Provincial Finance Minister Makhdoom Hashim Jawan Bakht presented the provincial budget 2021-22 before assembly today for approval with a total volume of Rs. 2653 billion which is more than 18 percent as compared with the current budget. Rs. 560 billion is allocated for the development programme which is more than 66 percent as compared with the previous year. This huge 66 percent increase shows the success of the strong economic policies of the PTI government. Meanwhile, Rs. 189 billion is earmarked for south Punjab, being 34 percent of the ADP. It is important to note that a separate development programme has been chalked out for south Punjab which will ensure transparent utilization of funds. The ADP has been designed in accordance with the governmental priorities aiming at economic development, judicious distribution of resources and social sector development. RS. 205.50 billion is earmarked for social sector development comprising health and education. This amount is 110 percent more than the ongoing financial year. Similarly, Rs. 145.40 billion is proposed for infrastructure development which is 87 percent more than the current financial year. Along with it, Rs. 91.41 billion is proposed for a special programme. This amount is 92 percent higher as compared with the current financial year. The PTI government has allocated Rs. 57.90 billion for industries, agriculture, livestock, tourism and forestry etc to ensure economic growth. This amount is 234 percent higher than the ongoing financial year. It may be added here that the district development programme, universal health insurance programme, revamping of roads infrastructure, the establishment of mother and child healthcare hospitals, up-gradation of schools, special incentives for economic growth, development of the workforce, public housing schemes and environment and green Pakistan are some of the important outlines of development programmes. Meanwhile, an allocation of ten billion rupees is proposed for corona vaccination and an additional amount of ten billion rupees is also outlined for the promotion of economic activities and ease of doing business. The government has proposed to enhance the Punjab Ehsas Programme grant from Rs. 12 billion to 18 billion along with enhancement of minimum wage from Rs. 17500 to Rs. 20000. A ten percent increase has been proposed in salaries of government employees and a 25 percent special allowance will be given to employees that do not receive any additional incentives along with their salaries. It is satisfying that the Punjab government has decided to continue the tax relief in the next financial year for the development of business activities and a colossal tax relief of 50 billion is proposed in the next budget. The ratio of stamp duty under the head of taxes of the board of revenue will remain at one percent and this incentive of 40 billion will encourage new investment in the construction sector. The ratio of Punjab sales tax on more than 25 services was decreased from 16 percent to 5 percent in an ongoing financial year. This will also be continued in the next financial year.
The services include small hotels and guest houses, shadi halls, lawns, pindals and shamiana services and caterers, IT services, tour operators, gyms, property dealers, rent a car service, cable TV operators and treatment of leather and textile, commission agents of agri produce, auditing, accounting and tax consultancies services, photography and parking services etc. Similarly, it is also proposed to decrease sales tax from 16 percent to 5 percent on ten additional services in the next financial year including beauty parlours, fashion designers, home chefs, architects, laundries and dry cleaners, supply of machinery warehouses, dress designers and rental bulldozers etc. It is further proposed to decrease the tax ratio from 19.5 to 16 percent on call centres. During the current financial year, the tax ratio on cash payment to restaurants was16 percent while a 5 percent tax ratio was imposed through credit or debit cards payments. This helped in the documentation of the economy. A 5 percent tax ratio is proposed on payment through QR code and mobile wallet. Property tax can be deposited in two instalments in the next financial year to the excise and taxation department. It is proposed to limit the imposed surcharge penalty for property tax and motor vehicle tax to the last 2 quarters of the next financial year. Exemption up to 50 percent and 75 percent will be given in registration fee and token fee for encouraging sales and purchase of motor vehicles. The target of recovery of federal taxes is fixed at 5829 billion rupees and Punjab will be giving 1684 billion rupees under NFC award which will be more than 18 percent than the current financial year. The target of provincial duties and taxes is fixed at 405 billion which is 28 percent more than the current financial year. Meanwhile, the estimates of current expenditures are calculated at 1428 billion rupees.