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Business Recorder
a day ago
- Business
- Business Recorder
KP unveils Rs2.1trn surplus budget
PESHAWAR: The provincial government of Khyber Pakhtunkhwa Friday unveiled a Rs 2119 billion surplus budget for the fiscal year 2025-26. No new tax has been introduced while salaries of government employees and pension of the retired employees are increased by 10% and 7%, respectively. The budget was presented by the Provincial Minister for Finance Aftab Alam Afridi. Chief Minister Ali Amin Khan Gandapur was also present in the house. Current expenditure for settled districts has been estimated at Rs. 1255 billion besides Rs.160 billion for the merged districts of the erstwhile Fata. Giving the break up, the finance minister said that in head of the federal receipts, the province will receive an estimated amount of Rs.1147.761 billion: Rs.137.912 billion in head of 1% of divisible pool on war against terrorism, a Rs.57.115 billion in head of straight transfer in royalty and surcharge on oil and gas, Rs.58.151 billion in head of windfall levy on oil, Rs.34.580 billion in head of net hydel profit and another receipts of Rs71.410 billion in head of arrears in head of net profit. He said the provincial own resources posted 38% increase due to expansion of tax net without the imposition of any new tax. In head of tax receipts, the province will collect an estimated amount of Rs.83.5 billion, and Rs.45.5 billion in head of non-tax receipts. Similarly, in head of capital receipts, the province will generate an amount of Rs.0.25 billion, and Rs.10 billion in head of other ways and means. The minister told the house about receipts from federal government in head of the current budget grant for merged district and an additional demand for current budget of Rs.63 billion, Rs.39.600 billion in head of annual development program, Rs.50 billion for accelerated implementation Programme (AIP), Rs.42.740 billion in head of 3% share from other provinces and Rs.17 billion for the temporarily displaced persons (TDPs). He said that Rs3.293 billion would be received from PSDP, Rs1506.92 billion from the federal receipts, Rs129 billion from provincial owns receipts, Rs10.25 from other receipts, Rs291.340mn from merged districts receipts and Rs177.188 from federal projects assistance. He said that no new tax has been imposed in the budget; rather tax net base has been enhanced with Rs83.5 billion tax receipts and Rs45.5 billion non tax receipts. He said the government has estimated Rs1255 billion current expenditures for settled areas including Rs288.514 billion for provincial salaries, Rs288.609 billion for tehsil salaries. He said that the government has allocated Rs547 billion for developmental expenditure, including Rs 195 billion for PADP, Rs39 billion for district ADP, Rs39.6 billion for merged tribal districts' ADP. Copyright Business Recorder, 2025
Arab News
2 days ago
- Business
- Arab News
Pakistan's Sindh, Khyber Pakhtunkhwa provinces to present budgets 2025-26 today
KARACHI: Pakistan's Sindh and Khyber Pakhtunkhwa (KP) provinces will present their annual budgets for the fiscal year 2025-26 today, Friday, in their respective assemblies, state-run media reported. The development will take place a few days after Pakistan's central government announced the federal budget for the fiscal year 2025-26 with a total outlay of Rs7.57 trillion ($62 billion). Finance Minister Muhammad Aurangzeb presented the budget in parliament on Tuesday, which allocates Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month. Pakistan's provincial governments announce their annual budgets typically a few days after the federal government. KP Minister for Finance Aftab Alam Afridi will present the budget in the KP Assembly at 3:00 pm, state broadcaster Radio Pakistan reported. 'In Sindh, Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance will present the budget in Sindh assembly in Karachi at three in the afternoon,' the report said. The state media said Pakistan's most populous Punjab province will announce its budget on Monday. The federal government announced a significant income tax relief for the salaried class in its budget earlier this week, aiming to ease the burden on people amid high inflation and economic uncertainty. The income tax rate for individuals earning between Rs600,000 and Rs1.2 million ($2,128–$4,255) annually would be cut from 5 percent to 2.5 percent. 'For those earning up to Rs22,000,000 [$7,788], the tax rate has been proposed at 11 percent instead of 15 percent. Similarly, those who earn a higher salary, there is a proposition of tax reduction,' Aurangzeb said. 'For those who are earning between Rs22,000,000 [$7,788] up to Rs32,000,000 [$11,328], the tax rate has been proposed to be reduced from 25 percent to 23 percent,' he added. For high-income earners making over Rs10 million ($35,460) annually, a 1 percent reduction in the additional surcharge has been recommended to help curb the ongoing brain drain, the minister said. BUDGET 2025-26 HIGHLIGHTS: GDP/DEFICIT * GDP growth projected to be 4.2 percent * Nominal GDP seen at 129.57 trillion rupees * Fiscal deficit expected to be 3.9 percent of GDP * Targets primary surplus of 2.4 percent of GDP INFLATION * Targets inflation at 7.5 percent EXPENDITURE * Total spending seen at 17.57 trillion rupees * Defense expenditure of 2.55 trillion rupees targeted * Interest payments projected at 8.21 trillion rupees REVENUE * Total gross revenue of 19.28 trillion rupees targeted * Targets total tax revenue of 14.1 trillion rupees * Aiming for net external receipts of 106 billion rupees ($1 = 282.0000 Pakistani rupees)
