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INTRODUCTION

Year 2010-11 was a mix bag for Khyber Pakhtunkhwa. On the Receipt side the Provincial

share was boosted by increased share from the fall out of the 7th

NFC Award and arrear

payment from Net Hydel Profit. However, Mother Nature has other designs. The

devastating floods of July-August 2010 changed the whole game plane for the Province.

Another important event that took place in year 2010-11 was Devolution of 18

Federal Ministries to the Provinces in wake of the 18th

Amendment.

The floods submerged and inundated vast areas of Khyber Pakhtunkhwa and destroyed

properties, livelihood and infra structure. To mitigate for the relief and rehabilitation of

the flood affected areas, the provincial government was compelled to make

adjustments in its budget. The Annual Development Plan portfolio for the new projects

was frozen and funds were diverted towards floods compensation and infrastructure

development.

During the year 2010-11, capacity building of Police remained a focused and prioritized

area due to prevalent law and order situation. Salaries of the police personnel were

increased and the scope of Shuhada package was enlarged. Additional grants were

provided to social sectors like health and education during the year. Although the

province did faced financial crunch, yet pro- poor initiatives and core areas of

development were not hampered. Strict economy measures were adopted by the

government to slash non-developmental expenditure.

For Fiscal Year 2011-12, budgetary allocations reflect heightened priority to income

generating sectors of economy i.e. Hydel Generation, Oil and Gas Exploration, Tourism

and Mineral Development, Agriculture and Water. The development of growth sectors is

complemented with sizeable commitment of resources to Social Services in Education,

Health, and Population Welfare.

To support Government policies, fiscal resources available from provincial receipts

continue registering a rising trend. Provincial Revenue Receipts projections for the year

2011-12 record an increase of 8.3 percent over the previous fiscal year 2010-11, from

Rs. 8737.589 million in 2010-11 to Rs. 9464.095 in the fiscal year 2011-12. Budgetestimates for Capital Receipts of the Province for Fiscal Year 2011-12 marked a decline

from Rs. 3250.00 million to Rs. 250 million. However, the decline directly corresponds to

an amount of Rs. 3000 million from SBP given for recapitalization of Bank of Khyber in

2010-11.

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Among all components of Current expenditure on Capital Account which is estimated at

Rs. 15,010.000 million for 2011-12, recording an increase of 36% percent over previous

year, expenditure on Pro-Poor Welfare schemes depicts maximum increase; from Rs.

2000 million (revised estimates) during 2010-11 to Rs. 4500.000 million in 2011-12. The

increase is accounted for by different pro-poor initiatives i.e. Pakhtunkhwa Hunermand

Rozgar Scheme; Public Private Partnership Scheme; Stori Da Pakhtunkhwa Scheme; B.Sc

& M.Sc Nursing Scheme; Morusi Hunermand Scheme; Bacha Khan Khpal Rozgar Scheme;

Provincial Youth Technical Support; Establishment of Call Centres and implementation

of Benazir Health Support Programme in 2011-12 for which an endowment fund of Rs.

203.100 million was established in 2010-11.

During 2011-12, ratio of Current to Development allocations at 64 to 36 percent will be

maintained by Provincial Government. Allocations recorded an increase of 16 percent in

2011-12 over the previous year with the predominant increase in salary budget (13

percent), Pensions (45 percent) and O&M (15 percent). Wage bill on account of Pay andPensions dominate 68 percent. Budgetary allocations to Social sectors (E&SE, Health and

Population Welfare) in 2011-12 mark an increase of 41% percent over the previous year,

from budgetary allocations of Rs. 9444.293 million (E&SE, Health and Population

Welfare) during 2010-11 to Rs. 13293.033 million in 2011-12.

In order to make budget more participative and transparent, Finance Department

arranged a series of pre budget consultative workshops for the elected representatives,

members of the civil society, professionals and academia in order to ascertain their

constructive input in setting out the budget priorities. The first consultative workshop

was titled Pre-Budget Jirga and was hosted by the Finance Minister, Khyber

Pakhtunkhwa. All members of the provincial assembly were invited. This Pre Budget

Jirga was attended by the members of cabinet, elected representatives and

administrative secretaries of departments. The second consultative workshop was held

for the members of civil society, media, intelligentsia and other representatives of

elected bodies. It is heartening to state that majority of the recommendations,

suggestions and ideas from these workshops are being incorporated in the budget for

the Year 2011-12.

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Chapter 1: Current Revenue ExpenditureChapter 1: Current Revenue ExpenditureChapter 1: Current Revenue ExpenditureChapter 1: Current Revenue Expenditure PagePagePagePage 1111

CURRENT REVENUE EXPENDITURE

There are two types of budget, current (operational budget) and development (adding to

the infrastructure). It is generally conceived that revenue expenditures are non productive.

However if synthesized rationally both current and developmental expenditures are relative

terms and complement one another. Assets created out of developmental investment

require operational maintenance, the same need staff and machinery to run and operate.

Maintenance of law and order is necessitated to encourage developmental investments.

Current expenditures are needed for logistic support of the developmental projects. The

current budget has the following major heads of expenditure (Grant Wise General Abstract

of Current Budget 2011-12, given in the Annexure-XI):-

i. Salaryii. Operational budget or O&Miii. Pensioniv. Subsidiesv. Debt servicingvi. Funding of deferred liabilities/public account

The salary budget of the province is increasing at an alarming rate. The following table

depicts the increase in posts and salary budget during the last 3 years:-

(Rs. in millions)

ItemBE

2009-10%

IncreaseBE

2010-11%

IncreaseBE

2011-12%

Increase

Current Budget 80,000.000 19 127,958.000 60 149,000.000 16

Posts 344,139 4 375,935 9 377,132 0.32Salary budget 48,159.576 19 76,000.000 58 86,000.000 13

O&M 12,560.303 12 22,897.396 82 26,403.192 15

Pension 7,172.089 24 11,000.000 53 16,000.000 45

Debt servicing 8,108.032 23 9,660.604 19 10,596.808 10

Subsidy 2,000.000 - 2,500.000 25 2,500.000 -

Committed

contributions/Govt. Investment

2,000.000 48 5,900.000 195 7,500.000 27

The province intends to maintain the Current Expenditure at the existing level of 64% of

total expenditure for the Fiscal Year 2011-12 and the Development Expenditure at 36% of

the total expenditure. It is pertinent to mention here that 68% of the current budget goes to

the wage bill (Pay & Pension) which is continuously increasing mainly due to the creation of

new posts for the new infrastructure and intensified rate of retirement. 7% of the current

budget has been allocated for debt servicing, 2% for wheat subsidy, 5% for district non-

salary and 18% for others.

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The operational budget for maintaining the existing service delivery network (like provision

for medicines, classroom consumables, repairs, agriculture inputs, utilities etc) is declining

in real terms. The pension liability is also on the rise, which will increase with the intensity

of retirement. Debt servicing is another liability which has been somewhat contained by

premature retirement of expensive (high mark up) debts. Funding of the deferred liabilities

on account of Pension and GP fund is another major expenditure, which is piling up. Theinvestment on account of GPF and Pension fund have reached Rs. 14,215.709 and Rs.

9,096.283 million respectively as on 30th

June 2011, which is however far less than the

actual liability that has accrued against the provincial government.

For the financial year 2011-12, the Current Revenue Expenditure has been estimated as Rs.

149,000.000 million, against Rs. 127,958.000 million in 2010-11, showing an increase of

16%. Brief analysis of the Current Budget is as follows:-

(Rs. in Millions)

S.No DescriptionBudget

Estimate

2010-11

RevisedEstimate

2010-11

BudgetEstimate

2011-12

Salary: 76,000.000 74,697.999 86,000.000

a) Provincial 33,743.090 29,697.999 35,174.7221

b) Districts 42,256.910 45,000.000 50,825.278

Non Salary: 20,897.396 33,047.242 24,453.192

a) Provincial 11,294.946 23,293.051 14,135.6682

b) Districts 9,602.450 9,754.173 10,317.524

Repair & Maintenance: 2,000.000 2,100.000 1,950.000

Road, Highway & Bridges

(Repair)1,500.000 1,500.000 1,400.000

3

Buildings & Structure (Repair) 500.000 600.000 550.000

4 Pension 11,000.000 12,000.000 16,000.000

5 Wheat Subsidy 2,500.000 2,500.000 2,500.000

6Government Investment /

committed contribution5,900.000 5,900.000 7,500.000

7 Debt Servicing 9,660.604 9,254.759 10,596.808

Total 127,958.000 139,500.000 149,000.000

The Pay Bill of the Provincial Government is increasing at an unpredicted rate. The strength

has risen from 300,849 to 377,132 posts over 6 years; between the fiscal year 2006-07 and

2011-12, which can be seen at the following table.

