LAHORE: The Punjab government is likely to present around Rs 1,165 billion budget for fiscal year 2015-16 on Friday against Rs 1,044 billion of 2014-15.
The supplementary budget statement for the concluding financial year will also be presented before the Provincial Assembly.
The newly-appointed Punjab Finance Minister Dr Ayesha Ghaus Pasha will present the budget, while Punjab Assembly Speaker Rana Iqbal Khan will chair the budget session.
Punjab Governor Malik Muhammad Rafique Rajwana had summoned the provincial assembly’s 15th session on last Monday which is in progress and it would continue till end of the current month.
Dr Ayesha Ghaus Pasha will be the first-ever female finance minister of Punjab who is going to present the provincial budget. Last year, the budget was presented by Mujtaba Shujaur Rahman.
Dr Ayesha is known as expert in financial matters and represents the government to deal with fiscal and development projects particularly those run by with collaboration of China and Turkey.
The Orange Line, Matro Bus Service in Multan, Khadim-e-Punjab Rural Roads Programme, Apna Rozgar Scheme, skill development, Daanish schools, Saaf Pani Project as well as other projects will be initiated for a positive change in rural life.
According to the Punjab government officials involved in budget making, the yellow cab, Ashiana, soft loans and laptop schemes would continue in the next fiscal year with enhanced allocations of the resources.
The upcoming budget would include allocations for local bodies’ elections with Orange Line Metro Train project getting the biggest allocation of about Rs 153 billion in ADP for its civil works, while Rs 11 billion will be allocated for the running development projects in Lahore.
Like the federal budget, infrastructure development, economic growth and skills development will remain key areas of focus for the Punjab government in provincial budget with around Rs 375 billion for Annual Development Programme.
Budget for current expenditures is estimated at about Rs 750 billion versus Rs 699 of current fiscal year. The provincial government will set the tax collection target of Rs186.4 billion for next fiscal year against Rs 164.7 billion of current financial year which has not been achieved either by the Punjab Revenue Authority so far.
Under the General Revenue Receipts of Rs 1.849 trillion, the provincial government would receive Rs 894.65 billion from the divisible pool of the federal government, while the provincial tax and non-tax revenues have been estimated at Rs 268.86 billion in the next fiscal year.
According to provincial finance ministry officials, the economic managers presently are trying to amend some clauses of luxury tax which was introduced during the budget of 2013-14 and was delayed on directives of the courts and not implemented so far.
Finance department officials said that like the outgoing fiscal year budget allocations for Southern Punjab districts in the upcoming year would also be 36 percent of the total allocations of about Rs 125 billion.
The government is also allocating a subsidy of Rs 7 billion for flour, transport, besides establishment of Ramazan Bazaars in Punjab.
About Rs 50 billion will be allocated for project of supply of potable water to rural areas in the province with the name of Saaf Pani Project under which water filtration plants will be setup in next three years. The project will be launched from four districts of South Punjab and this will gradually be expanded to the whole province.
About Rs 150 billion will be allocated for Khadim-e-Punjab Rural Roads Program to improve rural economy and the Communication and Works Department will implement this huge program of repair and construction of rural roads.
The Punjab government has already launched this project with Rs 15 billion at the end of running fiscal year.
According to finance department officials, the Punjab government would also increase salaries and pensions of the serving and retired civil servants corresponding with the decision in regard by the federal government by 7.5 per cent.
The core Annual Development Plan (ADP) is likely to be fixed at around Rs 355 billion with some additional block allocation of more than Rs 65b for the new schemes.
Rs 64 billion will be allocated for education and Rs 47 billion for health, while Rs 26 billion is being spent on energy projects at provincial level.
Like in the past, no plan is under consideration to bring the agriculture income into tax net despite the demand of IMF. Sources said that many proposals are under consideration to increase revenue through tax collection.
Sources further said incentives and subsidies to farmers on fertilizers; pesticides and machinery are also under consideration for the next budget.
The next Punjab budget is likely to carry special programme for employment and self-business schemes for the youth in addition to encouraging and providing special incentives to the students of higher education under the Higher Education Commission Punjab and for those undertaking research oriented education.