THE PTI-led government has presented its first budget in KP with an outlay of Rs344bn. Putting together a budget within weeks of having taken over is a tough task for an inexperienced party. Add the fact that KP faces unprecedented challenges and undoubtedly PTI has to be given some leeway. Nonetheless, some conclusions are unavoidable. The PTI-JI combine have not shown an inclination for much change in their first budget. There is little to indicate that the provincial government has taken any radical measures that mark a departure from the previous ANP government. For example, the revenues are based on the same inflows as before. The only positive step on this side is to set up the Khyber Pakhtunkhwa Revenue Authority to collect sales tax on services and haul in Rs6bn. Similar authorities have already been set up in Sindh and Punjab. By following suit the KP government has taken a step in the right direction.
On the expenditure side, too, there are few major changes. The reduction in the expenses of the governor and chief minister are not indicative of any structural economic reforms. The generous allocations to social sectors such as health and education are commendable but are they a departure from the past? Take education which includes the non-development expenditure of Rs66.6bn. But the amount for education in the Annual Development Programme is Rs13.83bn, up from the Rs12.18bn that the ANP government had allocated in 2012-2013. This is an increase of a little over one and a half billion rupees. In comparison, the ANP government had increased the education allocation from Rs10.65bn to Rs12.18bn in 2011-2012. Judgement will have to be withheld on the government’s promise to ensure a 7pc growth rate in the next three years. Because regardless of what PTI can do, in a province afflicted by militancy, growth will remain a far away dream. Without security of life and business, intentions and corruption-free governance cannot deliver. The KP government would do well to remember this.