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KP: tax collection performance
In fiscal year 2013-14, the coalition government of Khyber Pakhtunkhwa (KP) comprising Tehreek-e-Insaf (PTI) and Jamaat-e-Islami (JI) showed total tax receipts of Rs 12.638 billion against the revised target of Rs 10.287 billion-the only province that exceeded the revised target. However, the main reliance remained on transfers from the Federal Government of Rs 235 billion confirming lack of real efforts on the part of KP government to harness its real tax potential-tax receipts were just 21.17% of provincial revenue receipts and 5.37% of total revenue receipts. Revised estimate of the overall tax receipts was Rs 10.28 billion, against the projected amount of Rs 16.9 billion, short by Rs 6.4 billion.
For the current fiscal year (2014-15) the KP government has set an ambitious target of raising its tax receipts by 89%. The government, while setting the tax target of Rs 19.4 billion in the budget, explained neither the strategy nor the methodology for its achievement. During the first six months of the current fiscal year, the government has been lagging behind in all areas of fiscal governance as is the case with all other provinces and the federal government.
The KP government, while presenting budgets for fiscal years 2013-14 and 2014-15, engaged more in rhetoric than pragmatism. Though the government tried its best to elaborate its budgetary approach comprehensively and sincerely, but failed to correlate it with a workable strategy or plan to fulfil people's needs. There exists three detailed documents-White Paper, Budget Strategy Paper and Putting People First (Citizens' Budget)-at the official website of KP government (Government of Khyber Pakhtunkhwa, Finance Department - Government of Khyber Pakhtunkhwa, Finance Department However, mere documentation does not mean or ensure that whatever aspired would actually be achieved or the aims and objectives have been rationally determined. Professional input is missing in these documents and reflects more of a bureaucratic exercise behind closed doors rather than preparing a workable document with the active participation of stakeholders.
This write-up will show that like all other provinces and capital territory managed by the Federal Government, the KP government paid little attention to collect agricultural income tax from the absentee landlords and property tax from the owners of palatial houses. This is the weakest area of fiscal governance of federation and federating units in Pakistan alike. Another issue is that of lack of transparency in preparing budgets both at national and provincial levels as revenue targets are inflated while expenditure estimates are understated. "The practice may generate political capital in the short run for the political party in power, but it renders the financial management ineffective. The increase in revenue expenditure, in an artificially bloated budget, amplifies risks of bigger cuts in the development budget"-Bloated, opaque provincial budgets by Afshan Subohi, Dawn, June 23, 2014.
On the one hand, the KP government has shown intention to increase non-tax revenues by 41%, from Rs 6.6 to Rs 9.3 billion and on the other, no structural reforms have yet been undertaken to improve efficiency of various departments. For example, Khyber Pakhtunkhwa Revenue Authority (KPRA), established in 2013, is still not fully operative and has failed to frame rules since its inception. On its website (KPRA - Taxpayer Facilitation Portal for the last two years message reads: "This page is currently under construction: please visit again soon"! The same is true for traditional Excise and Taxation Department (Excise & Taxation Department, Khyber Pakhtunkhwa, Pakistan that lacks automation and transparency, exposing claims made by KP government of achieving wonders.
It is an undeniable fact that KPRA and Excise & Taxation Department are working at sub-optimal level. Like other government departments, these have failed to deliver. Their service quality is poor and the sufferers are the ordinary citizens. The need of merging them both for better collection and avoiding duplicate expenses has also yet not been realised by the government. Consequently, the KP government is heavily dependent on funds from the Federal Government and there is no will to tax the rich and mighty in the province as well as to collect the existing taxes diligently and plug loopholes and leakages.
The main reliance of KP government is on indirect taxes as is the case with the Federal Board of Revenue (FBR) and other provinces. The main sources of tax revenue in KP are:
1. Sales Tax on Services
2. Agricultural Income Tax
3. Urban Immovable Property Tax
4. Motor Vehicle Registration Tax
5. Motor Vehicle Dealers Tax
6. Professional Tax
7. Hotel Tax
8. Provincial Excise Duty
9. Tobacco Development Cess
The above list shows that except for agricultural income tax, which is also not collected as per Constitution and is being charged on per acreage basis rather than on net income, all taxes are indirect and are mostly regressive in nature as they take away larger portion of lower income groups. Total collection under the head agricultural income for the fiscal year 2013-14 was just Rs 24 million.
