Many common streaks from the previous provincial budget highlight Punjabs budget for 2013-14. Only this time, it will be relatively easier with the backing of Islamabad. And not surprisingly, the budget for the province is not too conflicting with the attitude adopted by the federal government.
While some are calling it a populist budget, the allocations attached to the expectations need more than sheer opposition.
Like the federal budget deficit, the first trillion rupee provincial budget has a deficit of around Rs30 billion. And this is where the first shot of optimism comes from; the harmony between the federal and the provincial budget of Punjab over infrastructure, energy, education, and health can be clearly seen.
If the way the Chief Minister dealt with it in his last term is anything to go by, the mathematics is likely to turn true. With over 14 percent rise in Annual Development Fund and Rs50 billion extra for other development items, the focus on infrastructure development by the provincial government is apparent.
Similarly, allocations for health and education departments in the budget have also been increased by 25 percent and 30 percent respectively over the estimates in the previous budget. The laptop scheme, Metro buses and increase in government salaries and pensions by 10 percent were some of the expected measures.
Other optimistic moves in line with the government at the centre are a 30 percent and a 15 percent cut in the Chief Ministers house and non-salary expense respectively, and a 100 percent rise in the development expenditure for the ailing energy sector.
Sadly on the revenue generation side, the province is estimated to generate only 19 percent of the total revenue receipts, while the rest will come from the federal divisible pool.
However, the provincial budget is a restraining one for the affluent. In pursuit of new taxpayers as well as in an attempt to push the tax envelope, the Punjab government has added 16 service sectors to its sales tax scope including fashion designers, interior decorators, consultants, architects and property dealers.
Also, tax on residential properties of two kanals or more is a constructive attempt of brining the rich into the tax ambit as it will not affect those who own smaller real estate properties.
Finally, the provincial government seems to acknowledge the necessity of agriculture income tax; though it is roughly less than one percent of the total share of Punjab in the agriculture, the allocation of Rs2 billion signals towards the provinces stance on farm tax.
============================================================================
PUNJAB BUDGET AT A GLANCE
============================================================================
Rs (mn) Budget Revised Budget
============================================================================
CLASSIFICATION 2012-13 2012-13 2013-14
General Revenue Receipts 780,675 719,778 871,953
Current Expenditures 532,860 549,762 607,569
A-Net Revenue Account-Surplus(+)/Deficit(-) 247,815 170,016 264,384
Current Capital Receipts 15,559 10,559 17,661
Current Capital Expenditure 55,039 40,191 51,745
B-Net Capital Account-Surplus(+)/Deficit (-) -39,481 -29,632 -34,084
C-Surplus for Development (A+B) 208,334 140,384 230,300
D-ADP Financing Items 41,666 26,475 59,700
Foreign Project Assistance 11,488 17,631 29,700
Operational Shortfall 30,000 8,843 30,000
Public Account 178 -- --
Total Resource for Development (C+D) 250,000 166,858 290,000
============================================================================
Source: Punjab Budget 2013-14 White Paper
Comments
Comments are closed for this article.