Provincial budget: ‘Growth rates for provinces not being released’

Punjab finance minister rues lack of focus on part of federal government

LAHORE: The Pakistan Bureau of Statistics (PBS) is not helping the provinces’ cause by failing to release their growth rates, said Punjab Finance Minister Dr Ayesha Ghous Pasha on Tuesday, stressing that withholding such information conveys the lack of focus on part of the federal government.

During an interactive session with the Lahore Economic Journalists Association, she said that provincial governments were dependent on resources received from the federal government and the budget needed to be planned with such provisions in mind.

“We have discouraged this trend and reduced the percentage of block allocations in the previous budget which would further decline in forthcoming one,” she said, adding that it was done by getting some financial autonomy after the 18th Amendment to the Constitution which enabled provinces to collect GST on services themselves.



According to Pasha, Punjab had observed a 35% increase in its revenue. She said the Punjab Revenue Authority (PRA) had nearly doubled its taxpayers from 11,000 to around 22,000 in the first ten months of the outgoing fiscal year.

She said the provincial government had broadened the tax net and now had 59 services since the establishment of the PRA. “There will be more services added to the GST net,” she added.

Moreover, she said, the Punjab government is focusing on expanding the tax net instead of increasing tax rates. “We are revamping the tax administration but automating it, easing the system and creating awareness among masses.”

Talking about policies in the forthcoming budget, she said the government was prioritising health, education, clean drinking water, agriculture and infrastructure developing.

Responding to a question pertaining to the recent criticism on Punjab government for focusing on infrastructure spending at the cost of services and social sectors, she said the government was distributing resources equally.

“Infrastructure development had been compromised during the past decade which hampered growth, especially of private businesses.”

She said Punjab allocated over 40% towards health and education in the previous budget, but it was not very obvious since a lot of allocations were done through local governments.

“Infrastructure is imperative for local and foreign investment and, according to an independent research, 2% GDP growth is affected alone due to power shortage in Pakistan,” she noted, adding that the government has invested in solar power, RLNG, coal and other renewable energies in a bid to balance the energy mix.

Published in The Express Tribune, May 25^th, 2016.

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