LAHORE: The Pakistan Tehrik-e-Insaf-led Punjab government on Monday unveiled the “progressive and pro-business” budget for the financial year (FY) 2020-21 with the total outlay of Rs2,240.7 billion, including Rs337 billion earmarked for development.
Provincial Finance Minister Makhdoom Hashim Jawan Bakhat presented the budget in the Punjab Assembly session, which was held at a hotel here due to coronavirus situation. Speaker Chaudhry Parvez Elahi chaired the session. Giving breakdown of the budget in his speech, the finance minister said under the National Finance Commission (NFC) Award, the Punjab province would receive Rs1,433 billion, while provincial receipts (Own Resource Revenue) were estimated at Rs317 billion during financial year 2020-21.
Terming the budget as progressive and pro-business in the given circumstances, Bakhat said ongoing expenditure for the next FY had been estimated at Rs1,318 billion containing Rs337.6 billion for salaries, while Rs337 billion had been allocated for development expenditures, Rs 128.40 billion for capital expenditure, and Rs125 billion as estimated provincial surplus.
The government had also reduced Service Delivery Expenditures by Rs10 billion and increased local governments’ budget by Rs10 billion, he said and added it was also proposed to save more than Rs19 billion through Pension Reforms.
Under the Annual Development Program, Rs97.66 billion had been allocated for social sector, Rs77.86 billion for infrastructure development, Rs17.35 billion for production sector, Rs45.38 billion for services sector, Rs51.24 billion for other sectors, Rs47.50 billion for Special Program, while Rs25 billion for Public Private Partnership. The minister said special funds on a priority basis had been allocated for 11 important sectors, including education, health and employment generation. He announced the “biggest tax relief package of provincial history” for business community which would also provide relief to public as well. Under the package, tax rate on health insurance and doctors’ consultancy fees and hospitals would be made zero from current rate of 16 per cent and 5 per cent respectively, Radio Pakistan reported.
He said tax rate on more than 20 services, including small hotels, guests houses, marriage halls, laws, caterers, IT services, tour operators would be brought down from 16 per cent to 5 per cent. He said Current rate of Stamp Duty rate would be brought down from 5 per cent to 1 per cent during the next fiscal year which would help in promoting construction industry and create new job opportunities.
The minister said the provincial government had decided to include the private sector to meet its development needs through innovative financing. He said the Punjab Public Partnership Authority had been set up which had identified mega projects worth Rs165 billion for the next fiscal year. The projects included Lahore Ring Road Phase 4, Multan Vehari Dual Road, Nala Layi Expressway, Rawalpindi Ring Road and provision of Water Meters.
Bakht said Rs15 billion were being allocated for Community Development Program. He said Rs8 billion were being earmarked for development of Micro, Small and Medium Enterprises. He said an allocation worth Rs6.87 billion had been made for Technical and Vocational Education Authority, out of which Hunermand Jawan Program was being launched at a cost of Rs1.50 billion.
The minister said a huge amount of Rs284.2 billion had been allocated for health sector for the next fiscal year. He said the government was utilising all available resources to tackle Covid-19 pandemic and an overall amount of Rs13 billion had been fixed to control the pandemic. He said Health Insaf Card Program had been expanded to whole province and health cards had been so far distributed amongst five million families.
Bakht said more than Rs391 billion were being allocated for education sector. Out of it, Rs350.10 billion would be spent on School Education Department which would ensure provision of scholarships to more than 5,00,000 female students and free text books for all.—
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