LAHORE: The Punjab government is all set to present its budget on Friday (today) for the financial year 2019-20, having an estimated total outlay of Rs2.16 trillion, which includes development investment of something between Rs425bn and Rs450bn.
The Punjab government’s estimated total budget outlay is 6.65pc higher than the original estimates for the ongoing 2018-19 financial year.
It is learnt that the Punjab government is putting a major thrust on infrastructure and social sectors that may take a big share of the pie, at least 55pc of the total development budget.
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Ahead of the budget session at the Punjab Assembly, the Punjab Cabinet will meet in the morning and approve the budget for 2019-20 and finance bill 2019.
The provincial government, in line with the federal government’s move, has decided to impose 10pc cut on the salaries of provincial ministers. The matter has been reflected on the cabinet agenda for final approval.
Since the PTI government came in with a narrative to uplift the so-far ignored south Punjab, the provincial government decided to do ring-fencing of development funds of three divisions of south Punjab – Multan, Bahawalpur and Dera Ghazi Khan.
The cabinet will also discuss the revised estimates for 2018-19 and budget estimates for 2019-20 with regard to development budget, current budget and receipts.
The cabinet is also scheduled to approve the supplementary grants for 2018-19 before going to the Punjab Assembly’s budget session.
Since the PTI government is all out to expand its tax base and collect the maximum revenue, it is scheduled to approve rules/notification under sections 5 and 76 of the Punjab Sales Tax Act 2012. Following the approval, the Punjab Sales Tax Act 2012 rules/notification will be laid before the Punjab Assembly.
The Punjab government is expecting its share of Rs1.5 trillion from the federal divisible pool as against current financial year’s original share of Rs1.27tr.
Sources say the Punjab government is expecting Rs368.7bn provincial tax and non-tax receipts for the next financial year.
According to the break-up, Punjab expects Rs283bn from taxes and Rs85bn from non-tax resources.
It is learnt that the Punjab government is expecting Rs27bn from foreign project assistance, Rs33.5bn current capital receipts and Rs237.7bn loans for food (wheat) procurement.
Published in Dawn, June 14th, 2019