Punjab Finance Minister Dr Ayesha Ghaus Pasha on Friday presented Rs 1.97 trillion tax-free annual budget of fiscal year 2017-18, with a huge amount of Rs 635 billion set aside for development projects in the province.
The consolidated budget outlay (inclusive of expenditure of Rs259.8bn on state trading in wheat) has been estimated at Rs1.97 trillion, (up by 17.2 per cent from the original estimates for the outgoing year, with current expenditure projected to rise by 17.6pc to over Rs1tr on a year-on-year basis.)
The bulk of money Rs1.1tr — for meeting its current and development expenditure
Announced a 10% increase in salaries of public servants as well as pensions of the retired employees, with minimum wages fixed at Rs 15,000 per month. The government has earmarked an amount of Rs 111 billion for health sector, an increase of 58.4% in allocation as Rs 70.06 billion had been set aside in the outgoing fiscal year. An amount of Rs 20.4126 billion has been allocated for provision of free medicines.
A sum of Rs 7.567 billion has been allocated for industries in the proposed budget. TEVTA will receive about Rs 5.054 billion as grant-in-aid and an amount of Rs 145.575 million has been reserved for Headquarters Establishment.
An amount of Rs 179.354 million has been reserved for Inspectorate of Mines, whereas the Punjab Small Industries Corporation will get Rs1.420 billion as grant-in-aid.
The minister announced that GST (general sales tax) on construction services had been reduced from 16% to 5% while new construction firms have been exempted from registration fee to encourage investment in the province.
For economic growth, the Punjab government announced to restore the old policy of issuing investment bond of Rs 25 billion. The policy of issuing bonds was abolished in 70s.
The minister announced a couple of new schemes for the general public, including Orange Cab Scheme, Hand-Tap Scheme, Regional Development Project, Metro Bus Service for Faisalabad and continuation of Kisan Package. She said the government plans to distribute 50,000 Orange Cabs among the jobless youth while Hand-Tap Project will be started in backward districts of the province with a total amount of Rs 330 million. The government will provide Rs 15 billion for Kisan Package for the betterment of the farmers, she said.
About the Orange Line Metro Train (OMT) project in Lahore city, she informed the House that China’s Exim Bank would provide Rs 94 billion. She said that 70 percent work on the project had already been completed. She said that government will start a Regional Development Project in deprived and backward districts of the province and an amount of Rs 5 billion has been allocated for the purpose.
The minister told the House that government spent Rs 7 billion on the Chief Minister Laptop Scheme in the current fiscal year, but, surprisingly no amount was allocated for the scheme in the new budget.
The Finance Bill 2017 proposes to merge all taxes, duties or fees in one head of account of Stamp Duty which would be issued through e-stamping system.
The Punjab government has allocated a record Rs635 billion for the Annual Development Programme (ADP) for 2017-18 under a strategy to optimise investment decisions. The allocation is 15.45 per cent higher than Rs550bn for the outgoing fiscal year.