Punjab Finance Minister Sardar Hasnain Bahadur Dareshak on Thursday presented tax-free provincial budget for 2004-05 with total outlay of Rs 185.324 billion, showing a surplus of Rs 34.65 billion in the Punjab Assembly.
The Annual Development Programme (ADP) pitched at Rs 43.44 billion in the proposed Budget 2004-05 is significantly higher than the budget 2003-04 allocation of Rs 30.50 billion. In funding of the ADP, Rs 34.70 billion is to be financed from provincial resources and Rs 8.74 billion from the foreign aid.
In its key features, around 30 percent of the total ADP allocations goes to the social sectors. The allocation to the pro-poor sector is Rs 23.24 billion.
Dareshak averring on investment in strategic sectors, current and development combined in Budget 2004-05, said that Rs 20 billion was to be spent on access to justice and law and order; Rs 8.3 billion on the education sector reforms, Rs 0.4 billion on the special education, Rs 5.5 billion on health sector reforms, Rs 3 billion on water supply and sanitation, Rs 8 billion on communications and roads; Rs 5.3 billion on irrigation and agriculture, and Rs 3.78 billion on livestock in the province.
The provincial finance minister said there was a record increase in provincial tax and non-tax receipts in revised estimates 2003-04, adding against the tax receipts of Rs 14.86 billion, the estimated recovery of taxes in revised estimates is Rs 18.187 billion, and this indicates an increase of 29 percent. Similarly, in the non-tax receipts Rs 15.605 billion is likely to be collected against the adjusted original estimates of Rs 10.490 billion, and this is 47 higher than the original estimates, he said.
Sardar Hasnain Bahadur Dareshak said the Current Capital Estimates of the Budget 2004-05 include equity financing arrangements with an outlay of Rs 9 billion on mega projects like Lahore Ring Road, Development of New Murree, Jallo Theme Park, and others.
Terming poverty alleviation as one of the key goals of the Punjab government, the minister dubbing Budget for 2004-05 as belonging to masses and poor, announced a 15 percent increase in pay of civil servants and exemption of property tax on 5-marla houses in the province in certain categories already notified.
In order to eke out the construction industry, the Punjab government is also in a process of revision of Land Acquisition Laws, Rent Control Laws, Building bye-laws and Property Tax, he added.
Applauding the performance of incumbent provincial government during last two-year, he said they had increased ratio of pace of development on projects in the province by 100 percent, adding there has been 24 percent increase in collection of taxes in Punjab.
Appreciating the pace of development endeavour set by President Pervaiz Musharraf, the minister said the Punjab government was doing its best to follow the example laid at the highest level.
Averring on his government''s Debt Management Strategy, he told the House the Pervaiz Elahi''s government had returned Rs 2 billion debt during the current fiscal year.
In agriculture research programme to which the Punjab chief minister has taken special note, he said there would be a three-fold increase under this head. About the up-gradation of primary schools to middle and middle schools to high schools, he stated Rs 2 billion had been kept for this purpose in the proposed budget.
While complying with Punjab chief minister''s firm belief that an exemplary network of roads was necessary for future development of the province particularly linking of rural roads to district main roads net work, the provincial finance minister said the Punjab government had kept Rs 8 billion for this in the Budget 2004-05.
He said with the increase of Rs 4 billion, the Punjab government would spend Rs 68 billion on local governments in the proposed budget for 2004-05, adding that Rs 10 billion would be spent on providing houses to civil servants of Grade 1 to 22 in the province in next two-year.
Dilating on Finance Bill 2004-5, he said no new tax has been introduced in proposed Budget 2004-2005. He, however, said that changes in certain taxes, including token tax, and the increase of Rs 10 in driving test fees were proposed in the Finance Bill.
The government has also proposed to slash stamp duty on Memorandum of Articles of Association of private companies, and reduce Stamp Duty on sale and purchase of urban property from five to two percent. The reduction in stamp duty on sale and purchase of property in rural areas from 4 to 2 percent has also been proposed in budget 2004-05.
The rate of professional tax on doctors is also being brought to the level of such tax being levied on lawyers. In order to provide a cushion to Pak film industry, entertainment duty is also being reduced from 30 percent to 15 percent in the province, he added.
Praising the government for passing the Punjab Destitute and Neglected Children Act - 2004 in the Punjab Assembly recently, he said the provincial government has approved a grant of Rs 200 million under Gender Reform Action Programme, adding: "Our government has another laurel of restoring development fund for minorities."
The provincial finance minister said as sixth National Finance Award was yet not in completion, but hoped that the federal government would give a grant equal to rise in salaries of civil servants on the occasion.
He also presented the Supplementary Budget of Punjab for 2003-04 in the assembly on the occasion.
Comments
Comments are closed.