MUZAFFARABAD: Azad Jammu and Kashmir`s (AJK) Rs73.5 billion deñeit budgetforthe ñnancial year 2016-17 proposes Rs12bn for development expenditures, including a foreign aid of Rs500 million, and Rs61.5bn for recurring expenditures.

The budget session held four weeks before AJK goes to polls was presided over by speaker Sardar Ghulam Sadiq. Only 11 members of the ruling PPP, including Prime Minister Chaudhry Abdul Majeed, and two members each from the opposition Muslim Conference and the Muttahida Qaumi Movement attended the session. None of the 11 members of the main opposition PML-N turned up.

Presenting the budget in the Legislative Assembly on Friday, Finance Minister Chaudhry Latif Akbar said the government expected to generate Rs52.5bn revenue during the next financial year Rs17.8bn from AJK`s own sources, Rs1.2bn from Mangla Dam water use charges, Rs13bn from the AJK Council as 80pc share in direct taxes generated from the AJK territory and Rs20.5bn as share in federal taxes. The Rs9bn deficit would be picked by the federal government, he added.Of the Rs12bn development budget, which is 4.3pc more than that of the current year`s development programme, Rs6.78bn has been proposed for infrastructure (57pc), Rs2.45bn (20pc) for the productive sector, Rs2.29bn (19pc) for the social sector and Rs470m (4pc) for foreign-aided projects.

An amount of Rs4.4bn has been set aside for communications and works, Rs1.27bn for education, Rs1.24bn for power, Rs930m for physical planning and housing, Rs650m for local government and rural development, Rs650m for development authorities, Rs425m for forestry/fisheries/wildlife, Rs410m for health, Rs357m for agriculture/livestock, Rs249m for industries/minerals, Rs160m for tourism and Rs140m for sports.

The finance minister said 86pc funds of the Annual Development Programme (ADP) had been allocated for the ongoing projects, setting a target for completion of 125 projects during the next fiscal year, while 14pc funds had been proposed for 87 new projects.

Apart from the ADP, various federal ministries would separately spend over Rs80bn on different projects in AJK under the federal Public Sector Development Programme (PSDP), he said, adding that another Rs7bn was earmarked by the federal government for reconstruction in the earthquake-affected areas.

Chaudhry Latif said the government had revived the facility for servants to obtain interest-free advances for house building, cars or motorcycles by setting aside Rs1bn for thepurpose.

He said the government had also taken a number of steps to resolve issues of employees. All clerical cadres have been upgraded and redesignated on the pattern of Punjab, giving benefit to about 2,600 employees.

Time scale promotion facility has been approved for BS-5 to BS-16 employees and bag allowance of patwari increased from Rs50 to Rs1,000.

The finance minister assured the house thatanyincreasein salary and pensions of federal government employees would also be given to their counterparts in AJK from the same date and ratio.

He said the government had introduced a `revolutionary` education package under which 153 male and female primary schools, 123 middle schools, 33 high schools had been upgraded to middle, high and higher secondary schools, respectively.

Apart from that 47 male and female high schools have been upgraded to inter colleges and 19 inter colleges and hve higher secondary schools to degree colleges.

Five new model science colleges have been established in Kotli, Bhimber, Poonch, Hattian and Neelum. A total of 1,774 posts had been created for these institutions, the minister said.

He said the government had proposed a `nominal increase` in the existing taxes, stamps fee and education cess to increase income. There was also a proposal to impose rental property tax,he added.