PESHAWAR: A dormant portion of Rs5.67 billion has brought down the Khyber Pakhtunkhwa district development budget for the year 2016-17 to Rs28.27 billion.

In his budget speech on Tuesday, KP finance minis ter Muzafar Said had announced Rs33.9 billion development funds for district governments across the province.

However, he informed the post-budget briefing at the Civil Secretariat`s cabinet room on Wednesday that though the government had allocated Rs33.9 billion for the district ADP, the Rs5.67 billion portion of it depended on the availability of funds.

`The government will ensure the payment of the remaining amount of Rs28.23 billion to the district governments in 2016-17,` he said.

The minister said the province`s Annual Development Programme valued at around Rs125 billion and that its Rs12.2 billon portion would be funded through internal borrowing.

He said the government`s finances remained under pressure due to the centre`s failure to pay the province`s net hydel profit arrears and extra expenditure caused by natural disasters.

The minister said the government had to cut down development budget due to unavailability of funds.

He defended the budget saying it was a balancedbudgetandhadnonew tax.

The minister said the government had only some minor adjustment in the existing taxes.

He said the government had increased the salary of its employees and pension 10 per cent.

The minister said the pay and pension raise and other incentives for government employees would cost the government Rs14.2 billion.

He said the size of the ADP was aroundRs161 billion, including Rs36 billion foreign development assistance.

The minister said the province`s core development programme`s volume was Rs125 billion, including Rs113 billion to be provided by the government and the rest coming in through the internal commercial borrowing.

He claimed the government had increased funding for almost all major sectors in the budget.

`The education sector allocations have gone up 10pc compared to the outgoing year, health`s 28pc, social welfare and women development 23pc, police 1pc, irrigation 6pc, technical education and vocational training 12pc, sports, culture and tourism 26pc, agriculture 8pc, communication sector 16pc and pension 11pc,` he said.

The minister said the government had also earmarked Rs2.9 billion for wheat subsidy and Rs8.8 billion for payment of markup on loans, Rs11 billion for debt repatriation and house building and motor cycle advance for government employees.

He said the government would provide Rs111.58 billion to the district government salaries and Rs17.44 billion for other expenses.

The minister said Rs1.56 billion had been earmarked for tehsil municipal administration and Rs1.5 billion for local councils.

To a question about the borrowing of Rs12 billion to fund ADP projects, provincial finance secretary Ali Raza Bhutta, who was also in attendance, said the provinces were allowed to raise funds through borrowing to meet own needs under the Constitution and the National Economic Council rules.

He said KP had so far not exercised that right but was going to avail itself of that in the next fiscal.

The secretary said the budget estimates were realistic and that all targets set for the next financial year would be achieved.

He denied the current budget was a deficit budget.

KP secretary home Munir Azam and other senior officials from finance and other departments were also present on the occasion.