After 18th Constitutional Amendment, the right to levy progressive taxes like wealth tax on immovable property, inheritance and gift tax is with the provinces but the present KP government, in its two budgets, has not yet imposed any levy for taxing the rich for the benefit of the poor-though both the coalition parties keep on making tall claims of turning Pakistan into a true Islamic welfare State. Had it been done, sufficient funds could have been generated to rapidly develop the province and provide the people with all universal entitlements including free education guaranteed under Article 25A of the Constitution, for which even a State lottery can be launched by the provincial government after 18th Constitutional Amendment. What is more disturbing is the fact that no progressive tax like wealth tax and capital gain tax on immovable property was levied on the rich people residing in KP. This could have yielded substantial revenues. The story of revenue collection is pathetic and fiscal management of KP is no different from the other governments as the Tables below reveal.
Development expenditure in 2013-14 in KP was Rs 2 billion less than the projected amount of Rs 83 billion and there are still many issues of quality spending and wastage. In the current fiscal year as compared to last year, development spending is higher by 23%, though capacity issues are still unresolved and leakages have not been plugged. People are not getting the true benefit of such spending and even fulfilment of fundamental right of free and compulsory education under Article 25A is a distant dream, though the head of PTI keeps on saying that uniform education for all is fundamental to resolving the many ills faced by Pakistan.
KP government, like all other provinces and the federal government, has failed to provide free education guaranteed under Article 25A of the Constitution. The governments-both federal and provincial-are not only suffering on account of suboptimal taxation but also inadequate allocation and poor social spendings (schools, health, emergency services). This makes the State dependent on NGOs-both beneficent and otherwise-to fill the gap, thereby solidifying their integration.
(The writers, partners in law firm, Huzaima & Ikram, are Adjunct Faculty at Lahore University of Management Sciences)
====================================================================================================
TABLE I: GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2014-2015
====================================================================================================
(Rs In Million)
====================================================================================================
REVENUES Budget EXPENDITURE Budget
Estimates Estimates
2014-15 2014-15
====================================================================================================
A-General Revenue Receipts A-Current Revenue Expenditure
----------------------------------------------------------------------------------------------------
Federal Tax Assignment 227,121.193 General Public Service 73,280.963
1% of Divisible Pool for War on Terror 27,290.233 Civil Defence 62.280
Straight Transfers 29,263.451 Public Order and Safety Affairs 35,428.108
GST on Services (Provincial) 12,000.000 Economic Affairs 19,340.205
Provincial Own Receipts (Tax & Non Tax) 13,930.777 Environnemental Protection 37.048
Net Profit from Hydel Power Generation 12,000.000 Housing and Community Amenities 4,770.370
Likely Availability of NHP Arrears 32,272.346 Health (Excluding Health Education) 20,985.728
Hydel Power Own Generation 2,850.000 Recreation, Culture and Religion 818.078
Population Welfare Programme 477.000 Education Affairs and Services 87,632.332
(Including Health Education etc)
Social Protection 7,644.888
----------------------------------------------------------------------------------------------------
Total-A 357,205.000 Total-A 250,000.000
----------------------------------------------------------------------------------------------------
B-General Capital Receipts B-Current Capital Expenditure
Recoveries of Loans & Advances 250.000 Repayment of Loans 14,710.000
Loans and Advances 290.000
----------------------------------------------------------------------------------------------------
Total-B 250.000 Total-B 15,000.000
----------------------------------------------------------------------------------------------------
C-Development Receipts C-Development Expenditure
----------------------------------------------------------------------------------------------------
Operational Shortfall 12,000.000 ADP (Provincial) 98,378.000
ADP (Districts) 1,672.000
