Finance Minister Punjab, Tanvir Ashraf Kaira announced the provincial budget on Monday. In his speech, Mr Kaira rightly pointed out that growth in Punjab is a major contributing factor to the national economy. Unlike the federal budget, this one was packed with topics that directly affect the citizens of the province, complete with actionable initiatives.
To the relief of the common man, the Rs583 billion outlays for FY11 do not include any new taxes. It includes Rs193 billion of development expenditures, a record for the provincial government. Finding budget documents of the websites of relevant departments is a tricky task for analysts. However, the department of finance at the provincial government was forthright in putting up all the documents pertaining to next years expenditure. Perhaps, other provinces and the federation can learn a thing or two from the big brother there.
Most important in any budget, is the outlay for development expenditures. Compared to revised figures from the outgoing year, the provincial government is increasing the allocation by 44 percent for the upcoming year.
Social sector development and infrastructure development together occupied almost 85 percent under this head, which is vital for a sustainable economy.
Education remained the first priority of Shahbaz Sharifs government. In FY11, 15.8 percent of development expenditure will be spent on educating those 41 percent living in Punjab who do not have access to education.
Under the 18th amendment, provision of primary education to all children is a mandatory requirement for the administration. Mr Kaira announced the provinces resolve of achieving that goal by 2015.
Health spending in FY11 is expected to become Rs43.8 billion, 16 percent higher than the outgoing year. Plans include opening three new public medical colleges in the province.
Perhaps the government has realized that the recent spate of violence in the province has a correlation with unemployment. With that in mind, youth employment programmes and allotments of agricultural land to qualified students is on offer, together with development assistance on lease for a specified period of time.
Pro-poor schemes amounting to Rs21 billion- up from Rs15 billion - have been allocated. "Sasti roti", directed at poor neighbourhoods, is estimated to cost Rs5 billion while a subsidy on wheat amounting to Rs12 billion would surely provide some relief to the common man.
While salaries of government officials were increased by the centre prescribed formula, the provincial government one-upped the federal cabinet by reducing cabinet salaries by 25 percent.
In addition, CM secretariat budget is to be slashed by the same percentage. Leading from the front is the only way for leaders to expect austerity from the public.
There was at least one area where the policies of the government are going to prove counterproductive. Like Sindh, Punjab halved the Capital Value Tax, largely benefitting the elite to whom a cut in taxes on property transactions makes little or no difference.
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