WHITE PAPER 2015-16 GOVERNMENT OF KHYBER PAKHTUNKHWA FINANCE DEPARTMENT WHITE PAPER 2015-16 Government of Khyber Pakhtunkhwa Finance Department FOREWORD Transparency and accountability are the two cornerstones of any pro-people government. They are the only means for reducing the literal and metaphorical gap between the people and the state and making them equal and essential part of the decision making process. The Provincial Government of Khyber Pakhtunkhwa has a strong commitment for open, transparent and accountable governance. This commitment is manifested by the promulgation of the Right to Information Act, 2013, and the Right to Services Act, 2013. 2. The publication of Budget White Paper by the Government is an on-going effort to present the budgetary information in a non-technical and easy to understand manner. Being the principle instrument for shaping and implementing fiscal policy of the Government, the presentation of budget through this orientation comprehensively portrays various facets of the budget. Hence, this publication ensures provision of needed information in user friendly manner with the aim of enabling common person understand the complex and inter-mingled information in an easy and cognizant manner. The key areas depicted in the Budget White Paper include current revenue receipts and expenditures, capital receipts and expenditures, development budget, funds and investment management, local government finances, debt management and key public financial management reforms. 3. It is pertinent to note here that beside other budgetary documents, the publication of Budget Estimates for Service Delivery and the Citizen’s Budget are continued as part of greater commitment of the Government to educate its citizens on how their tax money is spent. The later leads to greater transparency whereas the former strengthens the fixation of accountability for the provision of public services. The readers are encouraged to read these two publications for greater understanding of the uses of public money by the Government. 4. The present Government is in the third year of its tenure and thus has deeply rooted its transformational agenda through coveted public investment endeavours. The government is now well set on reform trajectory towards realization of its earlier visualization. These public investment portfolios articulated through the budgetary allocations summarized in this document are drawn upon the directions and sectoral priorities set forth in the guiding manuscripts of the Provincial Government i.e. Strategic Development Partnership Framework, Integrated Development Strategy and Economic Growth Strategy. The budget for the year 2015-16 has been based on the principles of inclusive growth to march towards socio- economic development. 5. The White Paper for 2015-16 offers details on sector wise achievements and performance during last year and future plans for the ensuing year to transform the vision of the Government into reality. The performance and progress exhibited by the Government shall be viewed amid the challenging environment owing to multiple crises including insurgency and militancy, natural disasters viz-a-viz stringent socio-economic development imperatives. The formulation of budget, therefore, is a complex and difficult business for balancing the competing demands on resources for meeting the socio-economic development preferences of the Government. I, therefore, acknowledge the valuable support and guidance of the political leadership, especially the Honourable Chief Minister and Minister for Finance, for shaping the budget 2015-16. I also acknowledge the valuable contributions made by development partners, the Sub-National Governance Program and other organizations, professional bodies and all stakeholders. 6. It goes without saying that the dedication and hard work of the officials and officers of the Finance Department made it possible to put together the varied and voluminous information acquired from organizations across the Government in a meaningful and readable form for ease and understanding of the readers. I am also grateful to the line departments for providing their timely inputs and assistance in compilation of the White Paper and other budgetary publications. SYED SAID BADSHAH BUKHARI Finance Secretary Government of Khyber Pakhtunkhwa 15th June 2015 ABBREVIATIONS ADEO Assistant District Education IDS Integrated Development Officer Strategy ADP Annual Development Program INTOSAI International Organization of ADR American Depository Receipts Supreme Audit Institution ASDEO Assistant Sub Divisional IPD Inverse Population Density Education Officer JCB Japan Credit Bureau ASP Assessment and Strengthening JCR-VIS Japan Credit Rating Agency – Program Vital Information Services