Gilgit-Baltistan (G-B) Finance Minister Muhammad Ismael presented a comprehensive budget of over Rs140 billion for the fiscal year 2024-25. The budget session, chaired by G-B Assembly Speaker Nazir Ahmed, highlighted significant allocations for various sectors, aiming to bolster the region’s development and address key socio-economic challenges.
In his budget speech, Minister Ismael detailed the financial plan, proposing Rs86.6 billion for non-development expenditures. Out of this, Rs68 billion is expected as grants from the federal government. To support the region’s revenue generation, the G-B government has set a tax and local revenue collection target exceeding Rs6 billion. Notably, the budget deficit is estimated at Rs10.6 billion, a significant improvement from the previous year’s deficit of Rs17.3 billion.
The budget allocates Rs34.5 billion for development schemes, with Rs20 billion dedicated to ongoing projects under the Annual Development Plan. Additionally, the federal government has earmarked Rs9.5 billion in the Public Sector Development Programme (PSDP) for G-B, supplemented by Rs4 billion under the prime minister’s initiatives and Rs1 billion for the Foreign Exchange Component (FEC).
A substantial portion of the budget, Rs19.72 billion, is allocated for wheat procurement. The federal government will provide Rs15.82 billion as a subsidy to support this essential commodity, ensuring food security for the region’s population.
Education and healthcare receive significant attention in the new budget. The government plans to spend Rs252.7 million on hiring new teachers, enhancing the educational infrastructure. An allocation of Rs400 million is recommended for providing free medicines in hospitals, and Rs100 million is suggested for diet charges. To further support students, Rs350 million will be allocated for free textbooks in government schools, and Rs15 million for modern books in colleges.
To improve educational standards, substantial increases have been proposed for grants-in-aid to public schools and cadet colleges. The budget also allocates Rs100 million to promote modern education in the IT sector and establish an IT Board. The finance minister emphasized the importance of IT education, noting that the newly established IT department has developed special projects to meet modern demands. Approximately Rs131.6 million has been allocated to support these initiatives in the fiscal year 2024-25.
For electricity supply, production, and distribution, Rs750 million will be allocated, and Rs771 million will be dedicated to roads, bridges, and water supply projects under the Communication and Public Works Department. The budget also addresses past liabilities, allocating Rs423 million to settle verified dues of the water and power department from fiscal years 2013 to 2017.
To address natural disasters and mitigate damages, Rs1 billion is allocated. The agriculture, livestock, and fisheries department will receive Rs300 million for necessary reforms and new initiatives. Additionally, Rs90 million is earmarked for annual events under the tourism and culture department.
The budget also proposes significant administrative and social reforms. A 25% ad-hoc relief allowance is proposed for government employees in scales 1-16, and a 20% increase for employees in scales 17 and above. The minimum wage for contingent-paid staff will be set at Rs37,000 per month. The budget also includes measures to curb unnecessary expenditures, such as banning foreign trips for officials except in unavoidable circumstances, and prohibiting holding events at expensive venues, with certain exceptions.
The G-B Annual Development Programme (ADP) for the energy sector includes 52 ongoing schemes, with 74 megawatts (MW) of projects under construction. Nine projects totaling 21MW, including transmission and distribution lines, are expected to be completed by June 2024. Additionally, 11 projects totaling 17MW will be completed in the fiscal year 2024-25. Significant federal PSDP energy projects are also under construction, including the 16 MW Naltar project, expected to be completed by October this year, and other projects totaling 104 MW to be completed by December 2026.
The budget emphasizes environmental sustainability through the prime minister’s “Billion Tree Tsunami Programme,” which aims to plant millions of trees on barren and private lands and increase slope plantation along roads. Approximately Rs152.4 million has been allocated for these initiatives in the fiscal year 2024-25. The law department is allocated Rs192.6 million, ensuring continued legal support for the region’s development.
