PUNJAB BUDGET COMMENTARY 2021
18 June 2021
Overview
Overall the Punjab Finance Bill has provided a way for streamlining the impacts of Covid-19 pandemic through multiple interventions in the form of multifold increase in health education and development expenditures through an agenda of Social Economic Growth and Development and to uplift the quality of living of ordinary persons.
Set with a total outlay of Rs. 2,652 billion, the proposed Punjab Budget, sets a local tax revenue target of Rs. 272 billion, in addition to receipts from federal government amount to Rs 1684 billion, capital receipts of Rs 565 billion and non-tax revenue of Rs 132 billion. Further the overall current revenue expenditure amounts to Rs 1428 billion, whereas the current capital expenditure and current development expenditure is planned at Rs 540 billion and 560 billion respectively with a provincial surplus of Rs 125 billion.
The major emphasis has been laid down to uplift the physical infrastructure relating to hospitals and health center across Punjab and significant focus has also been made to improve education facilities across Punjab by planning to open up new colleges and universities.
In order to equalize the development expenditure across province of Punjab an announcement for a separate development plan for South Punjab has been made wherein thirty-four percent of annual development plan has been set-aside for South Punjab. Further, in order to elevate industrial development in the province various incentive programs for development of Small and Medium Entities has been introduced.
Moreover, relief has been extended to ease out suffering of marginalized community by opening up facilitation center for basic necessities. Infrastructure development in the form of roads and highways has also been planned to increase the connectivity within the Province. Relief measures have been provided to various services sectors by relaxing the standard rate of tax for ten services to a reduced rate of five percent.
The approach of the Punjab Government is to facilitate the ordinary persons by spending major chunk of development expenditure over health, education, industries development, skills development, environment protection, construction of homes, tourism development, zones development and increasing the connectivity of roads.
BDO EBRAHIM & CO.
DATED: JUNE 16, 2020