BBL Oil Barrel KCM Kazi Committee Methodology BCC Budget Call Circular KP Khyber Pakhtunkhwa BE Budget Estimates KPHA Khyber Pakhtunkhwa Highway BOK Bank of Khyber Authority BTR Budget Transparency Review KPOGCL Khyber Pakhtunkhwa Oil & Gas C&W Communication and Works Company Limited CBDRM Community Based Disaster Risk KPRA Khyber Pakhtunkhwa Revenue Management Authority CBO Community Based Organization KSE Karachi Stock Exchange CDL Cash Development Loans KUST Kohat University of Science and CDLD Community Driven Local Technology Development KWh Kilowatt hour CM Chief Minister LGA Local Government Act CNG Compressed Natural Gas LRH Lady Reading Hospital CVT Capital Value Tax M&E Monitoring and Evaluation DCTE Directorate of Curriculum and M&R Maintenance and Repair Teachers Education M. Ton Metric Tonnes DDCF District Delivery Challenge Fund MCH Mother and Child Health DGCD District Governance and MGCL Mari Gas Company Limited Community Development MMBTU Million Metric British Thermal DHQ District Head Quarter Units DRM Disaster Risk Management MMCF Million Cubic Feet E&P Energy and Power MNA Member of National Assembly E&SE Elementary and Secondary MPCL Mari Petroleum Company Education Limited FATA Federally Administered Tribal MTBF Medium Term Budgetary Areas Framework FBE Forward Budget Estimates NEPRA National Electric Power FM Frequency Modulation Regulatory Authority FY Financial Year NFC National Finance Commission GDP Gross Domestic Product NGO Non-Governmental Organization GoKP Government of Khyber NHP Net Hydel Profit Pakhtunkhwa NWA North Waziristan Agency GST General Sales Tax NWFP North West Frontier Province HLD High Level Dialogue O&M Operation and Maintenance HMC Hayatabad Medical Complex OBB Output Based Budgeting HRF Human Resource Facility OECD Organization for Economic Cooperation and Development OGDCL Oil & Gas Development RMU Reforms Management Unit Company Limited ROA Return on Assets OGRA Oil and Gas Regulatory Authority ROE Return on Equity OPL Ocean Pakistan Limited RR&S Relief, Rehabilitation and OZ&T Octroi and Zilla Tax Settlement P&D Planning and Development RTI Right to Information PACRA Pakistan Credit Rating Agency RTS Right to Public Services PaRRSA Provincial Reconstruction and SBP State Bank of Pakistan Rehabilitation Authority SCC Sectoral Coordination PASSCO Pakistan Agricultural Storage & Committees Services Corporation SDPF Strategic Development PBMC Provincial Building Maintenance Partnership Framework Cell SHYDO Sarhad Hydel Development PCSW Provincial Commission on Status Organization of Women SNE Schedule of New Expenditure PDMA Provincial Disaster Management SNG Sub-National Governance Authority Programme PEDO Pakhtunkhwa Energy SNGPL Sui Northern Gas Pipeline Development Organization Limited PEFA Public Expenditure and Financial SSGCL Sui Southern Gas Company Accountability Limited PEPCO Pakistan Electric Power TDP Temporarily Displaced Persons Company TEC Technical Evaluation Committee PFC Provincial Finance Commission TMO Trainee Medical Officer PFM Public Financial Management UBP Utility Bill Payment PHE Public Health Engineering UC Union Council POL Petroleum Oil Lubricants UNDP United Nations Development PPL Pakistan Petroleum Limited Program PSDC Petroleum Social Development USAID United States Agency for Committees International Development R&D Research and Development WAPDA Water and Power Development RE Revised Estimates Authority TABLE OF CONTENTS Contents Page # GENERAL ABSTRACT ........................................................................................ i GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2015-2016 ................................. i BUDGET AT A GLANCE ................................................................................... ii SUMMARY POSITION OF REVENUES FOR THE YEAR 2014-15 & 2015-16 .......................... iii SUMMARY POSITION OF EXPENDITURE FOR THE YEAR 2014-15 & 2015-16 ....................... iv MEDIUM TERM FISCAL FRAMEWORK 2015-18 ......................................................... v CHAPTER 1 - RECEIPTS.................................................................................... 1 GENERAL REVENUE RECEIPTS .......................................................................... 1 1. TRANSFERS FROM FEDERAL GOVERNMENT ................................................... 1 2. PROVINCIAL OWN RECEIPTS ................................................................... 11 GENERAL CAPITAL RECEIPTS .......................................................................... 17 DEVELOPMENT RECEIPTS ............................................................................... 17 STATE TRADING IN FOOD (ACCOUNT-II) ............................................................. 17 CHAPTER 2 - EXPENDITURE