LAHORE: The provincial debt of Punjab government rose a staggering 24 percent in last financial year 2017-18, revealed Punjab Finance Minister Jawan Bakht.
Punjab’s overall debt has touched Rs693 billion, the finance minister shared with the Lahore Economic Journalists Association on Thursday, reports Express Tribune.
According to Mr Bakht, when the Pakistan Tehreek-e-Insaf (PTI) took reins of power earlier this month the Punjab government was facing a burden of Rs100 billion.
He added the provincial government had already exhausted its borrowing limit of Rs37 billion, whereas contractors were owed Rs57 billion which had been carried forth in the next financial year.
While talking about mismanagement by the previous provincial PML-N government, Mr Bakht shared financial management of pensions and salaries was disregarded and provincial pension bill increased to Rs228 billion in FY18.
He shared the salary bill had risen to Rs314 billion after a pay increase was approved by the previous Punjab government.
Moreover, Mr Bakht disclosed from the Rs635 billion Annual Development Plan (ADP), around Rs411 billion was used.
He highlighted “this exposed the under-capacity of institutions in spending the development budget”.
The finance minister shared the provincial austerity measures committee would meet twice a month to debate the measures taken and their results.
He said the budget would be announced in October and the provincial government had decided to commence work on resource mobilization alongside the ADP for next financial year.
Regarding revenue measures, Mr Bakht stated the Punjab Revenue Authority (PRA) was performing quite well by registering over 50,000 taxpayers and collected revenue over Rs110 billion in comparison to the Board of Revenue and Excise and Taxation Department.