Foreign Projects Assistance 35,350.000 Foreign Projects Assistance 39,755.000
----------------------------------------------------------------------------------------------------
Total-C 47,350.000 Total-C 139,805.000
----------------------------------------------------------------------------------------------------
Total Revenues (Account-I) 404,805.000 Total Expenditure (Account-I) 404,805.000
Receipts and Recoveries (Account-II) 101,513.719 Capital Expenditure
----------------------------------------------------------------------------------------------------
(Account-II) 101,513.719
====================================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
=================================================================================
TABLE II: KP BUDGET 2014-15 AT A GLANCE
=================================================================================
(Rs In Million)
=================================================================================
Description Budget Revised Budget
Estimates Estimates Estimates
2013-14 2013-14 2014-15
=================================================================================
A - GENERAL REVENUE BUDGET
---------------------------------------------------------------------------------
General Revenue Receipts 297,986.109 294,721.386 357,205.000
Revenue Expenditure 211,000.000 222,000.000 250,000.000
Net Revenue Account (Deficit/Surplus) 86,986.109 72,721.386 107,205.000
---------------------------------------------------------------------------------
B - CURRENT CAPITAL BUDGET
---------------------------------------------------------------------------------
General Capital Receipts 250.000 736.552 250.000
Current Capital Expenditure 15,000.000 15,000.000 15,000.000
Net Capital Account (Deficit/Surplus) (14,750.000) (14,263.448) (14,750.000)
---------------------------------------------------------------------------------
C-Surplus for Development (A+B) 72,236.109 58,457.938 92,455.000
---------------------------------------------------------------------------------
D - ADP FINANCING ITEMS
---------------------------------------------------------------------------------
PSDP - 2,213.577 -
Operational Shortfall 10,763.891 14,704.002 12,000.000
Foreign Project Assistance 35,000.000 21,060.123 35,350.000
Foreign Grants (PDMA+Others) - 8,411.976 -
Total ADP Financing Items 45,763.891 46,389.678 47,350.000
Resources for Development 118,000.000 104,847.616 139,805.000
Development Expenditure 118,000.000 104,847.616 139,805.000
---------------------------------------------------------------------------------
Total Resources (A+B+C+D) 344,000.000 341,847.616 404,805.000
---------------------------------------------------------------------------------
Total Expenditure (A+B+D) 344,000.000 341,847.616 404,805.000
---------------------------------------------------------------------------------
Net (Deficit/Surplus) (Account-I) - - -
General Capital Expenditure (Account-II) 98,000.000 45,821.320 101,513.719
Less Receipts and Recoveries (98,000.000) (45,821.320) (101,513.719)
Net (Deficit/Surplus) (Account-II) - - -
=================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
====================================================================================
TABLE III: GENERAL REVENUE RECEIPTS
====================================================================================
Rs in Million
====================================================================================
Object Description Budget Revised Budget
Code Estimates Estimates Estimates
2013-14 2013-14 2014-15
====================================================================================
1 FEDERAL TRANSFERS 249,588.590 235,047.717 283,674.877
------------------------------------------------------------------------------------
B Tax Revenue 223,285.613 207,318.077 256,854.566
B01 Direct Taxes 86,673.102 80,168.829 106,389.193
B011 Taxes on Income 86,673.102 80,114.377 106,326.527
B018 Capital Value Tax on - 54.452 62.666
Immovable Property
B02 Indirect Taxes 136,612.511 127,149.248 150,465.373
B020-22 Customs 24,826.577 21,682.923 25,318.678
B023 Sales Tax 96,182.496 92,242.822 107,425.797
B024 Federal Excise 14,410.674 11,640.803 15,277.758
B025 Federal Excise on Natural Gas 1,192.764 1,582.700 2,443.140
C Non Tax Revenue 26,302.977 27,729.640 26,820.311
C03 Miscellaneous Receipts 26,302.977 27,729.640 26,820.311
C039 Development Surcharges 26,302.977 27,729.640 26,820.311
& Royalties
------------------------------------------------------------------------------------
2 PROVINCIAL RECEIPTS 48,397.519 59,673.669 73,530.123
------------------------------------------------------------------------------------
