Buzdar-led Punjab govt presents ‘development-oriented’ third budget, imposes no new tax

Provincial Finance Minister Makhdoom Hashim Jawan Bakht, who is presenting the budget in the provincial assembly amid slogans and uproar from opposition benches, claimed the government has earmarked record development budget of Rs560 billion with 66 percent increase.

Earlier, the Punjab cabinet approved the budget 2021-22, revised estimates of outgoing fiscal year and the Punjab Finance Bill 2021-22 with Chief Minister Sardar Usman Buzdar in the chair.

Addressing the assembly members, Speaker Punjab Assembly Chauhdry Pervez Elahi said the new building of the Punjab Assembly has been completed after 16 years’ journey, adding “I warmly welcome all members in the new facility.”

“Without the cooperation of Chief Minister Sardar Usman Buzdar, the PA would haven’t abled to complete this key project,” he said, adding “I had dreamed of ‘today’ when the budget session is taking place in the new building.

Opening his speech during the budget session chaired by Speaker Pervez Elahi, the provincial finance minister said the PTI government has adopted the way of economic progress.

He said in addition to mega development spendings,  a separate annual development plan of Rs189 billion has been reserved for south Punjab. 

He said Rs359 billion in provincial revenues would be collected with 47 per cent growth in FY21 as compared to the collections in the outgoing fiscal year of 2019-20.

The Punjab Revenue Authority (PRA) has collected 42 per cent more revenue as compared to collection of previous fiscal year of 2019-20, he said, adding the collection is the highest as compared to other provinces.  

The provincial government will receive Rs684 billion from the federal divisible pools. The provincial revenue collection target has been set at Rs405 billion that is 28 per cent more than the annual target of outgoing year.

The government has estimated Rs1,428 billion for ongoing provincial expenditures.

Bakhat said an amount of Rs442 billion has been allocated for education and social sector, adding Rs369 billion have been allocated for health sector, with 30 per cent spending compared with the allocations of the outgoing fiscal year. "The government is allocating Rs80 billion under health insurance for citizens of Punjab."

Regarding investment in education sector, the minister said 25 per cent of schools in Punjab are being upgraded while seven new universities are being set up in the province next year. "In addition, 40,000 students will receive vocational training."

An amount of Rs145 billion has been reserved for infrastructure and Rs23 billion have been kept for services sector, the minister said, adding an amount of Rs58 billion have been proposed for agriculture, industry, livestock, tourism and forests.   

The government, he said, will spend Rs16.8 billion in transport sector during the next fiscal year.

The provincial government has allocated Rs10 billion for coronavirus out of which Rs40 billion would be reserved for compensating traders and business community. 

The minister said the government will give 10 per cent raise to the serving and retired government servants in addition to the adhoc allowance announced in the past.