AJK presents tax-free budget of Rs 15.78b

g Rs 4.60 billion allocated for development and Rs 11.18b for non-development expenditure

Staff Report

MUZAFFARABAD: The Azad Jammu and Kashmir government presented its tax-free budget of Rs 15.78 billion for the fiscal year 2004-2005 on Tuesday.

The AJK government allocated Rs 4.6 billion for development schemes and Rs 11.18 billion for non-development expenditure. Total state revenue has been set at Rs 9.25 billion out of which Rs 3.9 billion will be generated from the state’s resources.

Royalties from the Mangla Dam have been fixed at Rs 930 million, the revenue from the Jammu and Kashmir Council is set at Rs 1.88 billion, the share from federal taxes is set at Rs 2.53 billion while the government of Pakistan will provide an additional Rs 1.92 billion to balance the deficit. Finance Minister Raja Nisar Ahmed Khan presented the AJK finance bill for the year 2004-2005 and Speaker AJK Legislative Assembly Sardar Siab Khalid chaired the budget session.

Mr Nisar presented a Rs 14.88 billion reviewed index which includes Rs 3.83 billion for development and Rs 11.56 billion for non-development spending.

The finance minister said that development targets of the state government included communication for which Rs 1.25 billion was allocated, a 13 percent increase from Rs 254.2 million in the current fiscal year. He said that the total development was targeted at 28 percent.

The minister said that all highways linking the AJK with Pakistan and connecting the state’s districts would be expanded to accommodate two-way traffic. He said that 15 kilometres of road would be constructed in every AJK constituency. The minister said that Rs 300 million would be spent on the rehabilitation and improvement of roads along the Line of Control and AJK frontiers.

The finance minister said that the AJK Public Health Department would ensure clean drinking water for the residents of Bhimber and Neelabatt via Rawalkot. This project would cost Rs 1 billion and provide clean drinking water, sewerage and sanitation plans in other areas. Mr Nisar said that in addition to the preparation of a feasibility report for the development of water projects from the River Jhelum to Neelabatt, the provision of drinking water from River Poonch for Sehensah residents and from Pakhar reservoir to Rawlakot would also be made available.

Referring to the electricity department, the finance minister said that the AJK government would provide electricity to all residents of the state. A 17,152-km transmission line and 7,215 transformers would be installed to supply power to over 0.3 million consumers.

The minister said that the renovation of the State Assembly building, the renovation and expansion of the MLA Hostel and the construction of Block No 6 at the New Secretariat would be undertaken. He added that a proposal had been presented to the house office of the New Secretariat in Muzaffarabad for the construction of Block No 8.

The minister said that his government’s main focus was the development of human resources. He added that Rs 3.35 billion was being allocated to the education sector, which is 21 percent of the total budget. The minister said that the literacy rate in the AJK was higher than Pakistan’s at 60 percent because the current AJK government had paid extra attention to the education sector.

Over 100 primary schools in the state would be upgraded to the middle level and 60 middle schools to the high school level in the current fiscal year. The minister said that the AJK government had created over 382 vacancies in the education sector, which included 20 vacancies for lecturers at the Post Graduate College Muzaffarabad, degree colleges at Khrrik and Chakswari, Girls Degree College Afzalpur and Model Science College Muzaffarabad.

The finance minister said that during the current fiscal year, 100 primary schools were built at the cost of Rs 26.8 million, while Rs 96.6 million had been allocated for this purpose in the new fiscal year.

Mr Nisar said that the state government has also allocated Rs 978.4 million for the health sector. The estimates for District Headquarter Hospital at Sudhanhoti, Bhimber and Bagh are Rs 224.2 million. The minister said that Rs 30.5 million would be spent on these hospitals in the current fiscal year.

He said that a Rs 200 million scheme for the Civil Hospital at Rawlakot was already underway. He estimated the costs of tehsil headquarter hospitals at Samahni, Bhirah and Bagh at Rs 163 million, saying that Rs 46.6 million would be extended to these projects during the next fiscal year. The minister said Rs 986.8 million had been allocated for rural development and Rs 153 million for the protection and improvement of the AJK. Revenue from forests had been set at Rs 500 million and Rs 10 million had been allocated for social welfare. He said that proposals had been drafted to provide excellent facilities in Muzaffarabad. The district headquarters would also be provided special schemes.

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