B Tax Revenue 10,287.588 12,637.810 19,452.809
B01 Direct Taxes 1,696.083 2,005.910 2,311.809
B011 Taxes on Income 22.000 24.000 79.000
B013 Property Tax 187.910 196.910 222.809
B014 Land Revenue 1,111.173 1,300.000 1,430.000
B016 Taxes on Professional 165.000 165.000 230.000
------------------------------------------------------------------------------------
Trades and Callings
------------------------------------------------------------------------------------
B017 Urban Capital Value Tax 210.000 320.000 350.000
B02 Indirect Taxes 8,591.505 10,631.900 17,141.000
B023 Sales Tax 6,000.000 8,000.000 12,000.000
B026 Provincial Excise 30.000 30.000 33.000
B027 Stamp Duty 600.000 670.000 740.000
B028 Motor Vehicles 1,072.000 1,075.000 1,206.000
B030 Other Indirect Taxes 889.505 856.900 3,162.000
====================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
====================================================================================
TABLE IV: DETAILS OF GENERAL REVENUE RECEIPTS
====================================================================================
(RS. IN MILLION)
====================================================================================
Object Description Budget Revised Budget
Code Estimates Estimates Estimates
2013-14 2013-14 2014-15
====================================================================================
PROVINCIAL RECEIPTS 48,397.519 59,673.669 73,530.123
------------------------------------------------------------------------------------
B TAX RECEIPTS 10,287.588 12,637.810 19,452.809
------------------------------------------------------------------------------------
B01 DIRECT TAXES 1,696.083 2,005.910 2,311.809
B011 Tax on income 22.000 24.000 79.000
B01171-80 Tax from Agriculture 22.000 24.000 79.000
B01175 Tax on Agricultural Income in 22.000 24.000 79.000
the Khyber Pakhtunkhwa
B013 Property Tax 187.910 196.910 222.809
B01301-10 Urban immovable property tax 107.910 107.910 122.809
B01301 Ordinary Collection 495.000 495.000 563.342
B01302 Share of net proceeds assigned (387.090) (387.090) (440.533)
to Districts/TMAs etc
B01311-20 Transfer of property tax 80.000 89.000 100.000
B01311 Fees for Registering Documents 79.641 88.601 99.551
B01312 Copying Registered Documents 0.241 0.268 0.301
B01320 Others 0.118 0.131 0.148
B014 Land Revenue 1,111.173 1,300.000 1,430.000
B01401-25 Land revenue 1,111.173 1,300.000 1,430.000
B01401 Ordinary Collection 0.506 0.592 0.651
B01403 Malkana 0.022 0.026 0.028
B01404 Sale of Government Estates 85.740 100.307 110.339
B01407 Rent of Agriculture Land
for single yea 1.060 1.240 1.364
B01408 Rent from Shops 0.483 0.565 0.622
B01413 Fee for consolidation of Holdings 0.006 0.007 0.008
B01417 Mutation fee 898.280 1,050.898 1,155.997
B01418 Copying & Inspection Fees 0.421 0.493 0.542
of Patwaries Record
B01421 Recoveries of overpayments 0.557 0.652 0.717
B01424 Local Rates on Lands interest 2.107 2.503 2.742
assessable to Land Revenue
B01425 Land revenue-Others 121.991 142.717 156.990
B016 Tax on Profession,
Trades and Callings 165.000 165.000 230.000
B01601 Ordinary Collection 165.000 165.000 230.000
B017 Capital Value Tax on
immoveable Property 210.000 320.000 350.000
B01701 Urban 210.000 320.000
====================================================================================
======================================================
TABLE V: OVERVIEW OF KP BUDGET (2012-13 & 2013-14)
======================================================
(Rs Billion)
======================================================
Items Fiscal Years
2012-13 RE 2013-14 BE
======================================================
A. Tax Revenue 192.3 234.3
Provincial Taxes 8.1 10.3
GST on Services 4.3 1.9
(transferred by Federal govt)
Share in Federal Taxes 179.9 222.1
B. Non-Tax Revenue 32.1 40.1
C. All Others 26.1 24.1
Total Revenues (A+B+C) 250.5 298.5
a) Current Expenditure 195.0 211.0
b) Development Expenditure 88.1 118.0
Total Exp (a+b) 283.1 329.0
In fiscal year 2013-14, the coalition government of Khyber Pakhtunkhwa (KP) comprising Tehreek-e-Insaf (PTI) and Jamaat-e-Islami (JI) showed total tax receipts of Rs 12.638 billion against the revised target of Rs 10.287 billion-the only province that exceeded the revised target. However, the main reliance remained on transfers from the Federal Government of Rs 235 billion confirming lack of real efforts on the part of KP government to harness its real tax potential-tax receipts were just 21.17% of provincial revenue receipts and 5.37% of total revenue receipts. Revised estimate of the overall tax receipts was Rs 10.28 billion, against the projected amount of Rs 16.9 billion, short by Rs 6.4 billion.