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STAFF STRENGTH OF KHYBER PAKHTUNKHWA EMPLOYEES FROM 2006-07 TO 2011-12

Year Provincial District Total

2006-07 81,651 219,198 300,849

2007-08 95,209 226,783 321,992

2008-09 105,384 224,328 329,712

2009-10 118,213 225,926 344,139

2010-11 144,716 231,219 375,935

2011-12 140,006 237,126 377,132

It is pertinent to mention here that increase in creation of posts at such rate leave little

room for the Provincial exchequer to set aside funds for developmental sector.

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ChapterChapterChapterChapter 2222:::: SectoralSectoralSectoralSectoral ExpenditureExpenditureExpenditureExpenditure PagePagePagePage 4444

SECTORAL EXPENDITURE

The Government is actively working on Financial Reforms Agenda, which includes

Performance Based Budgeting, maintaining continued flow of policies, introduction of Third

Party Audit and Medium Term Budgetary Framework. The reason behind these initiatives is

to make the Current and Developmental Expenditure more Realistic, Pragmatic,

Accountable and for better service delivery to the general masses. The pro poor policies of

the Government are reflected in the expenditure committed in various sectors during the

year 2010-11.

ELEMENTARY AND SECONDARY EDUCATION

Financial autonomy has been granted to Parent-Teacher-Councils (PTCs). The school funds

are directly transferred to the bank accounts of the PTCs for utilization on need basis. Third

Party audit has been introduced for the first time to ensure transparency and

accountability.

SANCTIONED STRENGTH OF ELEMENTARY & SECONDARY EDUCATION DEPARTMENT

Year Provincial District Total

2011-12 1,034 176,879 177,913

Against the Revised Estimates of Rs. 410.503 million for 2010-11 of the Elementary &

Secondary Education Department (Provincial Budget), an amount of Rs. 545.203 million has

been allocated in the Budget Estimates 2011-12, showing an increase of 32.81%. Figures fordistrict level education for the financial year 2011-12 have been projected proportionately

on the basis of previous trend (as district budget has not yet been prepared). The projected

budget for district level Elementary and Secondary Education sector for the financial year

2011-12 is Rs. 38,820.930 million.

(Rs. in Millions)

FINANCIAL YEAR REVISED %

2003-04 11,423.444 13.21

2004-05 13,134.273 14.98

2005-06 15,614.621 18.89

2006-07 17,606.510 12.76

2007-08 19,710.142 11.95

2008-09 22,173.910 12.50

2009-10 25,278.257 14.00

2010-11 36,770.205 45.46

2011-12 (BE) 38,820.930

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Since 2007-08, total number of schools has increased from 26,247 to 27,419. Similarly

enrolment has increased from 3.534 million to 3.597 million students. The table given

below elaborates the position:-

No. of Schools EnrolmentSchool

Type 2007-08 2008-09 2009-10 2007-08 2008-09 2009-10Primary 22,730 22,881 22,889 2,758,656 2,881,962 2,654,285

Middle 2,527 2,617 2,547 206,792 205,349 207,721

High 1,618 1,692 1,697 544,076 535,118 538,874

Higher 272 281 286 192,752 194,782 196,000

Total 27,147 27,471 27,419 3,702,276 3,817,211 3,596,880

(Source: EMIS Report E&SE Department)

In 2010-11, the position of Establishment of Govt. Primary Schools (M&F) and up gradation

of Govt. Primary Schools (M&F) to Middle/ Govt. Middle Schools (M&F)to High and High

schools to higher secondary status is given below:-

S.No SchoolsNumber of

Schools/CollegesPosts

Created

i. Govt. Primary Schools (M&F) 234 699

ii.Up Gradation of Primary schools (M&F)

to Middle Status.117 936

iiiCreation of posts for Establishment of

the Office of Executive District Officer

(E&SE) District Tor Ghar.-- 11

iv. Establishment of High Schools. 1 15

VUp gradation of Govt. Middle Schools

(M&F) to High status.

79 553

vi.Up gradation of Govt. High Schools to

Higher Secondary level.3 45

viiStarting of Science Classes in Higher

Secondary Schools.-- 06

viii Establishment of Cluster Hostel. 1 04

Total 2269

For the financial year 2011-12, plan for Establishment /up gradation of schools and creation

of posts is given below:-

S.No SchoolsNumber of

Schools/collegesPosts

Created

i. Govt. Primary Schools (M&F). 34 102

ii.Up Gradation of Govt. Primary schools

(M&F) to Middle Status.15 120

iii. Govt. High Schools. 10 70

iv. Govt Higher Secondary Schools 01 17

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HIGHER EDUCATION

Higher education has scaled new achievements during the year 2010-11. A number of new

colleges were established, especially for the female and charters granted to sixteen

universities. The establishment of Higher Education Regulatory Authority (HERA) has

created a positive impact on the regulatory avenues for higher education in the private

sector. Liberal grants are being provided to cadet colleges and public schools. Sizeable

allocation has also been made for science laboratories and libraries.

There are 154 colleges, 100 male and 54 female, in the Province with gross enrolment of

109,952 (73,452 male and 36,500 female). Staff strength of colleges is 8,556, out of which

4,621 are teaching and 3,935 are non-teaching. Per student expenditure is Rs. 26,098 per

annum (male Rs. 28,034 and female Rs. 22,202). Over all teachers student ratio is 1:24.

Detail of Budget earmarked for Higher Education, Archives & Libraries (Provincial) for the

financial year 2011-12 is as under:-

(Rs. in Millions)

Budget Estimates 2011-12S.No Function

BudgetEstimates2010-11

SalaryNon

SalaryTotal

1. Secretariat 66.694 128.883 16.437 145.320

2. General Colleges 2869.548 3888.911 651.288 4540.199

3 Archives & Libraries 41.856 47.209 7.163 54.372

Total 2978.098 4065.003 674.888 4739.891

Existing colleges are being upgraded to postgraduate level where required. The following

table depicts the position of posts created during 2010-11 and fresh posts proposed for

creation during 2011-12.

A- POSTS CREATED DURING THE COURSE OF 2010-11

S.No Development ActivityNumber of

CollegesPosts

Created

i. Establishment of Degree Colleges 5 189

ii. Starting of Postgraduate Classes 1 09

iii Creation of staff for student Hostel 1 04

v. Additional posts for existing High School. -- 01

vi. Establishment of Cluster Hostel 01 04

vii.

Creation of additional posts Director

Physical Education (BPS-17) in Govt.

Regional Institutes for Teachers Education

(Male/Female) in Khyber Pakhtunkhwa.

-- 20

Total 334

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iv. Creation of Posts of Drivers in Colleges. 12 12

v. Creation of Additional Posts in Colleges -- 16

Total 230

B- FRESH POSTS CREATED FOR 2011-12

i.Creation of posts in Higher Education

Department.

-- 13

ii. Additional Posts for Existing Colleges -- 34

iii.Creation of Posts in Directorate of Higher

Education-- 03

iv Establishment of Colleges 1 39

vCreation of Posts for Public Library D.I Khan

and Swat2 8

Total 97

HEALTH

Health Department is mandated by the Government to ensure provision of quality healthservices to the people in Khyber Pakhtunkhwa at an affordable cost. The Department has

employed 4316 doctors, 11363 Para medics and 3554 nurses to provide health services to

the population of the province. Moreover the province has taken lead in Creation of Health

Management Cadre.

Allocation in the Budget of 2011-12 for Health Department has been increased from Rs

5,940.685 million to Rs 7,837.251 million, which shows an increase of 31.92%. Budget of

Health Department also includes regular Grants in Aid to various Autonomous Health

Institutions. Detail of these grants provided during the Year 2010-11 and 2011-12 are as

follows:-(Rs. In million)

S.No InstitutionB.E.

2010-11B.E.

2011-12%

Increase

1 Lady Reading Hospital, Peshawar. 960.652 1152.949 20%

2 Khyber Teaching Hospital, Peshawar 664.453 797.353 20%

3 Khyber Medical College, Peshawar. 272.510 313.982 15%

4 Khyber College of Dentistry Peshawar 92.257 146.889 59%

5 Hayatabad Medical Complex. 431.375 543.096 25%

6 Post Graduate Medical Institute 398.620 606.040 52%

7 Ayub Teaching Hospital, Abbottabad. 428.708 504.059 17%

8 Ayub Medical College, Abbottabad. 347.569 362.082 4%9 Institute of Kidney Diseases Pesh. 115.148 137.596 19%

10 Pakistan Institute of CommunityOphthalmology Hayatabad Medical

Complex Peshawar.- 14.606 -

11 Khyber Girls Medical College Pesh. 151.864 182.523 20%

Total 3863.156 4761.175 23%

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Grant-in-Aid have also been proposed for the following purposes in the Budget Estimates

2011-12:-

(Rs. In million)

S.No Institution/Purpose 2010-11 2011-12

1 Endowment Fund. 100.000 100.000

2 Provision of Emergency Drugs for poor wounded patients. 100.000 100.000

3Creation of posts in the projects/schemes due for

completion during the year.100.000 200.000

4 Cardiology Unit, Lady Reading Hospital, Peshawar. 40.000 40.000

5 Cardiovascular Unit, Lady Reading Hospital, Peshawar. 20.000 20.000

6 Fatimid Foundation 2.000 2.000

7 Paraplegic Centre Hayatabad Peshawar. 20.000 20.000

8 Health Regulatory Authority. 20.000 20.000

9 Frontier Foundation Peshawar. - 15.000

There is a well distributed infrastructure in all 25 districts of the Province. Primary Care

Health services are provided through 86 RHC, 784 BHUs and more than 573 other Primary

Health Centres. The Secondary Health care is provided through 103 hospitals besides which

there are 8 teaching/ tertiary hospitals in the province. The total number of hospital beds in

the province is 8974. In the current financial year a total number of 9,801,542 consultations

were provided while 464,250 patients were admitted in these hospitals for indoor services.

