LAHORE: The Punjab government will present over Rs 2.4 trillion budget for the fiscal year 2020-21 on Monday (tomorrow).
Punjab Finance Minister Makhdoom Hashim Jawan Bakhat is expected to submit the provincial budget for the fiscal year 2020-21 in the provincial assembly.
According to sources, the volume of upcoming Punjab Budget, which will be tax-free, is proposed above 2220 billion rupees with an allocation of 1780 billion for current expenditure.
Citing the budget proposals, sources said the annual development program of the province will be 337 billion rupees with a proposal to enhance the agriculture income tax rate. An increase in salaries and pensions in line with the federal government decisions which is expected to 10 percent ad hoc relief, sources said.
Two sectors, Health and education have been treated as a priority in budget preparation, sources added. The provincial budget proposes the allocation of Rs. 125 billion for primary health and Rs. 130 billion for specialized health sector with a seven percent increase in allocation.
Due to COVID-19 impact, the provincial government is considering reducing the Punjab Sales Tax on Service to the majority of the services until December 2020 besides extending the tax exemption given to the number of sectors in the backdrop of Covid-19 will also continue.
The revenue target for the Punjab Revenue Authority is being fixed at Rs 125.4 billion, Board of Revenue Rs65 billion, Excise and Taxation Rs 32 billion since the car sales are sharply declined for the last fiscal year.
The government is estimating Rs 365 billion allocations for the salaries budget, Rs 260.7 billion for pension budget, Rs24 billion for subsidies, and Rs 276 billion for service delivery expenditures which are estimated an increase of around 22 percent from last year of Rs 226.5 billion.
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