For the current fiscal year (2014-15) the KP government has set an ambitious target of raising its tax receipts by 89%. The government, while setting the tax target of Rs 19.4 billion in the budget, explained neither the strategy nor the methodology for its achievement. During the first six months of the current fiscal year, the government has been lagging behind in all areas of fiscal governance as is the case with all other provinces and the federal government.
The KP government, while presenting budgets for fiscal years 2013-14 and 2014-15, engaged more in rhetoric than pragmatism. Though the government tried its best to elaborate its budgetary approach comprehensively and sincerely, but failed to correlate it with a workable strategy or plan to fulfil people's needs. There exists three detailed documents-White Paper, Budget Strategy Paper and Putting People First (Citizens' Budget)-at the official website of KP government (Government of Khyber Pakhtunkhwa, Finance Department - Government of Khyber Pakhtunkhwa, Finance Department However, mere documentation does not mean or ensure that whatever aspired would actually be achieved or the aims and objectives have been rationally determined. Professional input is missing in these documents and reflects more of a bureaucratic exercise behind closed doors rather than preparing a workable document with the active participation of stakeholders.
This write-up will show that like all other provinces and capital territory managed by the Federal Government, the KP government paid little attention to collect agricultural income tax from the absentee landlords and property tax from the owners of palatial houses. This is the weakest area of fiscal governance of federation and federating units in Pakistan alike. Another issue is that of lack of transparency in preparing budgets both at national and provincial levels as revenue targets are inflated while expenditure estimates are understated. "The practice may generate political capital in the short run for the political party in power, but it renders the financial management ineffective. The increase in revenue expenditure, in an artificially bloated budget, amplifies risks of bigger cuts in the development budget"-Bloated, opaque provincial budgets by Afshan Subohi, Dawn, June 23, 2014.
On the one hand, the KP government has shown intention to increase non-tax revenues by 41%, from Rs 6.6 to Rs 9.3 billion and on the other, no structural reforms have yet been undertaken to improve efficiency of various departments. For example, Khyber Pakhtunkhwa Revenue Authority (KPRA), established in 2013, is still not fully operative and has failed to frame rules since its inception. On its website (KPRA - Taxpayer Facilitation Portal for the last two years message reads: "This page is currently under construction: please visit again soon"! The same is true for traditional Excise and Taxation Department (Excise & Taxation Department, Khyber Pakhtunkhwa, Pakistan that lacks automation and transparency, exposing claims made by KP government of achieving wonders.
It is an undeniable fact that KPRA and Excise & Taxation Department are working at sub-optimal level. Like other government departments, these have failed to deliver. Their service quality is poor and the sufferers are the ordinary citizens. The need of merging them both for better collection and avoiding duplicate expenses has also yet not been realised by the government. Consequently, the KP government is heavily dependent on funds from the Federal Government and there is no will to tax the rich and mighty in the province as well as to collect the existing taxes diligently and plug loopholes and leakages.
The main reliance of KP government is on indirect taxes as is the case with the Federal Board of Revenue (FBR) and other provinces. The main sources of tax revenue in KP are:
1. Sales Tax on Services
2. Agricultural Income Tax
3. Urban Immovable Property Tax
4. Motor Vehicle Registration Tax
5. Motor Vehicle Dealers Tax
6. Professional Tax
7. Hotel Tax
8. Provincial Excise Duty
9. Tobacco Development Cess
The above list shows that except for agricultural income tax, which is also not collected as per Constitution and is being charged on per acreage basis rather than on net income, all taxes are indirect and are mostly regressive in nature as they take away larger portion of lower income groups. Total collection under the head agricultural income for the fiscal year 2013-14 was just Rs 24 million.