Department has also allocated a substantial amount of budget to standardization and up

gradation of Health facilities and 17 hospitals (including DHQ, THQ, Category-D, Category-C

and Civil Hospitals) were completed during FY 2010-11.

The Provincial Government allocated 50 Kanal land free of cost for establishment of the

Shoukat Khanum Memorial Cancer Hospital Peshawar. The land has already been

transferred to Shoukat Khanum Memorial Trust and a sum of Rs. 7.000 million has also been

sanctioned as Grant-in-Aid.

The Health Department is focusing on achieving the Health related targets set in MDG4, 5

and 6. For that purpose Health Sector Strategy has been approved. Several programmes

that include: National Programme for FP & PHC and MNCH Program, TB control, HIV/ AIDS

control, Roll back Malaria and Hepatitis Control have been working in the province.

During 2010-2011 the Department has been facing a more challenging and complexsituation due to the existing law and order. The Health Department has to respond to

manmade or natural disaster on one hand while at the same time it had a major challenge

of keeping its routine services in place, in these affected districts. The situation is further

aggravated by the population which was badly affected by the floods and heavy rains in

which the Health Department had to respond to health needs of more than 3.5 million

population residing in camps and in hosted population and at the same time take necessary

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measures to prevent epidemics. One of the indicators for success of Health department is

that no epidemic was reported throughout the crisis. Department has successfully restored

the services in Flood affected district despite damaged Health facilities. The process of

reconstruction of damaged health facilities has started.

The following achievements were made in addition to the above mentioned by theDepartment in the current year. Under the EPI Program, Routine Immunization Coverage

was as under:

Name of Vaccine Achievement

BCG 90%

OPV 87%

Pentavalent 87%

Measles 75%

TT 69%

Under Benazir Health Support Program an amount of Rs. 500.00 million was provided for

the treatment of Hepatitis C patients in Khyber Pakhtunkhwa out of which Rs. 130.00

Million has been utilized on the purchase of medicines/vaccines for treatment of 14000

Hepatitis B & C patients. Free treatment of 231329 TB patients all over the province was

provided and 100% DOTS coverage in all 24 Districts was achieved.

LHW Programme performance has been ranked number one in the whole country by third

party evaluation carried out by Oxford Policy Management. 1200 New Lady Health Workers,

150 new Lady Health Supervisors and 100 drivers were recruited in the financial year 2010-

11. Stipend of LHWs was increased from Rs. 3100 to Rs. 7000 in the province as per thedecision of the Supreme Court. Rs. 20.000 Million were given to the LHWs who were

affected by the flood as additional support in the form of tents, medicines, chairs and beds.

Implementation of Roll Back Malaria strategy is ensured in all 24 districts of Khyber

Pakhtunkhwa. Insecticides/Parricide were procured for 24 districts at a total cost of Rs. 7.5

Million. Anti Malarial Medicines costing Rs. 2.000 Million were also provided to 24 districts.

5 Fog generation machines for spraying were supplied to the flood affected districts at a

cost of Rs. 0.6 Million.

DHIS is being extended to 24 districts of the Province. Health staff of 24 districts has been

trained on DHIS Tools/Instruments. To strengthen and improve the capacity of the HealthHuman Resource Rs. 33.8941 million were allocated in the current year. 22 Doctors (From

Grade 19 to 20), 25 Doctors (From Grade 18 to 19) and 28 Doctors (From Grade 17 to 18)

have been trained to be promoted accordingly.

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A project worth Rs. 100 Million was also approved and implemented to strengthen the Drug

Control Administration. This project will help in improving the efficiency of Drug Inspectors

of Health Department to ensure the proper quality of drugs sold to the community.

POPULATION WELFARE DEPARTMENT

Till 2010-11, the Provincial Government used to allocate budget for the Secretariat of

Population Welfare Department. To cope with the additional burden due to transfer of

activities from Federal to Provincial Government in the light of 18th

Amendment, One post

of Additional Secretary (BS-19) along with support staff has been created in the Population

Welfare Department during CFY 2010-11.

Furthermore, 2979 posts of different categories, which were earlier funded by Federal

Government, are also proposed to be created through SNE (Fresh) 2011-12 in Population

Welfare Department. These posts include 192 posts on Provincial Side and 2787 at Districts

level.

Provincial Governments budget allocation for 2010-11 and 2011-12 is as follows:-(Rs. In million)

Budget Estimates2010-11

Revised Estimates2010-11

Budget Estimates2011-12

12.056 12.694 170.688

POLICE

In wake of the prevailing law and order situation in the province, the expenditure on Police

has been substantial during the year 2010-11. The total sanctioned strength of police stands

at 69,912. For the Financial Year 2011-12 a sum of Rs. 18,810.003 million has been

earmarked. Sizeable amount has been spent on improvement of mobility, communication,

arms and ammunition during 2010-11.

DETAILS OF TERRORIST ACTIVITIES (EXPLOSIONS, MISSILE ATTACKS, FIRING, SUICIDAL ATTACKS AND

BLAST AT CDS/BARBAR SHOPS ETC)

PERSON KILLED PERSON INJURED

YEARS

NO OF

CASESREGISTERED Police FC Army CIVIL: TOTAL Police FC Army CIVIL: TOTAL

2003 0 0 0 0 0 0 0 0 0 0 0

2004 27 6 1 2 4 13 3 3 7 58 71

2005 1 0 0 0 0 0 0 0 0 0 0

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2006 38 9 6 4 54 73 8 3 12 122 145

2007 359 62 32 62 253 409 172 89 162 592 1015

2008 524 117 25 52 408 602 256 86 88 885 1315

2009 727 149 22 107 742 1020 360 70 236 2244 2910

2010 252 63 12 37 412 524 197 18 105 1047 1367

upto

03.05.2011100 35 22 33 159 249 75 18 70 369 532

TOTAL 2028 441 120 297 2032 2890 1071 287 680 5317 7355

CAPACITY BUILDING OF THE POLICE

Automatic weapons holding increase from 20% to 75 %. RPGs, HMGs, GTLs also provided

with imparting of anti terrorist training to Police Department. Crash programme of 5 weeks

ATS Training for the whole force, Technical assistance by USA, France and U.K with Project

Coordination Unit set up in the Central Police Office (CPO). Bullet-proof Jackets has also

been Increased from 2000 to 22832 (1042%).

MORALE BOOSTING MEASURES

The Chief Minister has announced Gallantry Awards with increase in pay & allowances.

Revamping of welfare activities like Life & Health Insurance Policy and 20 % quota in

recruitment of Constables for sons of serving Police personnel has been also reserved.Special TA/DA for Police Personnel in affected areas has also been introduced. Police

personnel who have suffered physical / psychological trauma in fight against militancy are

being sent for Umra.

SHUHADA PACKAGE

The Provincial Government has been pleased to approve a comprehensive compensation

package for the families of Shuhada martyred due to act of terrorism. Detail as follows:-

a)

Cash Compensation. (From Rs. 3.000 to Rs. 10.000 million)b) Cash Payment in Lieu of Plot of Land (From Rs. 1.000 to Rs. 5.000 million)c) Payment of Full Pay & Allowances.d) Full Pensionary Benefits.e) Education/Scholarship for Shuhadas Children.f) Free Medical Facilitiesg) Accommodation & Employment

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ENVIRONMENT/FORESTS

The Forestry resources of the province comprising lands supporting natural forests, shrubs

and grazing lands are not only vast in extent but also rich in diversity and variety. Theserenewable resources of the province are being managed by the Khyber Pakhtunkhwa Forest

Department for the benefits of the local communities, Provincial Government, national

economy and the International community at large. Besides meeting the essential

subsistence needs of the local communities and conserving soil and water, forests provide

protective, regulative and environmental services to the people of the Khyber Pakhtunkhwa

and Pakistan. Especially important are their contribution to protecting our watersheds,

regulating a perennial supply of water for hydro-power generation and agricultural crops

and meeting the needs regarding constructional timber, fuel wood, Industrial wood, Fodder

and Ecotourism. Internationally they are important for conserving biodiversity and acting as

carbon sinks thereby contributing towards ameliorating global warming.

