Azad Jammu and Kashmir government has unveiled budget for fiscal year 2019-20 with a total volume of Rs121.56 billion. According to details, Rs24.56 billion has been allocated for development outlay which is 11% higher compared to current fiscal year. Salaries of government employees have been increased at the rate of 10% for grade 1-16 and 5% for grade 17-20. Overall income for next fiscal year has been estimated as Rs97 billion including Rs18,400 million in the head of income tax collection, Rs7,200 million in the head of other taxes, Rs54,850 million as share from the federal taxes collected by FBR, Rs18,100 in the head of local taxes, Rs600 million in the head of water use charges being received from federal government and Rs450 million as capital receipts (loans and advances) and after adjustment of Rs2,600 million overdraft of state Bank, Rs97 billion has been allocated for current expenditures. The minister said federal government had allocated Rs2.76 billion in the public sector development programme for the development projects of Azad Jammu and Kashmir implemented by Kashmir council and Mansehra-Muzaffarabad to Mangla expressway project worth Rs142 billion had also been included in federal PSDP.
As many as Rs3 billion allocated for rehabilitation of people affected by unprovoked Indian forces firing near Line of Control and Rs5 billion for reconstruction under Erra was also the part of federal PSDP.
It seems that government has presented a balanced budget with low deficit in current circumstances but figures suggest that the non-development expenditures of the government are very high. Most of the budget is being consumed on services sector. Government needs to take steps to increase its revenue, enhance local production and should promote local industries in tourism, mineral, forestry, hydel, livestock, agriculture and other sectors. AJK is land of abundant resources and great potential is available for the investment in these sectors. Federal government has recently removed restrictions on the entry of foreign tourists but the infrastructures and facilities are insufficient to fully tap this potential. The government needs to enhance spending on infrastructure, education and health sectors. The government should encourage and facilities private sectors to create and promote local industries. It will be helpful in increasing local revenue and end unemployment and poverty in the state. At the same time government should allocate funds to support downtrodden segment of the society. The government needs to strictly control leakages and wastage of funds during the implementation of public projects.
