The Punjab government on Monday presented budget for fiscal year 2020-21 with a total outlay of 2.24 trillion amid protest and walkout by the opposition.
The provincial budget was presented by Finance Minister MakhdoomHashimJawanBakht at a local hotel, which had already been declared as Punjab Assembly chambers. The finance minister started his speech by criticizing the economic policies of the previous governments, adding that the Covid-19 outbreak has also severely hit the economy in the past few months. He said that the PTI government made a good start of the ongoing fiscal year but the Covid-19 hampered the growth. “The taxes of FBR were increased by 13 percent while the current account deficit was decreased by 71 percent as compared to last year’s… but then the Covid-19 came,” he said.
The finance minister said Prime Minister Imran Khan launched Ehsaas Emergency Programme with a package of 144 billion to give relief to the poor hit by Covid-19, adding that Punjab contributed a hefty amount of Rs8.4 billion to the initiative. He said Punjab arranged Rs43 billion immediately to deal with Covid-19, which also includes Rs18 billion tax relief package for the business community.
He said Rs106 billion have been allocated in the budget to deal with coronavirus. It includes direct expenditure of Rs50 billion while Rs56 billion are related to tax relief package given to different sectors.
He said Punjab is likely to get Rs1433 billion under the NFC award this year. The own resource revenue is estimated at Rs317 billion which it will collect from provincial taxes.
The finance minister gave seven priorities of the budget which include tax relief package, decrease in ongoing expenditures, economic stability, social protection, human capital development, agriculture and public private partnership. He said that the tax relief package of more than Rs56 billion has been given this year which is the highest in the history of Punjab. The GST on health insurance, consultancy fee of doctors and hospitals is proposed at zero percent. The services tax is decreased from 16 percent to 5 percent on small hotels, guest houses, marriage halls, catering, property dealers, photography and parking sectors. The property tax can be paid in two installments during the next fiscal year.
An amount of Rs337 billion has been earmarked for the development programs. It includes Rs97.6 billion for social sector, Rs77.8 billion for infrastructure development, Rs17.3 billion for production sector, Rs45.3 billion for services sector and Rs25 billion for public private partnership programs.
Under the South Punjab Poverty Alleviation Program, projects of Rs2 billion will be started in Bahawalnagar, Bahawalpur, Rahim Yar Khan, DG Khan, Muzafargarh, Rajanpur, Layyah, Bhakkar, Khushab and Mianwali. For South Punjab Secretariat, Rs1.5 billion have been earmarked as he said that uplifting the South Punjab is a promise of PTI government.
An amount of Rs284 billion is earmarked for the health sector which includes Rs250.7 billion for the ongoing expenditures while Rs33 billion for the development programs. To control the Covid-19, Rs13 billion have been earmarked. The DHQs of Gujranwala, Sahiwal and DG Khan will be upgraded this year while missing facilities in their trauma centers will also be provided.
For education, an amount of Rs391 billion has been earmarked which includes Rs357 billion as ongoing expenditures and Rs34.5 billion for development programs. An amount of rs350 billion will be spent on school education and Rs37 billion will go to the Higher Education department. Only Rs3.9 billion will be spent on development programs of higher education while Rs27.6 billion has earmarked for development schemes of school education.
The finance minister said that locust attack is a major challenge and Rs4 billion have been allocated to deal with the issue as well as other natural calamities. On a whole, Rs31.7 billion have been earmarked for the agriculture sector. For livestock and dairy development, an amount of Rs13.3 billion has been allocated. The forestry department will get Rs8.7 billion to promote the tree plantation drive in the province.
To expand the Rescue 1122 emergency service in remaining 62 tehsils of Punjab, Rs4.1 billion have been allocated. An amount of Rs9.2 billion will be spent on Punjab Police Integrated Command and Control Center in Rawalpindi under the Safe City Authority of Punjab. An amount of Rs1 billion will be spent on Naya Pakistan Housing Program while Rs2.5 billion have been earmarked for Punjab Aab-e-Pak Authority. An amount of Rs10 billion has been earmarked to repair the dilapidated roads of Punjab. An amount of Rs2 billion has been allocated to promote religious tourism in the province.
Earlier, as the Finance Minister started delivering the speech, the opposition lawmakers stood on their seats while chanting slogans against the government. PML-N’s Uzma Bukhari, HinaPervaiz Butt, Kh Imran Nazir and Samiullah Khan were at the forefront in chanting slogans.
The session was later adjourned to meet again on Thursday at 2pm.
