Caretaker govt announces four-month Punjab budget

The caretaker Punjab government announced a budget for the first four months of the financial year 2003-24 on Monday.

The government planned to release the four-month budget under the relevant clause of the Constitution with the signatures of the caretaker chief minister as it lacks the authority to approve a full-year budget in the absence of an elected government. However, it is essential to ensure that ongoing expenses are accounted for and the daily affairs of the province are managed.

In the absence of the provincial assembly, the presentation of the finance bill remains pending. However, the caretaker cabinet reviewed and approved the budget, which was subsequently officially released.

An overall allocation of Rs1,719.3 billion has been made for the four-month period. The budget for the fiscal year 2022-23 amounted to Rs3,206.4 billion.

The development budget for the previous financial year was set at Rs685 billion, while in the new four-month budget an allocation of Rs325 billion has been earmarked to continue supporting crucial initiatives during this interim period.

Significant allocations have also been made to address various financial obligations and ensure the smooth functioning of the province.

Among the allocations, an amount of Rs158.4 billion has been set aside for salary of government employee and Rs116.7 billion for pensions.

Subsidies of Rs153.6 billion have also been allocated.

A sum of Rs193.5 billion has been reserved for the Provincial Finance Commission. The caretaker provincial cabinet approved a 30 per cent raise for all government employees in Punjab as ad hoc relief. Retired employees above the age of 80 will receive a 20% increment in pension.

The caretaker cabinet decided to abolish all taxes and duties on the information technology industry in the province. An allocation of Rs70 billion was designated for providing relief to the people during the period.

According to an official statement, a proposal to increase the stamp duty was rejected and it was maintained at a rate of 1% to support the construction industry. An allocation of Rs47.6 billion was approved for the agriculture sector to provide relief to farmers and promote modernisation.

The amount set aside for the purpose for the whole of the previous year was Rs12 billion.

The caretaker cabinet resolved to complete half of the ongoing development projects in the province during the coming four months.

It approved expenses of Rs16 billion to operationalise a power plant in the Trimmu area of Jhang, which had been non-functional since 2017.

Published in The Express Tribune, June 20^th, 2023.