BUDGETARY PROVISION IN FORESTRY SECTOR FOR 2011-12

The total forest area of Pakistan is about 4.8%. Khyber Pakhtunkhwa is rich in forestry

resources as compared to the rest of three provinces. The Forest cover of Khyber

Pakhtunkhwa is 17.4% and the forest of this province account for about 40% of the total

forest area of the country. In addition to 17.4% of forest area, 48% rangelands of the

province also fall under the management of Khyber Pakhtunkhwa Forest Department. The

Forest and Rangelands of the province are an important source of livelihood for the local

communities besides generating revenue for the state and providing watershed, ecological,

recreational and ecotourism related services for the nation.

PLANS, TARGETS AND ACHIEVEMENTS DURING 2010-11

S.No ACTIVITY TARGET ACHIEVEMENT

A.Forestry

1. Raising of Nurseries (Acre) 31.20 30.20

2. Block Plantation (Acre) 9240 6420

3. Direct Sowing(Acre) 1022 785

4. Linear Plantation (A.V.Km) 1134 1083

5. Demarcation (Acre) 121936 11949

6. Seedling Distribution (Nos) 0.150 0.1107. Construction of Boundary Pillars (Nos) 8090 1798

8. Soil Conservation (Acre) 500 313

9. Check Damming Cft 33125 33125

10. Range Management (Acre) 500 485

B. NTFP/Sericulture

1. Purchase of Honey bee colonies 175 127

2. Training of Farmers in the art of apiculture 175 175

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3. Purchase silk seed 50 50

4. Establishment of Mazri Nursery (Acre) 01 01

5. Kana Plantation(Acre) 40 40

6.Training of farmers in raising and propagation of

medicinal plants(No)100 100

7. Training of farmers in mushroom cultivation (No) 100 50

BUDGETARY PROVISION AND PROPOSED TARGETS FOR 2011-12

The Forest Department of the province under the forestry sector has proposed an allocation

ofRs.401.796 million under provincial ADP to achieve the following physical targets.

S.No ACTIVITYPROPOSEDTARGETS

A. Forestry

1. Raising of Nurseries(Acre) 50

2. Block Plantation (Acre) 8600

3. Direct Sowing(Acre) 550

4. Linear Plantation (A.V.Km) 500

5. Demarcation (Acre) 54900

6. Seedling Distribution (Nos) 0.150

7. Construction of Boundary Pillars (Nos) 9596

8. Soil Conservation (Acre) 2000

9. Check Damming Cft 40000

10. Range Management (Acre) 800

B. NTFP/Sericulture

1. Purchase of Honey bee colonies 1752. Training of Farmers in the art of apiculture 175

3. Purchase silk seed 75

4. Establishment of Mazri nursery (Acre) 01

5. Kana Plantation(Acre) 300

6 Training of farmers in raising and propagation of

medicinal plants (No)100

7 Training of farmers in mushroom cultivation 100

8 Cultivation of Bamboo (Acre) 20

AGRICULTURE

Khyber Pakhtunkhwa has an agrarian economy and more than 80% of the rural population

depends for their survival on Agriculture, out of which 70% are directly or indirectly

engaged in Agriculture. Agriculture can easily attain the status of big industry in the

province if proper care and patronage is given to it. The province is short in food

commodities, hardly producing 40% of local requirements and meets the balance

requirements on import from Punjab etc. Therefore, the primary concern is food on which

the rise and fall of the nations depends. Provincial agriculture department, therefore,

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attaches high priority to this aspect and is availing every conceivable avenue that promotes

the growth of agriculture.

ACHIEVEMENTS FOR THE YEAR 2010-11:

350 acres Date orchards planted

1425 acres fruit orchards of different species were planted

662 acres demonstration plots of wheat, maize and vegetables were laid out

332 tons gram Seed were Procured

1771 acres wheat and maize were sown on Govt Farm for certified seed production

2808 acres of land levelled through lasers technology

966 watercourses were improved

A total of 137 soil conservation structures developed.

100 dug-well installed

190 hectares land levelled through tractors/bulldozers

Sprinkler/drip Irrigation System were installed on 5100 acres of land

22 number of water storage tanks were constructed

100 watercourse were rehabilitated

400 tones maize hybrid seed was produced

15 acres model olive orchards were laid out

PROPOSED LANDMARKS FOR THE YEAR 2011-12:

Although the department has under-taken a number of special/ new initiatives in the last

four years under the ADP/PSDP programs for accelerating agriculture development, the one

new and most significant initiative under the present regime included in ADP-2011-2012, is

procurement of 40 bulldozers and three power winches for land reclamation andinstallation of Dug-well respectively. Projects for Livelihood back yard development for food

security, Value addition of fruits and vegetables, Rehabilitation of flood disaster land with

plantation of new orchards, Poverty alleviation through improved rural poultry production

and conservation of native livestock breeds of Khyber Pakhtunkhwa. An allocation of Rs.

1382.662 million has been made for 102 projects out of which 60 Nos are ongoing and 42

are new. The following major targets will be achieved in this sector:

Establishment of 560 acres fruit orchards

laying out of 640 demonstration Plots regular season vegetables

laying out of 500 D-Plots of Off-season season vegetables

56000 Nos fruit plant will be distributed

laying out of 378 Nos wheat demonstration plots

laying out of 213 Nos maize demonstration plots

6500 M. tones procurement of certified wheat seed

480 M. tones procurement of maize seed

145 soil conservation structures will be developed

Installation of 200 Dug-wells

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IRRIGATION

Pakistans economy depends largely on agriculture which contributes 24% of the gross

domestic product (GDP), generates 44.1% employment while 70% of active population is

dependent on agriculture. Apart from food production, agriculture provides raw materials

for agro based industry.. Due to lack of industrial development in the province, theimportance of agriculture is crucial which mainly depends on a smooth and effective

Irrigation system. Pakistan is already one of the most water-stressed countries of the world,

a situation which is going to degrade into outright water scarcity due to large and expanding

population and resultant needs of food and fiber. Its annual wheat requirement is about 3.2

million tons of which its domestics production is hardly about 1 million tons. It thus faces a

food deficit of nearly 2.2 million tons of wheat per annum which is met from PASSCO/TCP

and open market purchases from Punjab. To cater to these problems, investment in water

sector projects is mandatory. Freeze was placed on ADP which gave a little set back to the

development activities. The following targets have been achieved in the water sector during

the financial year 2010-11.

The work on Gomal Zam Dam located at South Waziristan Agency has been

accelerated and 90 % work on the main dam has been completed. However, the

work progress on irrigation component is only 24.5 %. The dam upon completion

would irrigate an area of about 163000 acres besides power generation of 17.4 MW.

The Bazai Irrigation scheme is located in District Mardan and Malakand Agency. An

area of about 25200 acres would be brought under irrigation upon the completion of

the project. The survey, investigation & Detail Design of the project has been

completed. Physical progress on the project is 20%.

An amount of Rs. 2417.248 million had been allocated for 42 Nos. ongoing and 21

Nos. new schemes in ADP 2010-11. Out of these, 10 Nos. schemes have been

completed.

Through installation of 20 Nos. augmentation tube wells and rehabilitation of 20

Nos. irrigation tube wells 8000 acres of existing irrigated land has been improved.

In order to increase the life span of our small dams and to protect them from

siltation a feasibility study regarding water shed management has been completed.

The Irrigation department also carry out and maintains flood protection works

throughout the province. The Khyber Pakhtunkhwa province being the upper

riparian of the Indus basin is always the first victim of the floods and due to its

peculiar geography it experiences flash floods.

The flood of July, 2010 brought havoc in the province. To address theaforementioned flood, the Flood Damages Restoration Directorate has been

established.

Consequent upon the flood damages, a Damage Need Assessment (DNA) report has

been framed. Based on the DNA report the department has approved 57 Nos. PC-Is

uptil now from the provincial PDWP. Out of these 20 Nos. schemes for flood

protection works have been completed.

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After the flood of July, 2010 the water supplies were restored in the Govt. canals

system within a short period of 6 weeks.

The emergent restoration of Tangi Lift Irrigation Scheme District Charsadda has been

carried out after the flood.

The department has prepared and submitted a Comprehensive Flood Protection Plan

costing Rs. 45.80 billion to the Federal Govt. for financing. Barganatu Dam in district Bannu has been completed which would bring a new area

of 1200 acres under irrigation.

The following targets would be achieved in the next financial year 2011-12.

