No new taxes in Azad Kashmir’s Rs141bn budget

MUZAFFARABAD: The Pakistan Muslim League-Nawaz-led (PML-N) Azad Jammu and Kashmir (AJK) government on Tuesday presented a “tax-free” Rs141,400 million (Rs141 billion) budget for fiscal year 2021-22 here in the AJK State Legislative Assembly.

The budget provides a development outlay to the tune of Rs28,000 million (2.8 billion) which shows a 14 per cent increase against the current financial year allocations while non-development expenditure has been estimated to Rs113,400 (113.40 billion).

Presenting the budget in the house, Azad Kashmir Finance Minister Dr Najeeb Naqi said the next financial year’s budget has been prepared to project maximum financial resources for the overall development of the state. He said 66 per cent of the developmental budget would be spent for the completion of 176 developmental projects while the work on 209 developmental projects would also be started during the next financial year. He announced 10 per cent ad hoc relief in pay and pensions for employees while 25 per cent Disparity Reductions Allowance had also been proposed in the budget. Explaining the strategy of the developmental budget, he said top priority had been given to the communications sector with an allocation of 10 billion rupees, which was 36 per cent of the total development budget earmarked for the next financial year.

Under this sector, the road infrastructure will be further improved besides completion of ongoing development projects.

The finance minister said the power sector would receive Rs2 billion and more than 200 electricity transformers would be installed, while 18,000 new service connections would be given to consumers and new grid stations would also be set up in different parts of the state to provide uninterrupted power supply to the people.

The minister said the government was giving special importance to utilise water resources to produce cheap electricity in the state. He said to achieve this objective, 23 hydel power projects had been completed and electricity of Rs1 billion had been produced.

He said Rs800 million would be spent during the next financial year to initiate work on new hydel power projects in different parts of Azad Jammu and Kashmir. The education sector will get Rs3.2 billion rupees while the health sector will receive Rs1.75 billion during the next financial year. Rs 200 million had been earmarked to control the coronavirus pandemic in the state, he added.

He said Rs720 million had been set aside for the completion of foreign aided projects and Rs400 million for the tourism sector to boost tourism activities in the state. The minister said the social sector would receive 22 per cent, the productive sector 10 per cent and the infrastructure sector would get 68 per cent financial resources during the next financial year.

He said the physical planning and housing sector will get Rs4.8 billion while Rs1.7 billion had been earmarked for local government and the rural development sector for the next financial year.

The minister thanked the federal government for extending Rs28 billion for the development of Azad Kashmir including the provision of Rs2 billion foreign added projects despite the financial crunch.

He said Rs4 billion rupees would also be extended by the Ministry of Kashmir affairs for the completion of ongoing development schemes launched to mitigate the suffering of the people due to Indian forces’ firing.

The minister said the Muslim League government had fulfilled all its commitments and promises made with the people according to its manifesto and had presented continuously the fifth “people-friendly development-oriented budget”. Speaker of the Azad Jammu and Kashmir legislative Assembly Shah Ghulam Qadir presided over the session.