Balochistan to boost spending on security, job creation

Balochistan Chief Minister Dr Abdul Malik Baloch signing the provincial budget for 2014-15

QUETTA: Balochistan’s Rs215.7 billion budget for the next financial year proposes to significantly boost spending for improving security situation in the province, building social and economic infrastructure and creating new jobs in the province.

Other fiscal and development choices that the Abdul Malik Baloch government has spelt out in its second budget include enforcement of financial discipline, increase in the tax revenue, development of coastal and mineral wealth, reduction in corruption, focus on coal- and solar-based power generation and facilitation of private investment through public-private partnership.

The budget carrying a hefty deficit of Rs15.6bn plans to invest Rs50.7bn, or almost a quarter of the total outlay, in development. The development spending also includes foreign project assistance of Rs2.7bn.

The 8.5 million people of the province that constitutes 43 per cent of the country’s land mass aren’t destined to live in poverty and backwardness, thundered Mir Khalid Langov, the adviser to the chief minister on finance, at the outset of his budget speech as he blamed financial constraints as a major obstacle in the way of development of the province’s economy. “The financial problems facing Balochistan cannot be resolved without federal help.”

Rs215bn budget for financial year 2014-15 unveiled
The new budget’s total outlay is 17pc heftier than the outgoing year’s Rs198.3bn. The annual development plan (ADP) is also higher by 16pc. It has announced several financial and other benefits for the provincial government employees, including 10pc ad hoc raise in salaries and pensions. The government hopes to create about 4,000 new jobs as around 9pc of population is estimated to be unemployed.

The minimum wages have been fixed at Rs10,000 a month and its violation will be treated as a cognisable offence.

The provincial government has already formed the Public Procurement Authority to plug leakages in public funds and proposes to establish Board of Investment and Special Economic Zone Authority to create industrial estates for attracting private investors, and Balochistan Revenue Authority for collecting provincial sales tax on services from the next financial year.

The government, which is facing insurgency in parts of the province and growing incidents of kidnappings for ransom and target and sectarian killings, has increased allocation for maintenance of law and order by 27pc. The money will be spent to equip police and Levies forces with modern equipment, improve intelligence through the establishment of CID to counter terrorism and other crimes and better capacity of anti-terrorism force, etc.

The development focus has been shifted to improving infrastructure for education, health, power, water, women development and roads, and substantial raise in allocations for these sectors in the next year’s development and non-development spending has been suggested.

Development of agriculture, rural areas, fisheries, livestock, irrigation and mining and reduction in poverty through interventions like the Rural Poultry Self-Support Programme are also among top priorities of the government to boost the production sector to woo private investment and create jobs.

The adviser claimed that the coalition government led by Dr Baloch had brought about a visible change in the provincial economy despite problems and impediments during the last one year. “We have introduced reforms in different areas of the provincial economy and made concerted efforts to escalate growth, cut incidence of poverty, reduce non-development expenditure, create fiscal space for development, improve public service delivery in education and health sectors, and create jobs,” Mr Langov said.

He said Balochistan was passing through a transition which he hoped would usher in a new era for its people. “Our budget is based on our dream of achieving a self-reliant, developed and prosperous Balochistan,” he said.

< Dawn >

Balochistan govt presents budget of Rs215.7b

QUETTA: The coalition government of Balochistan presented a  Rs215.713 billion deficit budget for financial year 2014-15, in an assembly session on Thursday evening.

It was the second annual budget presented by Dr Abdul Malik Baloch-led coalition government of the Pakistan Muslim League-Nawaz (PML-N), Pashtoonkhawa Milli Awami Party, National Party and Pakistan Muslim League-Quaid (PML-Q).

Speaker Mir Jan Muhammad Jamali presided over the budget session, while Khalid Langove, the provincial adviser on finance, presented the budget.

“The total income is estimated at Rs200.051 billion, and the deficit would be Rs15.662 billion,” langove said.
Langove added that Balochistan expects to collect an income of Rs8.970 billion from its own resources in the upcoming fiscal year, while the province would receive Rs141.213 billion from the divisible pool and Rs16.858 billion from direct transfers. Rs10 billion from other receipts and Rs3.279 billion from capital receipts are expected.

