Lion’s share to go to non-uplift projects

Tax rate revision, austerity measures likely in Punjab

LAHORE:

The Punjab Finance Department reportedly plans to present a budget of around Rs2.8 trillion in the provincial assembly for the next financial year.

According to sources, non-development expenses of Rs1.7 trillion and a development budget of Rs650 billion is likely to be proposed for the year 2022-23 in Punjab.

The proposed provincial revenue target for the year is Rs400 billion.

The sources said the budget proposals included an allocation of Rs415 billion for education, Rs300 billion for health and Rs150 billion for maintaining law and order in the province. There will be a cut in the use of petrol in government vehicles by the ministers. No new purchases will be made in the next financial year of cars and luxurious item.

The sources said no new tax would be imposed by the government in the next financial year. However, the rates of existing taxes will be revised.

The provincial government plans to spend Rs100 billion on the national health card scheme. A fund of Rs1.31 billion is being allocated on an emergency basis for the public relief package. Flour and sugar will be subsidized, for which more than Rs30 billion will be set aside.

It is proposed that Rs38 billion would be allocated for non-development expenses in the agriculture sector and Rs370 million for women development.

The province will spend Rs50 billion on development work in government schools, Rs376 billion on salary and other expenses and Rs19 billion in non-salary budget, in addition to Rs2 billion on Danish schools, Rs5 billion for private partnership schools, Rs21 billion for the school programme under the Punjab Education Foundation and more than Rs4.5 billion non-school programe in the new financial year.

The proposals include allocation of Rs1 billion for upgrading government schools, Rs300 million for information technology labs, Rs2.86 billion for repair of dilapidated school buildings, Rs4 billion for construction of additional classrooms in government schools, Rs8 billion for leave encashment and financial assistance to the families of deceased teachers.

A recommendation has been made to allocate Rs800 million for the expenditure of Chief Minister’s Office, while the former Buzdar government had allocated a budget of Rs780 million under the head. In the new financial year, the allocation may be hiked by Rs25.2 million.

An additional allocation of Rs46.7 million is being recommended for the Governor’s Secretariat in the next financial year. The proposed allocation is of Rs580 million.

The sources said 35% of the provincial budget will be allocated for South Punjab. They said 13 mega development projects would be launched in the province during the year.

According to the sources, development schemes costing Rs500 million will be launched on the recommendation of each member of the provincial assembly.

Projects worth Rs28 billion will be completed with foreign loans.

It is proposed to allocate Rs114 billion for ongoing and new projects under the District Development Programme. A total of Rs237 billion is likely to be allocated for the completion of mega projects. An amount of Rs20 billion will be set aside for block allocation. Private-public partnership will be included in the budget for completion of development schemes.

Published in The Express Tribune, June 12^th, 2022.