After 18th Constitutional Amendment, the right to levy progressive taxes like wealth tax on immovable property, inheritance and gift tax is with the provinces but the present KP government, in its two budgets, has not yet imposed any levy for taxing the rich for the benefit of the poor-though both the coalition parties keep on making tall claims of turning Pakistan into a true Islamic welfare State. Had it been done, sufficient funds could have been generated to rapidly develop the province and provide the people with all universal entitlements including free education guaranteed under Article 25A of the Constitution, for which even a State lottery can be launched by the provincial government after 18th Constitutional Amendment. What is more disturbing is the fact that no progressive tax like wealth tax and capital gain tax on immovable property was levied on the rich people residing in KP. This could have yielded substantial revenues. The story of revenue collection is pathetic and fiscal management of KP is no different from the other governments as the Tables below reveal.
Development expenditure in 2013-14 in KP was Rs 2 billion less than the projected amount of Rs 83 billion and there are still many issues of quality spending and wastage. In the current fiscal year as compared to last year, development spending is higher by 23%, though capacity issues are still unresolved and leakages have not been plugged. People are not getting the true benefit of such spending and even fulfilment of fundamental right of free and compulsory education under Article 25A is a distant dream, though the head of PTI keeps on saying that uniform education for all is fundamental to resolving the many ills faced by Pakistan.
KP government, like all other provinces and the federal government, has failed to provide free education guaranteed under Article 25A of the Constitution. The governments-both federal and provincial-are not only suffering on account of suboptimal taxation but also inadequate allocation and poor social spendings (schools, health, emergency services). This makes the State dependent on NGOs-both beneficent and otherwise-to fill the gap, thereby solidifying their integration.
(The writers, partners in law firm, Huzaima & Ikram, are Adjunct Faculty at Lahore University of Management Sciences)
====================================================================================================
TABLE I: GENERAL ABSTRACT OF REVENUES AND EXPENDITURE 2014-2015
====================================================================================================
(Rs In Million)
====================================================================================================
REVENUES Budget EXPENDITURE Budget
Estimates Estimates
2014-15 2014-15
====================================================================================================
A-General Revenue Receipts A-Current Revenue Expenditure
----------------------------------------------------------------------------------------------------
Federal Tax Assignment 227,121.193 General Public Service 73,280.963
1% of Divisible Pool for War on Terror 27,290.233 Civil Defence 62.280
Straight Transfers 29,263.451 Public Order and Safety Affairs 35,428.108
GST on Services (Provincial) 12,000.000 Economic Affairs 19,340.205
Provincial Own Receipts (Tax & Non Tax) 13,930.777 Environnemental Protection 37.048
Net Profit from Hydel Power Generation 12,000.000 Housing and Community Amenities 4,770.370
Likely Availability of NHP Arrears 32,272.346 Health (Excluding Health Education) 20,985.728
Hydel Power Own Generation 2,850.000 Recreation, Culture and Religion 818.078
Population Welfare Programme 477.000 Education Affairs and Services 87,632.332
(Including Health Education etc)
Social Protection 7,644.888
----------------------------------------------------------------------------------------------------
Total-A 357,205.000 Total-A 250,000.000
----------------------------------------------------------------------------------------------------
B-General Capital Receipts B-Current Capital Expenditure
Recoveries of Loans & Advances 250.000 Repayment of Loans 14,710.000
Loans and Advances 290.000
----------------------------------------------------------------------------------------------------
Total-B 250.000 Total-B 15,000.000
----------------------------------------------------------------------------------------------------
C-Development Receipts C-Development Expenditure