The Balambat Irrigation Scheme in district Dir Lower would be completed which

would irrigate an area of about 11363 acres.

96 Nos. Irrigation tube wells and 11 Nos. lift irrigation schemes would be installed

which would bring an areas of 12850 acres under irrigation.

The Khandan Jonali Koch Irrigation Scheme in district Chitral would be completedwhich would irrigate an area of about 1200 acres.

06 Nos. Small dams (Darmalak Dam Kohat, Lawaghar and Karak Dam, Karak, Khair

Bara Dam, Haripur, Jabba Khattak Dam, Nowshera and Palai Dam Charsadda) will be

completed in the next financial year subject to the availability of funds which would

bring a new area of 12310 acres under irrigation.

The Palai dam in district Charsadda will be completed in the next financial subject to

the availability of funds. Physical progress on the dam is 65 %. The dam upon

completion would a bring a new area of 4600 acres under irrigation.

Detail design of 6 Nos. small dams will be completed in the next financial.

Feasibility study of 38 Nos. small dams will be completed in the next financial year. To protect our canals and river system from pollution two feasibility studies one for

Peshawar valley and other for Swat river will be completed.

An amount of Rs. 6473.86 million has been allocated for 82 Nos. ongoing and 14 Nos.

new schemes in ADP 2011-12. Out of these 25 Nos. schemes are due for completion

in financial year 2011-12.

TECHNICAL EDUCATION

Technical education has never been a priority area in the past but the present government

has given special importance to it. This year too the number of technical institutes and

students has increased as evident from the given table. There is a sizeable number of

technical and labour workforce from Khyber Pakhtunkhwa in the Gulf States. If we

moderanize the standards and quality of our technical education, this number can be

increased many folds. Keeping in view the demand driven nature of this speciality a sum of

Rs. 1,235.354 million has been allocated for the year 2011-12.

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TECHNICAL INSTITUTES BY CATEGORY

S.No CategoryNo. of

Institutes

Staff

1 Colleges of Technology 10 1377

2 Polytechnic Institutes 11 534

3 Colleges of Commerce and Management Sciences 36 1751

4 Technical and Vocational Centers 44 1607

5 Advance Technical Teacher Training Center 01 32

6 Technical Teachers Training Center 01 41

7 Skill Development Centers 04 117

8 Information Development Centers 01 02

Total 108 5461

DISTRICT WISE ENROLMENT IN GOVT. TECHNICAL AND COMMERCE INSTITUTES

ENROLMENT

District GTVCMale

GTVCFemale

GCMS/GCC

GCT/GPI

Total

Peshawar 1026 142 1893 3275 6336

Bannu 180 239 697 1035 2151

Chitral 122 - 627 - 749

Malakand - - 308 70 378

Mansehra 161 0 1337 332 1830Nowshera 307 65 1406 945 2723

Swat 563 144 175 1128 2010

Swabi 44 17 402 755 1218

Abbottabad 61 21 1870 927 2879

Kohat 22 350 490 1101 1963

Lakki Marwat 48 - 486 282 816

Mardan 185 25 1177 1967 3354

DI Khan 323 212 850 1043 2428

Haripur 339 45 270 1315 1969

Charsadda 198 114 215 1086 1613

Karak 48 - 101 238 387

Buner - - - 194 194

Dir Upper - - 200 572 772

Dir Lower 195 - 180 608 983

Tank 163 - - - 163

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Hangu 16 - - - 16

Total 4001 1374 12684 16873 34932

COMMUNICATION AND WORKS

For financial year 2011-2012 a sum of Rs. 2326.871 million has been earmarked which

includes Rs. 1400 million for Repairs & Maintenance of Roads, Highways & Bridges

(Provincial) and Rs.550 million for the Maintenance & Repair of Buildings (Provincial). The

following table provides the details:

(Rs. in million)

HeadRevised Estimates

2010-2011

Budget Estimates

2011-2012

Communication & Works Department

(Operational Budget)342.444 376.871

Roads Highways & Bridges (Repair) 1500.000 1400.000

Building & Structure (Repairs) 600.000 550.000

Consequent upon the transfer of the maintenance and repair of certain Roads to Frontier

Highways Authority, receipts as per details given below are now being collected by the

Frontier Highways Authority (FHA) itself;

Renewal of fee of contractors registration;

Grants for maintenance of roads if any;

Sale of tender forms;

Initial fee recoverable from CNG/Petrol Pumps on provincial Highways;

Income from lease of approaches to service station/CNG/Petrol pumps on Provincial

Highways;

Toll tax on Provincial Highways; and Proportionate share in the sugarcane Cess allocated/collected corresponding to use

of Provincial Highways in a certain zone.

SUBSIDY ON PROCUREMENT OF WHEAT

WHEAT REQUIREMENT OF KHYBER PAKHTUNKHWA:

Khyber Pakhtunkhwa is historically wheat deficit province and imports wheat from

Punjab/PASSCO and abroad, for meeting its wheat requirements. Food Department Khyber

Pakhtunkhwa also caters for the needs of FATA and Afghan refugees residing in KhyberPakhtunkhwa. Apart from this Khyber Pakhtunkhwa has got a long porous border with

Afghanistan, which is a food deficit country and traditionally depends on Pakistan especially

Khyber Pakhtunkhwa for its food requirements. Impacts of the shortage of wheat or other

foodstuffs in Afghanistan are felt in Khyber Pakhtunkhwa either in the shape of shortage of

supply or price rise. In this scenario, Food Department, Khyber Pakhtunkhwa plays an

important role which is summarized as under:-

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Food Procurement, rationing and distribution.

Storage of Food grain.

Control over the price.

PROCUREMENT OF WHEAT ESTIMATED REQUIREMENT FOR THE YEAR 2010-11:

Annual estimated requirements of wheat are provided to MINFAL in April every year wherethe Wheat Coordination Committee earmarks share of each Province in accordance with its

requirements. Breakup of annual wheat requirements of Khyber Pakhtunkhwa is given as

below:-

Area

Population according to

1998 Census plus 2.61%

increase annually

Requirements @

124 KG per head

per annum.

Settled Area 26,501,855 3,286,229

FATA 4,702,591 583,122

Afghan Refugees 1,550,000 192,200

Total 32,754,446 4,061,552

It is evident from the above that wheat requirements of Khyber Pakhtunkhwa are above

4,061,551 m.tons. After adjustment of local production of 1,001,927m.tons the net

requirements comes to 3,059,624 m.tons. This deficiency is met out from stocks, procured

through MINFAL and through supply of regulated Atta from Punjab. An overview of the

quantity of wheat released during the last 3 years, from Government godowns is given in

the following table:-

Year

Opening

balance

(M.Ton)

Receipt

during year

(M.Ton)

Total

(2+3)

Releases

(M.Ton)

Closing

Balance

(M.Ton)1 2 3 4 5 6

2008-09 28,168 930,900 959,068 797,332 161,736

2009-10 161,736 523,527 685,263 509,407 175,856

2010-11 175,856 396,430 572,286 481,085 91,201

STORAGE OF WHEAT:

Wheat stores meant for Khyber Pakhtunkhwa are transported through carriage contractors

from Punjab as well as Karachi at the rates approved by the Provincial Food Committee. The

wheat is stored in food grains godowns, stock is released to flour mills according to

requirements and quota. At present, Food Department has a storage capacity of 327,150

m.tons. These godowns are scattered over 27 Provincial Reserved Centers.

WHEAT INCIDENTALS:

Food Department Khyber Pakhtunkhwa procures wheat from Government of

Punjab/PASSCO or imports through Trading Cooperation of Pakistan Karachi. A considerable

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amount is spent on its transportation and storage. However the wheat is released to flour

mills at lower rates fixed by MINFAL. The gap is met out from Provincial Government

exchequer through subsidy.

WHEAT SUBSIDY FOR THE YEAR 2010-11:

The requirement of wheat for financial year 2010-11 was assessed at 2,500,000 (M.Tons).Due to supply of Atta from Punjab, the quantity was reduce to 600,000 m.tons with an

estimated subsidy of Rs. 3,390.600 million. As the subsidy is paid on the basis of actual off

take, therefore, Finance Department has restricted the revised estimate at the level

Rs.2,000 (million). The detail of Rs.3,390.600 million is as under:-

SUBSIDY DURING THE YEAR 2010-11(REVISED ESTIMATES)

(In Millions)

S.No Source/activityQuantity in

M.tons

Subsidy per

M.ton

Total subsidy in

Million (Rs)

1 Food Punjab 600,000 5,651 3,390.600

FLOUR MILLS:

There are 244 flour mills in Khyber Pakhtunkhwa and FATA out of which only 205 are

functioning as per detail given below:-

DetailKhyber

PakhtunkhwaFATA Total

Functioning Flour Mills 199 6 205

Closed 38 1 39

Total 237 7 244

After adjustment of local production of 1001.927 metric tons, the net wheat requirements

of the province come to 3,059,624 metric tons. This deficiency is met out from stocks

procurement through MINFAL and through supply of regulated Atta from Punjab. The

quantity of wheat provided from the Government godowns is tabulated as under:-

Year

Opening

balance

(M.Ton)

Receipt during year

(M.Ton)

Total

(2+3)

Releases

(M.Ton)

Closing

Balance

(M.Ton)

1 2 3 4 5 6

2008-09 28,168 930,900 959,068 797,332 161,736

2009-10 161,736 523,527 685,263 509,407 175,856

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2010-11 175,856 396,430 572,286 481,085 91,201

TRANSPORTATION OF WHEAT:

Wheat stock of the Province is transported through carriage contractors from Punjab as well

as Karachi at the rates approved by the Provincial Food Committee. NLC being a

Government Organization is also involved in the transportation of wheat both Punjab and

Karachi to various godowns in the Province, where the stock is stored and provided to the

flour mills according to requirements.

