Punjab to present Rs2,600 billion budget tomorrow

According to the details, Punjab Finance Minister Hashim Jawan Bakht will present the budget. Meanwhile, Chief Minister Usman Buzdar has summoned a special session of the cabinet ahead of the budget.

Sources privy to the matter said that the special meeting of the Punjab cabinet will approve the budget proposals for the upcoming fiscal year.

The cabinet meeting will also give its nod to the revised budget estimates.

Provincial ministers, advisors, special assistants, chief secretary and concerned secretaries will attend the session.

According to sources, in Rs2,600 billion FY2021-22 budget, no new taxes would be imposed while Rs550 billion has been proposed for development program in the province.

Per sources, in a budget to be announced on Monday, the government has proposed to allocate Rs200 billion for the ongoing development projects in Punjab while it has been recommended to increase the development budget for health and education by one and a half times.

Rs70 billion has been proposed for health cards, Rs40 billion for relief of business affected by COVID, Rs35 billion for roads and Rs80 billion for South Punjab under the annual development program.

Separately for South Punjab development programmes, a budget amounting to Rs196 billion has been earmarked for which a distinct budget book will be laid out and the sum allocated could not be spent elsewhere.

It has been suggested to spend Rs20 billion on agricultural sector development schemes and Rs100 billion would be allocated under the development program for 36 districts.

It has been proposed to earmark Rs7 billion for Insaf School Upgradation Program under which the primary school will be converted into a secondary school in the evening.

Similarly, a huge amount will be allocated for the environment, minorities, endowments and tourism.

Sources said that it is also proposed to keep up to Rs2.5 billion in the Green Infrastructure Fund while Rs400 billion would also be allocated for the procurement of wheat.

Sources said that the Punjab Revenue Authority has proposed to reduce taxes on 9 services.

In the budget of the next financial year, Punjab has proposed to reduce taxes on beauty parlours, fashion designers, stitching services, warehouse services including construction, laundry and rental builders services.

The Punjab Revenue Authority has set a tax target of Rs160 billion for FY2021-22.

The cumulative development budget is likely to be more than Rs600 billion and the non-development budget is likely to be up to Rs1350 billion.

Punjab aims to get more than Rs1,680 billion from the federation while Rs300 billion will come from provincial taxes and Rs73 billion from non-tax revenue.

The Punjab budget also includes a proposal for a 10% increase in employees pays and pensions.