The Cabinet of Punjab, under the supervision of the caretaker government, has approved the budget for the upcoming fiscal year, effective from July 1, 2023, to October 30, 2023. The four-month budget, presented by the Punjab Treasury Department, has been given the green light, adhering to Article 126 of the constitution. The estimated total expenditure for this period amounts to PKR 1719.3 billion.
Among the notable highlights of the budget is a substantial increase in allocations for education and health, with both sectors seeing a 31% budgetary surge. Additionally, the basic salaries of government employees will witness a 30% hike, bringing much-needed relief to the public sector workforce.
In a move to encourage growth in the IT industry, all provincial taxes on the sector have been eliminated. Furthermore, the Punjab government also establishment a PKR 1 billion for journalist endowment fund.
Addressing social welfare concerns, the budget allocates an amount of PKR 7 billion, moreover, an allocation of PKR 120.4 billion has been set aside for efficient service delivery.
It is noteworthy that the budget does not impose any new taxes on the public. The proposal to increase stamp duty by 3% has been rejected, and the rate will remain at 1%.
The energy sector receives a capital investment of PKR 16.4 billion, which will contribute to the development and improvement of the sector. Additionally, the agricultural sector will benefit from an approved allocation of PKR 47.6 billion, aimed at boosting agricultural growth and enhancing farmers’ livelihoods.
Mujahid Sher Dil, the Secretary of the Finance, explained the budget’s provisions to control inflation. Furthermore, the Punjab government has taken the initiative to repay loans amounting to PKR 60 billion, which were acquired from banks for wheat procurement.
“This measure will help reduce the daily interest payment of PKR 25 crore from the provincial treasury. It is expected that these loans will be fully repaid within the next four months, allowing the saved interest amount to be utilized for public welfare projects,” he said.
In addressing pension-related concerns, the Secretary Finance announced a 5% increase for pensioners aged 60 to 80, while retired employees above the age of 80 will receive an approximate 20% increase in their pensions.
“This decision rectifies the previous practice of stopping pension payments on the day of retirement, forcing retirees to wait for one and a half years to receive their pension documents. With the Punjab government’s approval, retired employees will now be able to receive 65% of their pension one year after retiring, bringing significant relief to pensioners,” he added.
Secretary also clarified that election expenses are the responsibility of the federal government. However, the provincial government will allocate funds for security expenditures during general elections. Additionally, the increase in the wheat subsidy loan is a result of the previous untargeted subsidy, where even affluent individuals were benefiting from the prescribed price of wheat. The new budget aims to provide targeted relief for public welfare, which may include cash transfers alongside subsidies on food items.
Later in a press conference, the provincial minister of Information and Culture Aamir Mir, along with Provincial Minister for Industries and Commerce SM Tanveer, expressed satisfaction with the people-friendly budget presented by the caretaker government.
Amir Mir commended Chief Minister Mohsin Naqvi’s leadership in crafting a budget that does not impose new taxes and abolishes the sales tax on IT-related businesses, promoting IT exports. Furthermore, the budget allocates 70 billion rupees to provide relief to the poor.
The Provincial Minister highlighted that the caretaker government is working under the supervision of the Election Commission, and the Chief Minister’s selection was made by the commission. He confirmed that as soon as the election date is announced, the caretaker government will oversee the electoral process.
Provincial Minister SM Tanveer revealed that the caretaker government has initiated the reduction of a 600 billion rupee loan obtained from Punjab Bank and other banks for wheat procurement.
“The current daily interest payment amounts to 250 million rupees, and if not addressed, the loan would accumulate to 1,000 billion rupees in 2024 and 2,000 billion rupees in 2025, requiring a daily interest payment of 800 million rupees. This loan repayment initiative by the Punjab government will allow the saved interest amount to be directed towards the welfare of the people. Furthermore, the caretaker government aims to complete 50% of ongoing development schemes in the province within the next four months. The Punjab Thermal Power Company Limited will expedite the completion of the 1,240-megawatt RLNG-based power plant within the next two months, aided by an allocation of 16 billion rupees. The budget also reflects a 31% increase in the allocation for education and health sectors, and a 20% increase in pensions for pensioners above the age of 80,” he added.
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