The main sectors in which the budget has been divided is as follows:

PSDP
An amount of Rs50.742 billion has been allocated for the Public Sector Development Programme (PSDP) and Rs164.97 billion has been allocated in head of non-development expenditures.
Employment
About 3,925 new jobs have been created in different government departments including education, health and others. Furthermore, the federal government has promised financial support for providing jobs to the youth of Balochistan in federal institutions.

Law and order
For the maintenance of law and order and for departments pertaining to law and order, Rs1.7251 billion has been allocated in the budget.
“Our government has earmarked Rs1.7251 billion for the police, Balochistan Constabulary, levies force and other departments for maintenance of law and order,” he said.

Education
A sum of Rs5 billion has been allocated for the establishment of the Balochistan Education Endowment Company. The majority of this fund will be for infrastructure development.
Additionally, Rs324.884 million has been allocated for the provision of facilities to schools and colleges. Rs400 million has been budget for provision of furniture and scientific equipments to schools, Rs750 million for repair and renovation of schools and Rs500 million for the Chief Minister Endowment Fund.
The budget also allocated Rs750 million for the upgradation of 200 primary schools to middle schools, and Rs425 million for upgrading 50 middle schools to high schools.
He added that the education budget for fiscal year 2014-15 is 16% more than last year’s budget.

Health
The Balochistan government has allocated Rs15.362 billion for health.
Non-development expenditures of the health sector was allocated Rs14.148 billion, and Rs1.214 billion was allocated for the provision of free medicines to patients at government-run hospitals.

Solar energy
With power the main problem across Pakistan the Balochistan government said that it had allocated Rs1 billion in the new fiscal budget for a solar home system project. The project aims to provide electricity to 300 villages. Langove added that such projects would help in meeting the energy requirements after they are implemented.

Roads
Langove announced that Rs9.726 billion funds have been allocated for the communication sector, including 391 schemes for the construction of roads. Among them, there will be 152 new projects and 239 ongoing road schemes will be completed.

Foreign aid
The Balochistan budget includes Rs2.723 billion in foreign aid.

Water schemes
Referring to the water issue, he said that an amount of Rs400 million was allocated for the installation of solar energy system to supply electricity to water supply schemes.

Awaran earthquake
For repairing and renovation of schools damaged in the earthquake which occurred in the Awaran district, Rs200 million was allocated.

Quaid-e-Azam residency
The speaker said that Rs50 million had been allocated for the renovation of the Quaid-e-Azam Residency that was damaged and burnt down last year.

Sports
The sports sector was allocated Rs1814.013 million.

Ban on perks
As part of austerity measures in the Balochistan budget, Langove said that there would be a ban on spending government funds for medical treatment in foreign countries and ceremonies in hotels on the expenditure of the government.

The Public Accounts Committee of the Balochistan Assembly would also be set up with immediate effect.
Outlining further austerity measures, he said that a complete ban has been imposed on purchase of luxury vehicles for government departments.

< Express Tribune >

Major focus on health, education: Balochistan unveils Rs44bn ADP

File Photo:Bolan Medical College Quetta

QUETTA, Of the Rs44 billion set aside in the Balochistan budget for next year’s Annual Development Plan, a major chunk of Rs29.30bn or more than 66 per cent would be spent on new schemes while Rs14.63bn would be utilised on 638 ongoing schemes.

The next year’s development spending focuses more on improving social service delivery rather than on infrastructure building stressed by the previous government.

“An effort has been made in the next budget to bring a change by focusing more on social sector and on production rather than investing on development side.

“By doing so, the government can bridge the gap between the targets and current status indicators of health and education set in Millennium Development Goals (MDGs) declaration,” the document said.

For the first time in the history of the province, a drastic increase in investment has been raised in social sector, especially education and health.

According to budget papers, 101 new schemes would be initiated to implement the development vision of the new coalition government as per its priorities.

This was, however, unclear whether the old schemes have been completed or left incomplete as no fresh funds have been allocated for such schemes.

The total number of schemes to be executed next year would be 739.

All new schemes are of collective nature and would benefit the public at large and most of them were included in the plan after a thorough scrutiny and consultation with public representatives and civil society.

