AJK unveils Rs141,400m tax-free budget

MUZAFFARABAD: The Azad Jammu and Kashmir presented a tax-free Rs141,400 million budget for the next financial year on Tuesday.

The budget proposes the development outlay of Rs28,000 million which is 14pc more than that of the outgoing financial year while non-development expenditure has been estimated at Rs 113,400 million. Presenting the budget in the house, Azad Kashmir Finance Minister Dr. Najeeb Naqi said that next financial year's budget had been made after complete financial planning to project maximum resources for the overall development of the region.

He said 66pc of the developmental budget would be spent for the completion of 176 projects while work on 209 projects would start during the next financial year. He announced 10pc ad hoc relief in the pay and pension of employees while a 25pc disparity reductions allowance has also been proposed in the budget. Explaining the strategy of the developmental budget he said top priority had been given to the communication sector with an allocation of Rs10 billion which is 36 percent of the total development budget earmarked for the next financial year.

The finance minister said the power sector would receive Rs2 billion and more than two hundred electricity transformers would be installed while 18,000 new service connections would be provided to consumers. "New grid stations will also be set up in different parts of the region to provide uninterrupted power supply to people. The government is giving special importance to utilize water resources to produce cheap electricity. To achieve the objective, 23 hydel power projects have been completed and electricity of one billion rupees produced. Over Rs800 million would be spent during the next financial year to initiate work on new hydel power projects in different parts of Azad Kashmir," he added.

The education sector will get Rs3.2 billion while the health sector would receive Rs1.75 billion. Over Rs200 million has been earmarked to control the corona pandemic. 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.

The finance minister said the social sector would receive 22pc and the infrastructure sector 68pc financial resources during the next financial year. He said the physical planning and housing sector would get Rs4.8 billion while Rs1.7 billion was earmarked for the local government and rural development sector for the next financial year to complete ongoing and new development projects.

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

He said Rs4 billion rupees would also be provided by the ministry of Kashmir affairs for the completion of ongoing development schemes launched to mitigate the suffering of people affected by Indian firing.