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Punjab presents budget of Rs2,653 billion for financial year 2021-22

Punjab presents budget of Rs2,653 billion for financial year 2021-22
June 14, 2021

LAHORE (92 News) - Punjab Finance Minister Makhdoom Hashim Jawan Bakht on Monday presented the budget of Rs2,653 billion for financial year 2021-22.

The budget session was held in the newly-constructed building of the Punjab Assembly. The total outlay of the budget has increased by more than 18% and the development budget has gained 66% compared with the current fiscal year.

Addressing the provincial assembly, Hashim Jawan Bakht presented the budget with a total outlay of Rs2.653 trillion. He mentioned that the PTI government, despite all difficulties, is raising the development budget by 86 per cent increase to Rs560billion.

Current Expenditure

The minister said the amount of current expenditure has been estimated as Rs1428 billion.

Revenue Collection

The finance minister said that the target of provincial revenue has been set at Rs359 billion. He also said that the federal government had set tax revenue collection target of Rs5,829 billion for next fiscal year.

He said under the NFC Award, funds worth Rs1684 billion will be transferred to Punjab from the federal government. He said a target of Rs405 billion has been set for Provincial Receipts.

Punjab will be receiving Rs1,684 billion from the revenues of FBR. FBR will be targeting to collect Rs5,829 billion next year. Punjab will be generating revenues of its own of Rs404.6 billion. The country’s largest province will be having a surplus of Rs125 billion.     

Annual Development Program

He said that Rs560 billion are being allocated for a record Annual Development Program (ADP), which are 66 per cent more than ongoing development programs.

The provincial minister further said that a network of development schemes was being laid in 36 districts and Rs 28.30 billion have been allocated for development projects.

Allocation for South Punjab

For the first time in history, a separate annual development plan of Rs189 billion is allocated for south Punjab, while these schemes would also be published in separate budget books.

The minister announced allocation of Rs196 billion for development projects in South Punjab, which amounts to about 34 per cent of the province’s ADP. He added that the funds allocated for South Punjab will not be used anywhere else.

Health

Makhdoom Hashim said Rs370 billion have been allocated for the health sector. He said Rs80 billion have been allocated for the Universal Health Insurance Program. He also said that construction of a 1,000-bed hospital would be started in Lahore at a cost of Rs 14 billion, adding that Rs 3 billion modern trauma centers will also be set up in 14 cities.

Education

The minister maintained that the total budget of education has been set at Rs442 billion and an engineering university is also being set up in Sialkot at a cost of Rs17 billion.

He 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.

Salaries and Pensions

Hashim Jawan Bakht said that the Punjab government has decided to raise salaries of its employees and pensions of retired employees by 10 per cent. Grade 1 to Grade 19 employees, who have not been granted additional allowance of any kind earlier, will be granted a 20 per cent increase in their salaries on account of special allowance.

He announced to raise the monthly wages of laborers from 17,500 to 20,000 rupees.

COVID Package

He said that during Covid situation, Punjab introduced a package worth Rs106 billion for economic restoration of public, which included a tax relief worth 56 Billion rupees to the business community.

Tax Relief Package

The Punjab government has decided to give a Tax Relief Package of over Rs50 billion this year also for ease of business as the economy reels from the effects of the Covid-19 pandemic.

Agriculture

The finance minister said that over Rs31 billion have been allocated for agriculture sector. He said the government would introduce reforms in agriculture sector, while four centres of excellence would be established for wheat, rice and other crops.

Transport department

During his budget speech, Finance Minister Hashim Jawan Bakht said Rs 16.8 billion have been earmarked for the transport sector during the fiscal year 2021-22.

He said that the provincial government had allocated Rs 16.1 billion for ongoing schemes under which, 15.9 billion would be spent on Mass Transit project while Rs 197 million will be spent in the transport department.

He said Rs 697 million had been earmarked for new schemes of the transport department. The new scheme includes construction of 200 bus stop shelters, including Bus Information and Scheduling System in Lahore.

Electric Buses

“Rs 600 million have been earmarked for electric buses in Lahore,” the minister said and added the tax rate on various services are being reduced to 16 per cent.

 Sailent Features

  • 10% increase in salaries, pensions proposed
  • Punjab fixes tax target at Rs160 billion for FY2022
  • Rs369 billion earmarked for health sector
  • Rs100 billion earmarked for District Development Programme
  • Rs560 billion for development
  • Rs442 billion for education
  • Rs196 billion allocated for South Punjab
  • Rs89 billion for provision of water in cities
  • Rs3 billion set aside for infrastructure development