The government hopes that the next year’s development programme would contribute a lot to poverty-alleviation.

Besides improving the delivery of social services to the people, next year’s development programme focuses on creating infrastructure to promote industry, agriculture and trade in the province.

In addition, it would help government exploit the mineral potential of the province and develop the fisheries sector, which one its major economic strengths.

Major sectoral allocations include education 23pc, health and public health engineering 14pc, water supply 6pc, roads 18.6pc, power 6pc, and agriculture 5.2pc.

The proposed development spending for the next year is 22pc more than Rs36bn estimated for this year.

The money for development has been raised from the revenue surplus of Rs40 billion and the expected foreign project assistance of Rs4bn.

Major initiatives include establishment of common border markets with Iran and Afghanistan, creation of special economic zones in Quetta and Lasbela and industrial estates in Hub, Quetta and Dera Murad Jamali, installation of water filter plants at various areas of the province, including Gwadar, cancellation of leases in the mineral sector, and production of solar power for 300 villages.

< Dawn News >

Balochistan budget

The last of the provincial budgets, that of Balochistan, has now been announced; and the electoral and government forming process that began with the election on May 11 is largely over. There are portfolios to be allocated here and there, but the peaceful transition of one government to the next is mostly complete.

All the provincial budgets presented so far have distinctive characteristics beyond the common theme of the federal divisible pool as a primary income. In a province that has the lowest aggregated literacy rate and one of the lowest female literacy rates in the world, education has been prioritised with a 42 percent increase in the education budget and commitment to setting up residential schools for young women in the hope of encouraging more of them to stay longer at their school desks.

A higher education commission is to be established, the curriculum is to be purged of ‘hate material’, the Bolan Medical College is to be upgraded to university status and three more medical colleges will be set up. There is now a Rs5 billion endowment fund set up to grant scholarships to the most talented in this the poorest of provinces. For the first time there is to be a public accounts committee able to investigate allegations of corruption in the hope of achieving greater transparency and accountability.

The other big winner was development, with an increase of 29 percent over last year but with the focus firmly on completing work in progress rather than grand new schemes. Most of the Rs44 billion development budget will be spent on health and education – a positive and very visible investment in the human capital of the province that will quickly start to pay dividends. As elsewhere, provincial revenues are small at a mere Rs6.4 billion, almost matched by the Rs4 billion in foreign aid the province will receive.

Of particular interest is the proposed establishment of the Balochistan Energy Company and Rs500 million to set up coal-fired power plants. For the first time there is to be investment in substantial alternative energy sources. Balochistan has an abundance of desert and clear skies – solar panels are to be installed to power up to 20,000 agricultural tube wells, with a long-term goal of running the entire provincial irrigation network on solar power.

There is to be no more purchasing of luxury vehicles in the government sector and no more VIP trips abroad for medical treatment. Although these are largely cosmetic in that they only represented a fraction of the overall budget, the budget speech had a firm focus on austerity and a commitment to using local resources to their best advantage. Balochistan has more hills to climb than all the other provinces.

The new budget is several steps along the road, but unless the appalling security situation in the province shows signs of mitigation then even the most carefully-crafted of budgets will be no more than sticking plaster.

< The News >

Balochistan Budget 2012-13

QUETTA - The PPP-led Balochistan coalition government presented its fifth and last tax free and balanced budget to the tune of Rs. 179.931 billion, including the development outlay of Rs. 35.819 billion and Rs 2.612 billion of foreign assistance, in provincial assembly session.

Balochistan Finance Minister Mir Asim Kurd Gaillu presented the budget in the assembly with the Speaker Muhammad Aslam Bhootani in the chair.

The total receipts for the next year budget have been estimated Rs 179.931 billion, including Rs 149.144 billion of revenue and Rs 30.787 of capital.

The total revenue receipts are Rs 149.144, including Rs 114.206 billion from divisible pool, Rs 12.785 billion from straight transfer and Rs 4.075 billion from Services on General Sales Tax. Balochistan will receive Rs 12 billion during the next fiscal year under the head of arrears of gas revenues.

