Budget 2012-13: Punjab government sets aside huge amount for debt management, pensions

The Punjab government has estimated an amount of Rs 71,920.081 million in the budget 2012-13 for Debt management and pensions. Budget estimates under Debt Management and pensions for the FY 2012-13 are pitched at Rs 71,920.081 million against Rs 59,363.513 million in FY 2011-12, official sources told Business Recorder.
In this classification sources said, expenditures on Debt Servicing including payment of interest on Foreign and Domestic Debt, General Provident Fund and interest on blocked loan of government of Punjab payable to State Bank of Pakistan are included.
According to the sources, in the category of Interest payments, an amount of Rs 16,183.881 million has been provided against the budget estimates of Rs 18,867.298 million in FY2011-12. Decrease on this account is due to deferment/rescheduling of Rs 2,000.000 million payable to State Bank of Pakistan on account of blocked account against an additional equity injection of Rs 2,000.000 million to Bank of Punjab by Punjab government to meet its statutory liquidity requirements, the sources said.
Sources said that expenditure on pension is pitched at Rs 55,736.200 million in FY2012-13 against the revised estimate of Rs 51,490.038 million under grant PC21028-Pension in FY 2011-12. Increase in allocations on this account have been made to absorb the impact of 20 percent increase in pension benefits for FY 2012-13 announced in the Federal Budget to be adopted by Provincial government, the sources said.