PESHAWAR: Khyber Pakhtunkhwa finance minister Muzaffar Said on Tuesday said the one-step upgradation of BPS 1-15 government posts, increase in salary and pension, and other similar incentives announced in the budget 2015-16 would cost Rs20 billion.

`These expenditure will cross the figure of Rs35 billion in the next few years, he said in a statement distributed to the media in the post-budget news conference here.

The minister said a committee would be formed to recommend increase in the salary of government officials from BPS 17 and above.

He said the finance secretary would head the committee tasked with giving recommendations within six months.

According to the budget documents, the provincial government`s employees and pensioners are 432,399 and around 175,000 respectively.

The estimated pay and pension allocations makes up 71 percent of the total expenditure for financial year 2015-16.

`Increase in salary and pension leaves lit tle room for the provincial exchequer to set aside adequate funds for operations, maintenance and development sector, say the documents.

The minister said the government owed Rs121 billion to various entities, including Rs116 billion to foreign organisations and Rs5 billion to the federal government.

He said the government had suggested 19 development projects to the federal government for inclusion in the Public Sector Development Programme under the Pakistan-China Economic Corridor.

`These proposed projects will cost $5.32 billion,` he said.

Muzaffar Said said majority of the proposed development projects were related to power and energy sector and that they would ensure generation of 17MW electricity and irrigation of 300,000 land in the province.

`Of the 19 proposed schemes, 10 are for energy and power, eight for irrigation and the remaining one is the establishment of Swat expressway,` he said.

The minister said the proposed projects` execution would greatly contribute to economic growth of the province and help generate massive employment opportunities.

He said over Rs42 billion had been allocated in development budget 201516 and that the money would be used through the recently elected representatives at ward and village and neighbourhood council levels.

According to Muzaffar Said, of the total development funds for districts in the next financial year, Rs13.1 billion is for the village and neighbourhood councils, Rs8.58 billion for tehsil councils and Rs8.58 for district councils, while Rs13 billion will be given to different departments after the completion of devolution process.

He said major part of the Rs174.88 billion Annual Development Programme funds would be utilised on 911 ongoing development schemes, while the rest would be spent on 614 new schemes.

APP adds: The minister said he was optimistic that the government would spend over 93 per cent of the current ADP money by the end of the financial year.

`Around 72 percent of the development programme for 2014-15 was utilised by June 15, 2015. The remaining will be spent by the end of the current financial year,` he said.

Muzaffar said all departments involved in planning and development of the province had been strictly directed to ensure use of ADP funds by over 93 per cent until the current fiscal ended.

`A special monitoring and evaluation cell has been established at the planning and development department to ensure transparency in the judicious use of funds,` he said.

The minister said the delay in the use of ADP allocations had been caused by the hiring of consultants for government projects.

He criticised the opposition parties for what he called falsely accusing his government of taking dictation about the province`s budget from PTI chief Imran Khan.