Food Department of the Province has to purchase wheat from Govt of Punjab / PASSCO and

imported wheat through TCP Karachi. A considerable amount has to be spent on its

transportation, storage, establishment and other charges. However, the same wheat is

provided to flour mills at a lower rates fixed by MINFAL. This shortfall is met by the

Provincial Government through Subsidy. For the financial year 2010-11, an allocation of

Rs.2.500 billion was made, which has also been promised for the year 2011-12.

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ChapterChapterChapterChapter 3333:::: ProvincialProvincialProvincialProvincial RevenueRevenueRevenueRevenue ReceiptsReceiptsReceiptsReceipts PagePagePagePage 22222222

PROVINCIAL REVENUE RECEIPTS

TheProvincial Receipts for the financial year 2011-12 are estimated at Rs. 9464.095 million,

comprising Tax Receipts of Rs.3609.995 million (38.2%) and Non-Tax receipts of Rs.5854.100

million (61.8%). Tax Receipts includes 30% direct taxes and 70% indirect taxes. The direct

and indirect taxes are explained as under:-

The taxes which come under direct taxes include taxes on Agriculture, Property, Land

Revenue, Trade and Callings etc. The Revised Estimates of receipts from direct taxes during

2010-11 is Rs.1188.215 million as compared with the Budget Estimates 2011-12 of

Rs.1300.700 million, showing an increase of 9.4%.

Indirect taxes comprise of Provincial Excise, Motor Vehicle Tax, Stamp Duties, Cess of all

types, Electricity Duty etc. Revised Estimates for financial year 2010-11 from indirect taxes

is estimated as Rs.2126.165 million as compared with the Budget Estimates 2011-12 of

Rs.2309.295 million registering an increase of 8.6%.

The trend of taxes under Provincial Tax Receipts since 2006-07 to 2011-12 is demonstrated

in the following table. Most of the heads incorporated in the table show upward trend in

growth rate since 2006-07 to 2009-10. The Province has been in shadow of poor law &

order situation which has adversely affected its own receipts growth. Finance Department

has set realistic targets for the year 2011-12, objectively and in line with the potential of the

Department concerned.

(Rs. in million)

Actual Estimated

TAX2006-07 2007-08 2008-09 2009-10

Budget

2010-11

Revised

2010-11

Budget

2011-12

DIRECT TAXES

Tax from Agriculture 19.819 19.707 17.344 15.740 21.000 21.000 21.000

Urban Immovable

Property Tax (Net)57.499 56.091 41.595 84.613 76.300 69.215 141.700

Tax on Transfer of

Property (Reg.)55.656 67.476 56.103 45.645 70.000 70.000 70.000

Land Revenue 562.216 603.992 572.652 571.630 758.000 758.000 758.000

Tax on Profession,

Trades & Callings71.193 84.170 92.365 89.044 110.000 110.000 150.000

Urban CVT

Provincial--- --- --- --- --- 160.000 160.000

Total Direct Taxes 766.383 831.436 780.059 806.672 1035.300 1188.215 1300.700

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(Rs. in million)

Actual EstimatedTAX

2006-07 2007-08 2008-09 2009-10Budget

2010-11

Revised

2010-11

Budget

2011-12INDIRECT TAXES

Provincial Excise 25.836 31.370 28.345 23.636 33.000 25.000 30.000

Motor Vehicle Tax 687.153 667.494 699.093 833.916 891.000 866.360 898.890

Stamp Duty 441.396 411.504 358.435 357.360 550.000 550.000 550.000

Entertainment

Tax19.988 4.731 3.059 0.679 0.000 0.000 1.000

Others/ Hotel

Tax/Real Estate

Dealer Electronic

Media/TDC/ KDF

234.185 221.811 248.381 229.622 348.500 291.500 379.000

Electricity Duty 97.968 33.490 34.294 38.846 343.260 393.305 450.405

Total Indirect

Taxes1506.526 1370.400 1371.607 1482.841 2165.760 2126.165 2309.295

Total Provincial

Taxes2272.909 2201.836 2151.666 2289.513 3201.060 3314.380 3609.995

Non-tax Revenue consists of income from Property and Enterprises, Civil Administration,

other functions and miscellaneous receipts. For the financial year 2011-12, Rs. 4639.569

million are estimated as per given table:-

(Rs. in million)

SectorBudget

2010-11

Revised

2010-11

Budget

2011-12

Income from Property and Enterprises.

Interest 116.356 116.356 116.356

Dividends 20.000 20.000 20.000

Own Hydel Generation 842.000 1800.000 2115.017

General Administration. 114.200 118.900 127.600

Law and Orders. 420.285 483.604 496.263

Community Services. 375.000 460.000 430.000

Social Services. 282.771 256.076 295.816

Economic Services. 1541.336 1773.801 1968.526

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Miscellaneous. 1160.716 394.472 284.522

Total Non-Tax Receipts 4736.308 5423.209 5854.100

Further Department-wise, Sector-wise Non-Tax receipt is discussed as under:-

The composition of receipts from Community Services is as under:

i. Tolls on roads and bridges.ii. Sale of tender forms.iii. Registration fee of contractors.iv. Confiscation of earnest money.v. Receipts from P.B.M.C.vi. Payments for services rendered and recovery of departmental charges

by Public Health.

(Rs. in million)

Sector Actual2006-07

Actual2007-08

Actual2008-09

Actual2009-10

Budget2010-11

Revised2010-11

Budget2011-12

Building,

Communication &

PBMC.155.233 185.386 147.794 271.302 215.000 300.000 270.000

Public Health 60.419 96.788 91.535 98.982 160.000 160.000 160.000

TOTAL 215.652 282.174 239.329 370.284 375.000 460.000 430.000

F.H.A* 44.600 107.497 108.966 112.202 105.000 114.040 115.000

* Receipt retained by Frontier Highway Authority in the Road Maintenance Fund.

The composition of receipts from Social Services is as under:-

a) Education.b) Health.c) Manpower Management.

(Rs. in million)

SectorActual

2006-07

Actual

2007-08

Actual

2008-09

Actual

2009-10

Budget

2010-11

Revised

2010-11

Budget

2011-12

Higher Education,

Archives & Libraries.68.419 64.918 65.180 66.115

Elementary & SecondaryEducation.

37.353 83.948 86.466 38.065 3.000 40.000 45.000

Technical Education. 6.834 11.286 10.475 18.424 11.623 18.424 19.000

Museum. -- -- -- 0.347 0.200 0.347 0.350

Health 59.094 55.924 54.771 72.248 202.530 131.705 164.901

Manpower Management 2.991 1.716 2.107 2.553 0.500 0.420 0.450

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Total 106.272 152.874 153.819 200.056 282.771 256.076 295.816

The receipt in respect of Primary and Secondary Education and Health Department at

District level is retained in the Districts Account No.IV for utilization within the same

sectors as per decision of the Provincial Government. Similarly, receipts of big teaching

hospitals are retained by these hospitals in line with the financial autonomy given to them

The composition of receipt from Economic Services is as under:-

(Rs. in million)

SectorActual

2006-07

Actual

2007-08

Actual

2008-09

Actual

2009-10

Budget

2010-11

Revised

2010-11

Budget

2011-12

Agriculture 59.913 117.120 88.895 101.199 75.660 81.200 106.650

Fisheries 7.394 11.119 10.931 13.388 12.000 13.400 14.000

Livestock &

Dairy

Development

27.408 31.573 36.380 41.336 38.000 41.200 45.200

Forests &

Wildlife566.596 547.572 594.630 1035.687 610.000 650.000 710.000

Irrigation 270.749 268.156 220.422 267.372 334.926 384.251 405.926

Mineral

Development.265.511 336.923 298.584 563.146 455.200 580.280 658.280

Printing 36.640 27.693 36.796 50.588 37.000 45.000 50.000

Industries 2.344 2.205 2.455 2.923 2.550 2.550 2.550

Total: 1236.555 1342.361 1289.093 2075.639 1566.536 1798.881 1992.606

The General Administration includes Examination Fees, receipts-in-aid of superannuation

and receipts under the Weights and Measures and Trade Employees Act. The Civil

Administration includes receipts from Home & Tribal Affairs Department, Law and General

