Punjab to unveil Rs3.226 trillion development focused budget

The Punjab government is all set to present provincial budgets today (Monday) for the next fiscal year (2022-23). The total outlay is Rs3,226 billion with a Rs683 development budget of which Rs240 billion will go to South Punjab region.

The health and education sectors have also received major allocations of Rs470 billion and Rs485 billion, respectively.

The budget for the fiscal year 2022-23 has been dubbed “Roshan Rahain, Naya Sawera” (lit pathways, new dawn).

Sources in the Punjab finance department confirmed that no new tax will be levied in the budget for the fiscal year 2022-23, while a special package will be given to combat runaway inflation.

Key measures

• Stamp Duty increased from 1% to 2% in urban areas
• Taxes rate go up for luxury houses
• Rs142 billion in subsidies
• Supply of free medicines resumes
• Laptop scheme relaunched
• Sehat Card to continue

Around 30% effective pay raise for some

The government has also announced 15% increase in salary and 5% increase in pension.

However, at several government departments employees from grade-1 to grade-19 will get not only a 15% pay raise but also a 15% disparity allowance, having their salaries effectively jacked up by 30%.

Employees working at the Secretariat and the Chief Minister Office will get only a 15% raise.

Revenue targets with higher provincial collection

The government has estimated revenue receipts at Rs2,521 with Rs2,020 expected from the federal transfer.

The provincial revenue collection has been estimated at Rs500 billion, including Rs190 billion by the Punjab Revenue Authority, Rs96 billion by the Board of Revenue, and Rs43 by the Excise Department.

The government has increased local revenue targets by Rs79 billion. The target of the Punjab Revenue Authority has been set at Rs190 billion with an increase of 22%, while the revenue target of the Board of Revenue has been set at Rs96 billion with an increase of 44%, and the target of excise revenue has been set at Rs 43 billion with an increase of 2%.

The Punjab government has proposed to increase the tax rates for luxury houses and pushed up Stamp Duty from 1% to 2% in urban areas.

The non-tax revenue has been estimated at Rs163 billion.

Subsidies

The PML-N-led government has earmarked Rs195.58 billion in subsidies and relief packages as it resumes the supply of free medicine to the patient.

Rs100 billion will be spent on social protection initiative, which is a utility support program, Rs5 billion in subsidy on ghee, Rs2 billion on Ramazan package, Rs17.32 billion on agriculture, Rs17.89 billion on transport, Rs0.44 billion on the e-Credit facility for small farmers, Rs39.93 on free medicines, Rs2 billion on fighting drought and plantation, and Rs6 billion on climate change.

Key schemes

The Punjab government has earmarked Rs685 billion for 4,991 development schemes in the province.

The major initiatives in the Punjab budget include the allocation of Rs2.14 billion for Pakistan Kidney and Liver Institute (PKLI) and PKLI Nursing School and Rs700 million for self-employment schemes.

The government has earmarked Rs1.5 billion for the laptop scheme, Rs1 billion for the prisoners’ welfare program, Rs500 million each for the digital Punjab initiative and soft and green grounds in the province, and Rs4 billion for the chief minister’s priority program.

The Sehat Card program will continue and Rs125 billion has been allocated under this head.

The government has allocated Rs35 billion for the road rehabilitation program, Rs4.2 billion for the skill development program, and Rs1.5 billion for the solarization of water supply and irrigation systems.

Rs58.5 billion have been allocated in the budget for the Sustainable Development Program with separate earmarking of Rs31.5 billion for the Sustainable Development Program for South Punjab.

It has reserved Rs308.3 billion for 3,791 ongoing development schemes and Rs115.5 billion for 1,133 new development projects.

Rs65.8 billion have been reserved for 36 schemes to be completed under the foreign assistance program and Rs109.5 billion for six projects to be completed under the special program.

The government has also earmarked Rs40.9 billion and Rs45 billion for 20 and five development schemes under other development program (ODP) and Public-Private Partnership (PPP) respectively.

Rs485 billion have been earmarked for the education department, with a major proportion going to development expenditure.

The Punjab government has proposed to allocate Rs528 billion for local governments, Rs1,018 billion for general public services and Rs231 billion for public order and safety affairs.

Other than this, road mapping will be Rs80 billion, irrigation Rs27 billion, special programs and public partnerships will cost Rs154 billion while urban development is expected to allocate at Rs 21 billion.

Last year the previous PTI government had presented Rs2,232.7 billion fiscally expansionary, growth budget for Punjab while Rs337 billion budget was announced for the fiscal year 2020-2021.