The Khyber Pakhtunkhwa (KP) Government announced a comprehensive Annual Development Program (ADP) of Rs120 billion for the fiscal year 2024-25, as part of a broader development expenditure of Rs416.30 billion. This budget reflects a significant commitment to various sectors, including education, health, infrastructure, and social welfare, with a notable focus on enhancing employment, irrigation, and transportation.
A significant allocation of Rs12 billion has been earmarked for the Ehsas Employment Program, Youth Program, and Skills Program, aiming to create 100,000 jobs. This initiative is crucial for addressing unemployment and boosting economic activity in the province. Additionally, the budget allocates Rs3 billion for constructing 5,000 houses under the Ehsas Own House Program, which will help alleviate housing shortages and improve living standards.
The budget also highlights substantial investments in infrastructure projects, such as Rs10 billion for the CRBC Lift Canal, which aims to irrigate 300,000 acres of land, and significant allocations for road construction and dams. These projects are expected to enhance agricultural productivity and improve connectivity, which are essential for regional development.
Education receives a substantial boost, with Rs362.68 billion allocated for the sector, reflecting a 13% increase from the previous year. This includes funds for establishing 30 degree colleges and over 350 schools in rented buildings, which will help address the educational needs of a growing population. Similarly, the health sector sees a 13% increase in funding, with Rs232.08 billion allocated. This includes the introduction of an air ambulance service and the establishment of a satellite center for the Peshawar Institute of Cardiology in the southern districts, which will enhance healthcare accessibility and quality.
The law and order sector is allocated Rs140.62 billion, a 12% increase, indicating a commitment to improving security and public safety. The budget also includes significant allocations for social welfare, tourism, agriculture, energy, livestock, and forestry, each aimed at fostering holistic development across the province.
Notably, the budget features measures to support government employees and pensioners, with a 10% increase in basic pay and pensions, and an increase in the minimum wage from Rs32,000 to Rs36,000. These measures are likely to improve the living standards of public servants and stimulate economic activity.
However, despite the ambitious development plans, the budget reveals some critical challenges. The province faces a significant annual deficit of Rs139 billion, and there are substantial outstanding amounts under various heads, including Rs1800 billion under the AGN Qazi formula and Rs46.82 billion under oil and gas. This highlights the need for effective revenue mobilization and financial management to sustain the development momentum.
The KP Government’s plan to enhance tax revenue, targeting Rs93.50 billion, is a step in the right direction. However, achieving this target will require robust strategies and efficient implementation to expand the tax base and improve collection mechanisms.
In summary, the KP Budget 2024-25 demonstrates a strong commitment to development across various sectors, with substantial allocations aimed at addressing key challenges and fostering economic growth. However, the province must address its fiscal deficits and enhance revenue mobilization to ensure the sustainability of its development agenda. The budget reflects an ambitious yet realistic approach to regional development, prioritizing ongoing projects and essential services, which is crucial for the province’s long-term growth and stability.
