Punjab has saved Rs 8 billion from the current expenditure that has helped the government to run its affairs smoothly after drop in provincial tax collection by 40 percent and Rs 14 billion reduction in federal transfers. This was stated by Punjab Finance Minister Tanvir Ashraf Kiara during a pre-budget briefing to the media here Friday.
He said the provincial revenue collection would range around Rs 24 billion against the budgetary target of Rs 40 billion. He said this reduction is in line with the ongoing recession in the country. He said car registration and property tax are the main avenues of revenue collection in the province. He said car production in the country has declined by fifty percent that is reflected in steep decline in car registration.
Property business, he added has also suffered during this period, resulting in few property transfers, he added. He said provincial revenue target for the next fiscal year would be higher than the actual tax collection of present year, based on realistic assumption. However he added it would be less that Rs 40 billion target fixed this fiscal year.
Kiara said that this does not however, absolve the provincial tax collectors from their responsibility to collect fair taxes. He said the capacity of revenue collectors would be enhanced. He said government is contemplating to form a Provincial Revenue Board to streamline tax collection.
Provincial Finance Minister said that privatisation of Punjab government assets was not possible this fiscal year. He said the Punjab government thus could not generate the targeted Rs 17 billion under this head. He said a new Board of Privatisation headed by a private sector person would be formed, who would pursue privatisation next year.
The utilisation of development budget this fiscal year, he added would be between Rs 130-145 billion although Rs 152 billion development funds has been released. The outlay of next budget would be around Rs 500 billion he said, adding that the development budget for next year would be higher than this years' allocation of Rs 160 billion. He said Rs 5 billion allocated for Danish school scheme have remained unutilised this year.
Kaira said the thrust of the next year's budget would be on education and health. He said agriculture and Industry would also be priority of the Punjab government. He said law enforcing agencies budget would be enhanced by around Rs 10 billion to Rs 40 billion. He said Rs 8 billion out of this would be to finance the increase in salaries while the balance amount would be utilised for upgrading their equipment.
He said Rs 2-2.5 billion has been earmarked for the Lahore Mass Transit Project. He said feasibility report of the project is already complete and the allocated amount would be used for preliminary work. The project, he added would cost $2 billion and the Iranian government has assured full facilitation and assistance in this regard. The Iranians, he added have offered free engineering services and technical expertise.
He said industrialisation would get full government support. The federal government, he added would provide five years duty free status to any industrial estate established by provincial government or private sector at an area of 500 acres or over.
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