Administration Departments. Receipts from Police include charges of guards supplied to the

Federal and Provincial government departments, fees and forfeitures, arms license fee,

motor driving license fee and traffic fine. The general fees, fines and forfeitures, receipts

from record rooms and collection of payments for services rendered are part of the

Administration of Justice. Receipts from jails comprises of the sale of goods manufactured

in the factories located inside the jail.Department wise detail is as under:-

(Rs. in million)

SectorActual

2006-07

Actual

2007-08

Actual

2008-09

Actual

2009-10

Budget

2010-11

Revised

2010-11

Budget

2011-12

General

Administration61.992 78.194 99.715 104.193 114.200 118.900 127.600

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Administration of

Justice66.465 53.429 64.965 96.476 93.000 96.200 100.000

Police + Private

Security

Companies

269.851 289.180 434.655 469.436 321.185 380.904 389.763

Jails 3.524 7.347 7.060 3.435 6.000 6.500 6.500

Total: 401.832 428.150 606.395 673.540 534.385 602.504 623.863

This includes provision for interest of Rs.265.653 and dividends of Rs. 20.000 million in the

R.E 2010-11, whereas in B.E 2011-12 the provision is Rs.116.356 million and Rs. 20.000

million respectively.

WATER USER CHARGES OF MALAKAND III AND PEHUR HYDEL POWER STATION:

The Malakand-III & Pehur Hydel Power Station Projects have recently been handed over to

SHYDO. The water user charges have been fixed @ Rs.0.15 per connected unit and the

approximately income accrued during the current financial year would be Rs. 2 billion

approximately.

ENERGY & POWER:

Electricity duty is collected by WAPDA on behalf of the Provincial Government. At times

WAPDA did not credit the electricity duty to Provincial Government and adjusted the

amount collected against electricity bills, usually of local governments. Energy Monitoring

Cell of Finance Department is playing active role to resolve the issue of source deduction by

Federal Government/WAPDA. Further an income of Rs.900.601 million is expected to bereceived from own power generation during 2011-12 from Malakand-III and Pehur Hydel

Power Station.

Detail of total provincial receipts (targets & actual realization) during the last eight years is

depicted in the following table:-

S.No YearsBudget

Estimates

Actual

Recovery

1. 2003-04 3752.089 3619.226

2. 2004-05 4021.775 4224.6143. 2005-06 4474.166 4340.707

4. 2006-07 5200.000 4773.667

5. 2007-08 6220.000 5322.875

6. 2008-09 7444.202 5430.248

7. 2009-10 7537.200 6414.189

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SHYDO authorities have already been requested by Finance Department to take up fresh

Hydel project at the earliest and Finance Department will provide necessary funds. By doing

so, Finance Department will get more receipt in future.

REFORMS UNDER RESOURCE MANAGEMENT:

The effectiveness and credibility of Government Policies critically depend on the availability

of timely and accurate Financial and Management Information. Existing Receipts Budgeting

System was not responsive to the growing needs of resource management so a system

having the potential of real time recoding of revenues in line of expenditure was of dire

need.

To move a step forward towards e-governance and to avail the benefit of on-line revenue

information, Receipts Budget 2011-12 has been prepared under the coding structure ofNew Accounting Model (NAM) using new Chart of Accounts (CoA) for the first time. This

arrangement will definitely enhance the monitoring potential in the field of Resource

Management.

8 2010-11 7231.6245596.587

Up to April 2011

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ChapterChapterChapterChapter 4444:::: CapitalCapitalCapitalCapital Receipts &Receipts &Receipts &Receipts & ExpenditureExpenditureExpenditureExpenditure PagePagePagePage 28282828

CAPITAL RECEIPTS AND EXPENDITURE

Every province looks for new dimensions and new avenues of progress and prosperity.

Province Khyber Pakhtunkhwa also wants to excel and perform brilliantly in this modern era

of professionalism and self-reliance.

Capital receipts is an important component of the White Paper and it comprises of recovery

of loans and advances from Local Councils, Municipalities, Co-operative Societies, Industrial

Estates, Autonomous Bodies, Agriculturists and Government Servants.

The budgetary position of capital receipts of the Province for financial year 2010-11 (Budget

and Revised) and 2011-12 (Budget) is depicted in the following table:-(Rupees in million)

S. No Nomenclature

Budget

Estimates

2010-11

Revised

Estimates

2010-11

Budget

Estimates

2011-12i Recoveries of Loans and Advances 400.000 250.000 250.000

iiLoan from SBP for Recapitalization

of Bank of Khyber-- 3000.000 --

TOTAL: 400.000 3250.000 250.000

The Current Expenditure on Capital Account includes the following: -

a) Repayment of Federal Loans.b) Repayment of Foreign Loans.c) Loans and Advances to Provincial Government Employees.d) Write-off of Loans and advances to Provincial Government Employees.e) Loan to Small Medium Enterprises & Cooperative Bank/Traders.f) Pro Poor Welfare Scheme

The position regarding the above components of current expenditure on Capital Accounts

for 2010-2011 (Budget and Revised) and 2011-12 (Budget) is shown in the following table:-

(Rupees in million)

S.No Nomenclature

Budget

Estimates

2010-11

Revised

Estimates

2010-11

Budget

Estimates

2011-12

i Repayment of Federal Loans 4924.606 4743.285 4728.889

ii Repayment of Foreign Loans 3046.712 3123.594 3620.111

iiiRepayment of SBP Loan for

Recapitalization of Bank of Khyber-- -- 1500.000

ivLoans to Provincial Government

Employees.60.000 60.000 60.000

vWrite off of Loans and Advances to

Provincial Govt. Employees1.000 1.000 1.000

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viLoan to ,SMEs /Traders & Cooperative

Bank1000.000 400.000 600.000

vii Pro Poor Welfare Schemes 2000.000 2000.000 4500.000

TOTAL 11032.318 10327.879 15010.000

The outstanding debt liability of the Provincial Government on account of Federal Loans

(Cash Development Loans) as on 1st

July, 2011 is Rs 9642.701 million. The detail is given at

Annexure-I.

As far as financing of Development Programme is concerned, our Province relies on

different types of borrowings. Loans from Federal Government are one of them. In the past,

Federal Government has provided Cash Development Loans (in Pak rupee) to the provincial

government for financing its Annual Development Programmes. These loans were

repayable on the following terms and conditions:-

a. Five years grace period, during which only interest is payable.b. Repayment in 20 years.c. Markup rate determined by the Federal Govt. on yearly basis.d. Recovery on monthly basis by the Finance Division, at source, from Federal

Tax Assignment.

PREMATURE DEBT RETIREMENT:

Realizing the heavy debt servicing liability on the provincial budget, the Provincial

Government decided as part of its debt management strategy, to retire expensive loan of

the Federal Government. The Government of Khyber Pakhtunkhwa started repayment of

expensive Federal Governments loans from the financial year 2002-03. An amount of Rs.15,837.491 million has been repaid prematurely to Federal Government upto 2007-08. As a

result of this premature retirement of federal loans, the Provincial Government has

generated saving of Rs.3,406.968 million per annum. The Provincial Government in

pursuance of its Debt Management Strategy also retired expensive Federal Governments

Loans of Rs. 4037.227 million during 2010-11 which results in saving of Rs. 256.888 million

during the current financial year and will generate saving of Rs. 1027.552 million per

annum. The details of total premature retired loans and saving per annum is at Annex-II.

FOREIGN EXCHANGE LOANS:

All Foreign Exchange Loans are handled by the Federal Government. These Loans are usedfor the financing of specified Developmental Projects under an agreement between the

respective Governments. The relending terms and conditions of the loans to the provincial

Government are the same as agreed with the loan giving agencies. The terms and

conditions of loans by different agencies are as under:-

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Donor Agency Terms & conditions

World Bank (IDA)

Service Charges 0.75%

Repayment period 25 yearsGrace period 10 years

Asian Development Bank (ADB)

Service Charges 1 % to 1.5%

Repayment period 15 30 years

Grace period 10 years

IFAD

Markup rate 1% & 4%

Repayment period 30 to 40 years

Grace period 10 years

The details of outstanding liability on account of these loans against the Government of

Khyber Pakhtunkhwa is Rs. 57826.831 million as on 1st

July 2011 are given at Annex-III.

Annexure-IV demonstrate the confirmation of outstanding balances of a number of foreign

loans is under verification between Provincial and Federal Government as the disbursement

in respect of these loans has not yet been stopped and are being made to the project

executing agencies. The outstanding balance/amount disbursed upto 30.6.2011 is

Rs.55640.505 million against the allocated share of Khyber Pakhtunkhwa.

