TC May-Jun 2021 Issue

TRADE CHRONICLE
Punjab government presents Rs2.65
trillion budget for 2021-22
Punjab Finance Minister Hashim Jawan
Bakht presented the budget for the
fiscal year 2021-22 with an estimated
outlay of Rs 2,653 billion which is 18
percent more than the current fiscal
year’s budget and
The government expected to get Rs
5,829 billion from the federal Divisible
Pool and is expected to get Rs 1,684
billion from the National Finance
Commission Award, which is 18
percent more than the current fiscal
year’s allocation.
In his speech, Hashim said a target
of Rs 405 billion had been set for
provincial tax collection, which is 28
percent more than the current fiscal
year. The current expenditure estimates
in the budget is around Rs 1,428 billion.
The government has increased the
development budget by 66 percent,
which shows that it is committed to
bringing economic prosperity to the
province. He said the government
allocated Rs 189 billion for the South
Punjab, which is 34 percent of the total
The Sindh government presents
Rs1.48trn budget for the province
The Sindh government on June 15
presented Rs1.477 trillion budget for
the financial year 2021-22 with an
estimated deficit of Rs25.738 billion.
However, the Sindh government didn’t
introduce any new tax in the budget,
whereas it proposed 20 percent
increase in the salaries of government
employees and 10 percent rise in
pensions. The provincial government
also proposed the minimum wage
at Rs.25,000 against the existing
Rs17,500, in the new fiscal year.
annual development
budget of Punjab.
The government has
allocated Rs 12 billion
for the development of the industrial
sector and more than Rs 28 billion for
Lahore, considering its importance as a
business hub, he added.
He also said that the health and
education sector is the priority of the
government as it has allocated Rs
370 billion for the health sector. The
government has allocated Rs 96 billion
for development budget of the health
sector, which is 182 % more than the
current fiscal year, and it is initiating
universal health insurance program
with the allocation of Rs 82 billion.
Under this program, 100% population
of Punjab will get free and quality
health services. It is expected that
government will issue health cards to
110 million people of the province.
Moreover, the minister said, the
government has allocated Rs 442
billion for the education sector, which
is Rs 51 billion more than the current
year, and more than Rs 54 billion has
been earmarked for the development
budget while Rs 388 billion has been
allocated for
the current
expenditure.
More than
Rs 6 for the
up-gradation
of schools
and Rs 23
billion for the
schools run
by Punjab
Education
Foundation
and Punjab
Terming it a ‘citizens
budget,’ Sindh Chief
Minister Syed Murad Ali
Shah announced that the
total budget outlay for Financial Year
2021-22 is estimated at Rs1.477 trillion
against a budget estimate Rs1.241
trillion for the current FY, showing an
overall increase of 19 percent.
The current expenditure of the province
has been projected at Rs.1.14 trillion,
which includes a current revenue
expenditure of Rs.1.089 trillion and
current capital expenditure of Rs.59.49
billion in the budget. “This is 78% of
the total expenditure of the province
Education Initiative Management
Authority billion has been reserved.
The government has allocated Rs 15
billion for higher education which is
285% more than the current fiscal year.
In order to ensure food security and
increase agricultural productivity, the
minister added, the government has
made a whopping increase of over
300% in the agriculture development
projects. It allocated more than Rs31
billion for the agriculture transformation
and Rs 100 billion for Agriculture
Transmission Plan. Moreover, Rs
55 billion has been set aside for the
irrigation sector.
For livestock and dairy development
projects, Rs5 billion have been
allocated, and for the improvement
of watercourses, Rs5 billion have
been earmarked. For environmental
protection, an allocation of Rs4 billion
has been made, out of which Rs2.5
billion will go to the Prime Minister’s
flagship 10 billion tree tsunami project.
The government has earmarked Rs 380
billion for the construction, repair and
expansion of roads in the province. In
order to provide relief to the taxpayers
and revival of business, the government
has proposed tax concessions of Rs
50 billion. There will be no change
in the rate of stamp duty, and it will
remain 1% only. The ratio of sales
tax on services will remain 5%. The
government has proposed a reduction
of the tax ratio on call centres from 19
% to 16 %. The government has also
proposed a 10% increase in salaries
and pension of provincial employees
besides increasing the minimum wage
of workers from Rs17,500 to Rs20,000.
(Courtesy – Business recorder)
and shows an increase of 14%
overestimates of Rs.1 trillion for last
year,” Shah said.
The development expenditure of
the province in the budget has been
proposed at Rs.329.032 billion, which
include Rs.222.5 billion for Provincial
ADP and Rs.30.0 billion for Districts
ADP, foreign project the assistance of
Rs.71.16 billion and Rs.5.4 billion from
Federal PSDP Grant for schemes being
executed by the Government of Sindh.,
The Chief Minister said that a 20%
increase had been proposed for the
government employees and a 10% rise
TRADE CHRONICLE - May - Jun - 2021 - Page # 13