----------------------------------------------------------------------------------------------------
Operational Shortfall 12,000.000 ADP (Provincial) 98,378.000
ADP (Districts) 1,672.000
Foreign Projects Assistance 35,350.000 Foreign Projects Assistance 39,755.000
----------------------------------------------------------------------------------------------------
Total-C 47,350.000 Total-C 139,805.000
----------------------------------------------------------------------------------------------------
Total Revenues (Account-I) 404,805.000 Total Expenditure (Account-I) 404,805.000
Receipts and Recoveries (Account-II) 101,513.719 Capital Expenditure
----------------------------------------------------------------------------------------------------
(Account-II) 101,513.719
====================================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
=================================================================================
TABLE II: KP BUDGET 2014-15 AT A GLANCE
=================================================================================
(Rs In Million)
=================================================================================
Description Budget Revised Budget
Estimates Estimates Estimates
2013-14 2013-14 2014-15
=================================================================================
A - GENERAL REVENUE BUDGET
---------------------------------------------------------------------------------
General Revenue Receipts 297,986.109 294,721.386 357,205.000
Revenue Expenditure 211,000.000 222,000.000 250,000.000
Net Revenue Account (Deficit/Surplus) 86,986.109 72,721.386 107,205.000
---------------------------------------------------------------------------------
B - CURRENT CAPITAL BUDGET
---------------------------------------------------------------------------------
General Capital Receipts 250.000 736.552 250.000
Current Capital Expenditure 15,000.000 15,000.000 15,000.000
Net Capital Account (Deficit/Surplus) (14,750.000) (14,263.448) (14,750.000)
---------------------------------------------------------------------------------
C-Surplus for Development (A+B) 72,236.109 58,457.938 92,455.000
---------------------------------------------------------------------------------
D - ADP FINANCING ITEMS
---------------------------------------------------------------------------------
PSDP - 2,213.577 -
Operational Shortfall 10,763.891 14,704.002 12,000.000
Foreign Project Assistance 35,000.000 21,060.123 35,350.000
Foreign Grants (PDMA+Others) - 8,411.976 -
Total ADP Financing Items 45,763.891 46,389.678 47,350.000
Resources for Development 118,000.000 104,847.616 139,805.000
Development Expenditure 118,000.000 104,847.616 139,805.000
---------------------------------------------------------------------------------
Total Resources (A+B+C+D) 344,000.000 341,847.616 404,805.000
---------------------------------------------------------------------------------
Total Expenditure (A+B+D) 344,000.000 341,847.616 404,805.000
---------------------------------------------------------------------------------
Net (Deficit/Surplus) (Account-I) - - -
General Capital Expenditure (Account-II) 98,000.000 45,821.320 101,513.719
Less Receipts and Recoveries (98,000.000) (45,821.320) (101,513.719)
Net (Deficit/Surplus) (Account-II) - - -
=================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
====================================================================================
TABLE III: GENERAL REVENUE RECEIPTS
====================================================================================
Rs in Million
====================================================================================
Object Description Budget Revised Budget
Code Estimates Estimates Estimates
2013-14 2013-14 2014-15
====================================================================================
1 FEDERAL TRANSFERS 249,588.590 235,047.717 283,674.877
------------------------------------------------------------------------------------
B Tax Revenue 223,285.613 207,318.077 256,854.566
B01 Direct Taxes 86,673.102 80,168.829 106,389.193
B011 Taxes on Income 86,673.102 80,114.377 106,326.527
B018 Capital Value Tax on - 54.452 62.666
Immovable Property
B02 Indirect Taxes 136,612.511 127,149.248 150,465.373
B020-22 Customs 24,826.577 21,682.923 25,318.678
B023 Sales Tax 96,182.496 92,242.822 107,425.797
B024 Federal Excise 14,410.674 11,640.803 15,277.758
B025 Federal Excise on Natural Gas 1,192.764 1,582.700 2,443.140