The arrears include Rs 2 billion on well head price on gas and Rs 10 billion on Gas Development Sur Charge (GDS). However, the province’s own resources (receipts) have been estimated as Rs 5.207 billion as compare to current year’s Rs 4.851 billion.

The capital receipts have been estimated as Rs 30.787 billion. However, Balochistan will receive Rs. 2.612 billion for development under the head of foreign assistance, including Japanese grant of 0.006 billion.

The total revenue expenditure for the next fiscal year was estimated as Rs 107.280 billion and Rs 36.832 billion as capital expenditure. The highest allocation of revenue expenditure of Rs 22.471 billion has been made for education and services, while the economic affairs will get Rs 22.930 billion in the next fiscal year budget.

Rs 21.606 billion was earmarked for General Public Service while Rs 13.530 for Public Order Safety Affairs. The province allocated Rs 9.851 billion for health and services, Rs. 3.341 for recreation, culture and religion affairs, Rs 8.750 billion for housing and community amenities, Rs 1.162 billion for social protection and Rs 3.341 billion for debt servicing (interest).
The government has earmarked Rs 36.832 billion in the next financial year’s budget for capital expenditure, including Rs 17.408 billion for public debt (to be discharged), Rs 6.675 for state trading and Rs 3.808 billion for repayment of central loans (principal). The capital expenditure will also include Rs 8.500 billion for investment in Reko Diq Copper-Gold Project and Rs 3.500 billion in energy sector.

The Balochistan government has also allocated Rs 35.819 billion as compare to Rs 31.368 billion in the current year for Provincial Social Sector Programme (PSDP) which comprise Rs 33.198 billion as PSDP and Rs 2.612 billion as foreign assistance loan.

In the budget 2012-13, 20 per cent increase in salaries of government employees and in the pension has been made, while 6,530 new vacancies have also been created.

In his budget speech, Gaillu briefly spoke at length about his government budgetary measures during 2010-11. He said 6,530 new vacancies in different government departments had been created in the new budget adding that the federal government also promised provision of funds for providing jobs to 15000 youths of Balochistan.
“The government has also allocated funds for providing internship to more 15,000 youths in Balochistan in government departments,” he added. He said the minimum monthly wages had been increased from Rs 7,000 to Rs 9,000.
Gaillu said Rs 13.53 billion had been allocated for maintenance of law and order and the related departments, while Rs 9 billion had been budget for the health sector and Rs 22.47 billion for education Sector.

Rs 2 billion had been earmarked for development projects in the education sector while 150 new schools would be built in next year.

He revealed that funds had been allocated for implementation of solar home system which would cost Rs 888 million.
“Rs 800 million financial aid provided by the Government of Japan would be spent for making Pasni Fish Harbour operational,” he said. The finance minister Rs 8.50 billion has been allocated for the Reko Diq project as the provincial government had decided to set up investment board in order to introduce Reko Diq and Saindak copper and gold projects in the market in order to get financial benefits from them.

“The Balochistan government has allocated Rs 3 billion for subsidy on agricultural tube-wells in the province while the federal government would also release Rs 4 billion in this regard. He said that Rs 5.20 billion has been earmarked for THE agriculture sector,” the minister said, adding that farmers would be given special financial aid package.

Gaillu said Balochistan would collect income of Rs 05 billion from its own resources, adding that the province would get other receipts from the National Finance Commission (NFC) Award, Gas Surcharge and others. He said revenue estimates of the province were Rs 107 billion and capital receipts is Rs 36 billion. He noted that PSDP included 720 on-going and 732 new schemes.

He said Rs 12 billion has been earmarked for communication sector and construction of roads and others. He said the budget included Rs 2.61 billion of foreign aid. The minister also said that an amount of Rs 3.84 billion had been allocated for construction of dams and repairing of canals.

He said the coalition government was making efforts to initiate dialogue with all the annoyed parties and also removed many checkposts of Frontier Corps besides withdrawal of cases against dissident leaders.

He said the government had also taken up the issue of missing persons with the federal government. “More than 150 missing persons have been recovered and efforts are underway for the recovery of rest of missing persons,” he added.
Balochistan unveils Rs179.93b balanced budget.

<The Nation>