Total outstanding debt against the Provincial Government as on 1st

July, 2011 isRs.123110.037 million as detailed below:-

Federal Government Loans Rs. 9642.701 million

Foreign Exchange Loans Rs. 113467.336 million

Total: Rs. 123110.037 million

LOAN/WRITE OFF LOANS TO PROVINCIAL GOVERNMENT EMPLOYEES:

For facilitating the provincial government employees the provisions are made under these

heads for construction/purchase of houses, motor cars, motor cycles and bicycles, etc. Asfar as waiver off of these loans is given in case of death of a government employee during

service before the full recovery of principal amount of loan outstanding against the

deceased employee. The criteria for waiving off the outstanding principal amount are as

under:-

i. In case of Government servants in BPS-I to BPS-15, full outstanding amount iswaived off;

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ii. In case of Government servants in BPS-16 & above, the outstanding amount iswaived off on the basis of following formula:-

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Outstanding amount Extent of write off

1. Upto Rs.20,000/- Full outstanding amount

2. Beyond Rs.20,000/- Rs.20,000/- plus 50% of residual liability

Subject to total relief not exceeding Rs.1.5 lac (inclusive of Rs. 20,000/-).

LOAN TO SMES/TRADERS:

A Working Group is constituted by the government of Khyber Pakhtunkhwa for Economic

Revival & Investment in the Province and to look into the reasons for poor performance in

various sectors of the economy with the following terms of reference (TORs):-

Boosting development initiatives in the province.

Initiating specific interventions for marginalized areas.

Improving investment environment to raise investors confidence. Identification of areas for fast track development.

Promoting growth of mines, minerals and Hydel Power Sectors.

Enhancing interaction with private sector through SCCI, etc.

Initiation of activities on poverty alleviation and employment generation.

Implementation of the concept of Reconstruction Opportunity Zones (ROZs).

Besides the above mentioned Working Group another initiative taken by the Provincial

Government is advancing a credit line of Rs.200 million to the Banks on competition basis at

a markup rate of 6% which will be further provided by the banks to the business community

at a rate of 9% for establishment of enterprises/units.

LOAN TO COOPERATIVE BANK:

Provincial Government has revived the Cooperative Bank and is providing an amount of

rupees one billion in installments. 1st

installment of Rs.200.000 million has been provided

during current financial year 2010-11. The bank will provide loans on easy terms for

necessary equipment of farming, seeds, poultry, dairy & live stock and to rural women for

handicrafts. A sum of Rs. 400.000 million has been earmarked for the next financial year

2011-12.

The debt servicing liability is very much a problematic liability and proves to be a hindranceto the progress of the province as it places two-fold burden on the provincial resources on

account of repayment of principal and payment of mark up of loans. The

payment/repayment during the year 2010-11 and 2011-12 on account of internal and

external debt is given in the Table:-

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(Rs. in million)

PRO-POOR WELFARE SCHEMES/SPECIAL INITIATIVES:

An amount of Rs. 2,000.000 million was allocated for Pro Poor Welfare Schemes in the

budget 2010-11. Major work has been completed on the different components and the

scheme shall continue during 2011-12 with an allocation of Rs. 4500.000 million. Major

components wise status of the initiatives is as follows:-

i. PAKHTUNKHWA HUNERMAND ROZGAR SCHEME: In order to provide employmentopportunities to skilled youth and reduce poverty and promote income generating

economic activities in the province, Khyber Pakhtunkhwa Hunermand Rozgar

Scheme

is being initiated. Under this scheme loan in the range of 50 to 300thousands shall be granted to diploma/certificate holders from vocational or Skill

Development centers at very soft terms of 5% markup only. The loan facility shall be

available for business activity in the fields of marble, gem stones, minerals,

handicrafts, automobile repairing, plumbing, electrician, furniture, light engineering,

garments, embroidery, hair dressing and beauty salons, leather products,

information technology and all such subjects leading to economic stabilization. 30%

of the funds shall be reserved for females. The programme will be executed through

Budget 2010-11 Revised 2010-11 Budget 2011-12Nomenclature Mark up

charges

Repayment

of Principal

Mark up

Charges

Repayment

of Principal

Mark up

charges

Repayment

of Principal

A-INTERNAL DEBT

i) C.D.Loans 1846.734 4924.606 1669.353 4743.285 1133.968 4728.889

ii) Un-fundedDebt (GP Fund)

3100.000 -- 2900.000 ---- 4000.000 ---

iii) Other FloatingDebt

400.000 -- 150.000 --- 800.000 ---

Sub-Total (A) 5346.734 4924.606 4719.353 4743.285 5933.968 4728.889

B - Loans FromForeign Agencies 976.790 3046.712 1198.326 3123.594 1126.919 3620.111

C - Other Debt

Servicing3337.080 -- 3337.080 --- 3535.921 --

Sub-Total (B&C) 4313.870 3046.712 4535.406 3123.594 5463.999 3620.111

D Domestic Debt

(to SBP)-- -- -- -- -- 1500.000

Total (A+B+C+D) 9660.604 7971.318 9254.759 7866.879 10596.808 9849.000

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The Bank of Khyber and shall be coordinated by the Directorate of Technical

Education and SMEDA. An amount of Rs. 1300 million has been allocated for the

purpose.

ii. PUBLIC PRIVATE PARTNERSHIP SCHEME:Quality education is the top priority of the provincial government. In order to inculcate continuation of education, thegovernment shall pay the fee of all boys and girls in class 9

thand 10

thin two Union

Councils of each district, where there is no high school; under public private

partnership. A sum of Rs. 500 million has been earmarked for the purpose.

iii. STORI DA PAKHTUNKHWA SCHEME: Stori Da Pakhtunkhwa Scheme or stars ofPakhtunkhwa scheme is being introduced to motivate and encourage talented

students. The first 10 position holders in Matric and Intermediate Arts and science,

from each Education Board in the province shall be granted Rs. 10,000 (Matric) and

Rs. 15,000 (Inter) respectively for a period of two years. The objective is to encourage

talented students, improve the quality of education and foster the spirit ofcompetition among the students. A sum of Rs. 50 million has been earmarked for the

year 2011-12.

iv. B.Sc AND M.Sc NURSING SCHEME: Health is another priority area. In order toimprove the quality of service delivery in the hospitals and improve the efficiency of

nursing staff, the government is launching a B.Sc and M.Sc nursing programme. In

this regard the facility available under Khyber Medical University and Agha Khan

Medical University shall be availed. For this purpose a sum of Rs. 500 million has

been allocated in the budget 2011-12.

v. PAKHTUNKHWA MORUSI HUNERMAND SCHEME: Khyber Pakhtunkhwa has a richhistoric and cultural heritage. Many arts and crafts have its distinctive features such

as architecture, music, tiles work, pottery, inscription, jewellery etc. To keep such folk

crafts alive, the artisans are being supported under Pakhtunkhwa Mourusi

Hunermand Scheme for which an amount of Rs. 150 million has been allocated.

vi. BACHA KHAN KHPAL ROZGAR SCHEME: The scheme is aimed at employmentgenerating, interest free micro financing of Rs. 20,000 to 100,000 through The Bank

of Khyber to the people of the province. 30 % of the financing is reserved for women.

The funds are allocated to the districts in accordance with PFC formula. The Bank of

Khyber has already launched the scheme and a huge number of applications havebeen received, which reveals the interest of the public and popularity of the scheme.

For this purpose Rs. 1.000 billion has already been provided during 2010-11 and an

additional sum of Rs. 1.000 billion will be provided during 2011-12.

vii. PROVINCIAL YOUTH TECHNICAL EDUCATION SUPPORT:Under this Scheme, diplomaand certificate level technical training is being imparted to 1500 male and female

students in various market demand based technologies in the technical institutes in

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the Province and Punjab. For this purpose Rs. 300.000 million has been allocated in

the budget 2010-11 and the scheme shall continue for three years.

viii. ESTABLISHMENT OF CALL CENTERS: IT industry can turn around the wheel ofeconomy and create unlimited employment opportunities if the potential is exploited

properly. A scheme was initiated during 2010-11 for the establishment of Callcenters and software houses in Khyber Pakhtunkhwa. Under this scheme the

potential investors and Multinationals will be offered attractive incentives, to

establish call centers in the province. For this purpose a Steering Committee has been

constituted under the Chairmanship of Chief Minister. Khyber Pakhtunkhwa IT Board

has been established under an Act of the Provincial Assembly. For this purpose Rs.

200.000 million has been reallocated in the budget 2011-12.

ix. BENAZIR HEALTH SUPPORT PROGRAMME- TREATMENT OF PATIENTS OF HEPATITIS-C:Inorder to provide free treatment to the poor p

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