with focus on holistic management and institutional reforms; transparent and sustainable management of water resources; improving irrigation service delivery and improving on farm water management. The construction of water channels and new dams will be undertaken including GulDheri Dam, Dhoke Toru-Jhangra Dam, Kiyala Dam, and Kundal Dam & ZamirGul Dam District Kohat. Greater emphasis will be placed on maintenance, because of the growing constraints in overall water supply. In view of the likely impact of climate change, priority is also given to investment in water efficiency programmes and to flood protection. Tourism. In the long run, tourism offers a source of employment and income generation. Given the unsettled regional situation, the immediate prospects for international tourism are limited. However, it is worth exploring the prospects for attracting domestic tourists to the Northern Areas are bright. The key policies of the government are to develop a public private partnership framework; increased tourist traffic in the province by at least 10% every year for the next five years; ensure Rs 50 billion investment in the provincial tourism sector in the next five years. Major initiatives proposed in the upcoming years are holding of traditional & Tourism festivals, Broghal, Shandoor, Kalash, Food festivals and Khan-Pur festival; construction of water sports tourism facilities at Khan-Pur; Wooden Bridge and establishment of picnic spots at suitable places in MalamJaba. Targeted food subsidy under Pro-poor Special Initiatives to the tune of Rs. 6 billion through which more than 500,000 of the poorest people in the province will be provided cards to purchase wheat/flour at subsidized rates. The Community Driven Local Development Policy clearly outlines the GoKP major reform initiative of providing space to citizens to fully participate in development activities through governance institutions re-engineering and development project investments. In this regard the Government has allocated an amount of Rs. 500 million to initiate the activities of the programme. 12

15 Recurrent Budget Ceilings Fund/Department BE BE FBE FBE NC11053 LOANS AND ADVANCES 6, NC11054 STATE TRADING IN FOOD GRAINS AND SUGAR 85, , , , Salary Non Salary 84, , , , NC14054 STATE TRADING IN FOOD GRAINS AND SUGAR 1, , , , NC14056 DEBT SERVICING ( FLOATING DEBT ) 12, , , , NC14057 DEBT SERVICING (LOAN FROM FEDERAL GOVT. 8, , , , NC21001 PROVINCIAL ASSEMBLY Salary Non Salary NC21002 GENERAL ADMINISTRATION 1, , , , Salary , , Non Salary , , NC21003 TREASURIES Salary Non Salary NC21004 FINANCE DEPARTMENT 2, , , , Salary 1, , , , Non Salary NC21005 LOCAL FUND AUDIT Salary Non Salary NC21006 PLANNING & DEVELOPMENT DEPARTMENT Salary Non Salary NC21007 BUREAU OF STATISTICS Salary Non Salary NC21009 REVENUE & ESTATE DEPARTMENT 3, , , , Salary 2, , , , Non Salary 1, , , , NC21010 EXCISE AND TAXATION DEPARTMENT Salary

16 Fund/Department BE BE FBE FBE Non Salary NC21011 HOME DEPARTMENT 1, , , , Salary Non Salary NC21013 JAILS & CONVICTS SETTLEMENT 1, , , , Salary , , Non Salary NC21014 POLICE 23, , , , Salary 20, , , , Non Salary 3, , , , NC21015 ADMINISTRATION OF JUSTICE 2, , , , Salary 2, , , , Non Salary NC21016 HIGHER EDUCATION, ARCHIVES & 6, , , , LIBRARIES Salary 5, , , , Non Salary NC21017 HEALTH 22, , , , Salary 16, , , , Non Salary 5, , , , NC21018 COMMUNICATION AND WORKS DEPARTMENT 2, , , , Salary 2, , , , Non Salary NC21019 ROADS HIGHWAYS & BRIDGES (REPAIR) 1, , , , NC21020 BUILDING & STRUCTURE (REPAIR) , , NC21021 PUBLIC HEALTH ENGINEERING 4, , , , Salary 2, , , , Non Salary 2, , , , NC21022 LOCAL GOVERNMENT DEPARTMENT 1, , , , Salary , , , Non Salary 1, , , , NC21023 AGRICULTURE 2, , , , Salary 2, , , , Non Salary , NC21024 FISHERIES Salary

17 Fund/Department BE BE FBE FBE Non Salary NC21025 ANIMAL HUSBANDRY 1, , , , Salary 1, , , , Non Salary NC21026 CO-OPERATION Salary Non Salary NC21027 ENVIRONMENT AND FORESTRY 1, , , , Salary 1, , , , Non Salary NC21028 FORESTRY (WILDLIFE) Salary Non Salary NC21029 IRRIGATION 3, , , , Salary 1, , , , Non Salary 1, , , , NC21030 INDUSTRIES Salary Non Salary NC21032 MINERAL DEVELOPMENT AND INSPECTORATE OF Salary Non Salary NC21033 STATIONERY AND PRINTING Salary Non Salary NC21036 TECHNICAL EDUCATION AND MANPOWER 1, , , , Salary 1, , , , Non Salary NC21037 LABOUR Salary Non Salary NC21038 INFORMATION, CULTURE & PUBLIC RELATIONS Salary Non Salary NC21039 SOCIAL WELFARE, SPECIAL EDUCATION , , Salary

18 Fund/Department BE BE FBE FBE Non Salary NC21040 ZAKAT & USHER DEPARTMENT Salary Non Salary NC21041 PENSION 23, , , , NC21042 SUBSIDIES 2, , , , NC21043 GOVT INVESTMENT & COMMITTED CONTRIBUTION 10, , , , NC21045 AUQAF, RELIGIOUS, MINORITY & HAJJ Salary Non Salary NC21046 SPORTS, TOURISM & MUSEUMS Salary Non Salary NC21047 POPULATION WELFARE DEPARTMENT 1, , , , Salary , , Non Salary NC21048 INFORMATION TECHNOLOGY DEPARTMENT Salary Non Salary NC21049 DISTRICT NON SALARY NC21050 GRANT TO LOCAL COUNCILS 3, , , , NC21051 HOUSING DEPARTMENT Salary Non Salary NC21068 DISTRICT SALARY NC21070 INTER PROVINCIAL COORDINATION DEPTT Salary Non Salary NC21071 ENERGY AND POWER DEPARTMENT Salary Non Salary NC21072 TRANSPORT DEPARTMENT Salary Non Salary NC21073 ELEMENTARY AND SECONDARY EDUCATION 60, , , ,

19 Fund/Department BE BE FBE FBE Salary 56, , , , Non Salary 4, , , , NC21074 RELIEF REHABILITATION AND 5, , , , SETTLEMENT Salary Non Salary 4, , , , NC24001 PROVINCIAL ASSEMBLY Salary Non Salary NC24002 GENERAL ADMINISTRATION Salary Non Salary NC24015 ADMINISTRATION OF JUSTICE , , , Salary , Non Salary NC24020 BUILDING & STRUCTURE (REPAIR) NC24041 PENSION NC24051 DEBT SERVICING ( INTEREST PAYMENT ) 7, , , , NC24052 DEBT SER.VICING 3, , , , Grand Total 324, , , ,