C Non Tax Revenue 26,302.977 27,729.640 26,820.311
C03 Miscellaneous Receipts 26,302.977 27,729.640 26,820.311
C039 Development Surcharges 26,302.977 27,729.640 26,820.311
& Royalties
------------------------------------------------------------------------------------
2 PROVINCIAL RECEIPTS 48,397.519 59,673.669 73,530.123
------------------------------------------------------------------------------------
B Tax Revenue 10,287.588 12,637.810 19,452.809
B01 Direct Taxes 1,696.083 2,005.910 2,311.809
B011 Taxes on Income 22.000 24.000 79.000
B013 Property Tax 187.910 196.910 222.809
B014 Land Revenue 1,111.173 1,300.000 1,430.000
B016 Taxes on Professional 165.000 165.000 230.000
------------------------------------------------------------------------------------
Trades and Callings
------------------------------------------------------------------------------------
B017 Urban Capital Value Tax 210.000 320.000 350.000
B02 Indirect Taxes 8,591.505 10,631.900 17,141.000
B023 Sales Tax 6,000.000 8,000.000 12,000.000
B026 Provincial Excise 30.000 30.000 33.000
B027 Stamp Duty 600.000 670.000 740.000
B028 Motor Vehicles 1,072.000 1,075.000 1,206.000
B030 Other Indirect Taxes 889.505 856.900 3,162.000
====================================================================================
Source: Annual Budget Statement 2014-15 by Finance Department, KP Government
====================================================================================
TABLE IV: DETAILS OF GENERAL REVENUE RECEIPTS
====================================================================================
(RS. IN MILLION)
====================================================================================
Object Description Budget Revised Budget
Code Estimates Estimates Estimates
2013-14 2013-14 2014-15
====================================================================================
PROVINCIAL RECEIPTS 48,397.519 59,673.669 73,530.123
------------------------------------------------------------------------------------
B TAX RECEIPTS 10,287.588 12,637.810 19,452.809
------------------------------------------------------------------------------------
B01 DIRECT TAXES 1,696.083 2,005.910 2,311.809
B011 Tax on income 22.000 24.000 79.000
B01171-80 Tax from Agriculture 22.000 24.000 79.000
B01175 Tax on Agricultural Income in 22.000 24.000 79.000
the Khyber Pakhtunkhwa
B013 Property Tax 187.910 196.910 222.809
B01301-10 Urban immovable property tax 107.910 107.910 122.809
B01301 Ordinary Collection 495.000 495.000 563.342
B01302 Share of net proceeds assigned (387.090) (387.090) (440.533)
to Districts/TMAs etc
B01311-20 Transfer of property tax 80.000 89.000 100.000
B01311 Fees for Registering Documents 79.641 88.601 99.551
B01312 Copying Registered Documents 0.241 0.268 0.301
B01320 Others 0.118 0.131 0.148
B014 Land Revenue 1,111.173 1,300.000 1,430.000
B01401-25 Land revenue 1,111.173 1,300.000 1,430.000
B01401 Ordinary Collection 0.506 0.592 0.651
B01403 Malkana 0.022 0.026 0.028
B01404 Sale of Government Estates 85.740 100.307 110.339
B01407 Rent of Agriculture Land
for single yea 1.060 1.240 1.364
B01408 Rent from Shops 0.483 0.565 0.622
B01413 Fee for consolidation of Holdings 0.006 0.007 0.008
B01417 Mutation fee 898.280 1,050.898 1,155.997
B01418 Copying & Inspection Fees 0.421 0.493 0.542
of Patwaries Record
B01421 Recoveries of overpayments 0.557 0.652 0.717
B01424 Local Rates on Lands interest 2.107 2.503 2.742
assessable to Land Revenue
B01425 Land revenue-Others 121.991 142.717 156.990
B016 Tax on Profession,
Trades and Callings 165.000 165.000 230.000
B01601 Ordinary Collection 165.000 165.000 230.000
B017 Capital Value Tax on
immoveable Property 210.000 320.000 350.000
B01701 Urban 210.000 320.000
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======================================================
TABLE V: OVERVIEW OF KP BUDGET (2012-13 & 2013-14)
======================================================
(Rs Billion)
======================================================
Items Fiscal Years
2012-13 RE 2013-14 BE
======================================================
A. Tax Revenue 192.3 234.3
Provincial Taxes 8.1 10.3
GST on Services 4.3 1.9
(transferred by Federal govt)
Share in Federal Taxes 179.9 222.1
B. Non-Tax Revenue 32.1 40.1
C. All Others 26.1 24.1
Total Revenues (A+B+C) 250.5 298.5
a) Current Expenditure 195.0 211.0
b) Development Expenditure 88.1 118.0
Total Exp (a+b) 283.1 329.0
