The 8 billion and 350 million rupees deficit budget of Azad Jammu and Kashmir Council presented for the fiscal year 2011-12.
The proposed estimated expenditures for the new fiscal year is Rs. 8352.234 million, while proposed the receipts target of Rs. 6192 million, Thus, there is a deficit of Rs. 2160.234 million.
Federal Minster for Kashmir Affairs Mian Manzoor Ahmad Wattoo presented the budget for Kashmir Council here on Saturday.
He said for the year 2010-11, the AJ&K Council set the revenue target of Rs. 5796.853 million out of which the income tax target was Rs. 5500 million, adding that an amount of Rs. 6056.313 million has been collected due to the professional and concerted efforts of the taxation officers of Income Tax Department and AJ&K Council Board of Revenue.
The AJ&K Council also approved the projected expenditure of Rs. 9007.201 million for the year 2010-11. The deficit of Rs. 3210.348 million was proposed to be met through dis-investment of Council’s investments, drawal of funds from Council Consolidated Fund, by adapting the economy measures; and by surpassing the income tax target etc. The overall expenditure remained at Rs. 8632.065 million.
He said that the actual deficit, however, remained at Rs. 2575.752 million which was met by the dis-investment of Rs. 1000 million, by affecting economy measures, drawal of funds from Council Consolidated Fund and by surpassing the income tax target.
He said for the year 2011-12, we are proposing the receipts target of Rs. 6192 million, whereas the proposed estimated expenditure is Rs. 8352.234 million. Thus, there is a shortfall of Rs. 2160.234 million.
He said the receipt target includes Rs. 6000 million as income tax collection. The development expenditure is estimated at Rs. 2200 million inspite of acute financial crunch. The operational expenses are proposed at Rs. 970 million.
He said that expenditure is 12% higher than that of the last year’s non-development expenditure despite substantial increase in pay and allowances proposed to be allowed on the analogy of the Government of Pakistan. The 80% net share of income tax collection is proposed to be Rs. 4635.985 million.
He said that the AJ&K Council’s major source of revenue is Income Tax collection, adding that the net receipts thereof are distributed between the “Government of AJ&K” and “AJ&K Council” in the ratio of 80:20. The 80% share of net collection of Income Tax is released to the AJ&K Government on monthly basis through the budget of AJ&K Council. The balance 20% kept by
AJ&K Council is spent on its operational expenses relating to Members, Advisors, Secretariat, Departments / Institutions working under its administrative control and pensions etc. as well as its development outlay.
He said that the financial incentives and relief given to the employees of the Government of Pakistan are allowed to the employees of AJ&K Council, adding the Government of Pakistan has revised the Pay Scales and Allowances of its employee’s w.e.f. 1st July, 2011. Hence, we also propose to adopt the same for the employees of AJ&K Council.
Similarly, we also propose to adopt the Secretariat Allowance / Personal Allowance and one Special increment allowed by the Azad Govt. of the State of J&K to its employees in the same manner and to the same extent, he said.
He said that the AJ&K Council Secretariat launched a merit based scholarships / stipends programme for 250 J&K State Subject students studying in various Universities / Institutions of Pakistan / AJ&K @ Rs. 10,000/- per annum. The programme has been lauded by the student community; however, they desired that the amount of stipend may be enhanced. Accordingly, we are raising the quantum of stipend to Rs. 15,000/- per annum.
He said that an amount of Rs. 2200 million was allocated for the purpose AJ&K Council’s development activities for the year 2010-11. (SANA)