QUETTA: The Balochistan government has decided to form a revenue authority as it intends to expand its tax base, said Adviser to Chief Minister on Finance Mir Khalid Langove.
Addressing post-budget press conference along with Secretary Finance Mushtaq Ahmed Raisani, he said he hoped the body, the Balochistan Revenue Authority (BRA), would help to improve sales tax collection.
To a question, Mr Langove said the deficit of Rs15 billion projected in the budget 2014-15 would be bridged by improving collection. He attributed the deficit to increase in salaries and pension of government employees.
He said that no new tax had been introduced and Balochistan Investment Board had also been set up under the chairmanship Chief Minister Dr Abdul Malik to facilitate public-private partnership for projects to improve social and physical infrastructure.
On a question about reduction in the share of Balochistan in Gas Development Surcharge, Mr Raisani said it was because of depleting gas production from existing gas fields in the province. “If new gas reserves are not explored, the old wells would dry up in the next few years,” he explained.
He informed that the province was getting 30 per cent share in the profit and 5pc royalty from Saindak project. The federal government has yet to transfer 30pc profit to Balochistan that it fetched from the Chinese company running the project.
He termed the budget balanced and people-friendly as Rs50.7bn has been allocated for the Public Sector Development Programme (PSDP) against Rs164.97bn for revenue expenditure.
The province, which hopes to collect Rs8.970bn locally, will receive Rs141.2bn from divisible pool and Rs16.8bn in direct transfers, Rs10bn from other receipts and Rs23.2bn from capital receipts.
“Total income is estimated at Rs200.051bn and expenditure at 215.6bn,” Mr Langove said.
