The Khyber Pakhtunkhwa government on Wednesday unveiled Rs603 billion tax free budget carrying development outlay of Rs208 billion for the year 2017-18 with major focus on elimination of corruption and development of the social sector development besides announcing 10 per cent increase in the salaries and pension of the government employees after merger of 2010 ad-hoc relief.

Finance Minister Muzzafar said advocate presented the fifth budget of Pakistan Tehreek Insaf-led coalition government in the KP assembly Saturday afternoon with Speaker Asad Qaiser in the chair.

A special meeting of the Khyber Pakthunkhwa cabinet with Chief Minister Pervez Khattak in chair approved budget proposals for year 2017-18 on Wednesday.

The minimum wages have been enhanced from Rs14,000 to Rs15,000. The rise in salaries and pension would burden the provincial exchequer with Rs16.50 billion.

The province is expected to receive Rs247.876bn from the federal divisible pool, Rs107 million as one per cent share of the province in war against terror from the federal divisible pool and Rs49.806 billion as straight transfers from the federation.

The province will get Rs21.774bn under head of net hydel profit and its arrears from the federal government and Rs114.535 million as arrears of the net hydel profits.

The provincial own receipts have been pitched at Rs68.31 billion for 2017-18. The current expenditure has been pitched at Rs388 billion to meet the provincial expenditure to be incurred next year, he said.

The finance minister informed the house that the provincial government will generate Rs126 billion from its own sources for the development programme whereas Rs82 billion would be met through foreign donor agencies for feeding the development programmes.

The finance minister said it is a balanced budget as the receipts and expenditures have been pitched at Rs603 billion for the year 2017-18. The province will get 11 per cent more in next year from the federal divisible pool.

The finance minister informed that Rs3.63 billion would be generated from the hydel power stations setup by the KP government in 2017-18 besides the province will obtain Rs45.21 billion from the tax and non tax receipts during next fiscal, which also included Rs12.65 billion from service on the general sales tax.

The province will secure Rs24.68 billion from the oil and gas royalty deposits of the southern districts which is 43 per cent more than the outgoing fiscal.

The finance minister announced that the government has proposed to exempt government employees from Grade-1 to Grade-5 from house rent deduction while rate of the daily allowance was being increased to 60 per cent.

The allowance of the Urdali is increased from Rs12,000 to Rs14,000.

Similarly expenditures incurred on shifting and burial rites of the dead body were being increased to Rs4800 and Rs15000 respectively.