Punjab govt presents Rs5.4 trillion ‘tax-free’ budget

LAHORE: Punjab Finance Minister Mian Mujtuba Shujaur Rehman presented the provincial ‘tax-free’ budget for the fiscal year 2024-25 with a total outlay of 5.44 trillion amid protest by the Sunni Ittehad Council (SIC), ARY News reported.

The finance minister laid before the House a Rs 5446 billion budget with a surplus of Rs 630 billion. He said that 77 new mega projects will be launched under the annual development progemme.

The Punjab government also proposed a raise of up to 25 percent in its employees’ salaries while the pension of retired employees is proposed to be raised by 15 percent. A minimum wage of Rs 37,000 for workers has been proposed.

He said that the total revenue collection is estimated at Rs 4643.4 billion while Rs 3,683.10 billion is expected to be received under the National Finance Commission (NFC) Award.

The provincial receipts are estimated at Rs 960.30 billion (54 percent higher than the current fiscal year) for the financial year 2024-25.

Mian Mujtuba Shujaur Rehman said that Punjab Revenue Authority (PRA) has been given a revenue collection target of Rs 300 billion (25 percent higher than FY2023-24), the Board of Revenue Rs 105 billion (six per cent higher), and Excise Department Rs 57 billion (25pc higher), while under the head of non-tax revenue, Rs 488.40 billion collection is estimated which is 111pc higher than the FY 2023-24.

The finance minister termed the provincial budget ‘tax-free, progressive and pro-business’ in the given circumstances.

In his budget speech, Shujaur Rehman claimed that no new taxes are imposed while existing taxes are not increased in the budget.

According to the budget documents, Rs 6 billion is earmarked for the laptop scheme, Rs 5 billion endowment fund, Rs 268 billion for supplementary grants, Rs 26 billion for the supplementary budget statement of the financial year 2023-24, Rs 26 billion rupees for agricultural equipment, and Rs 10 billion Kisan card.

Similarly, the Punjab government fixed Rs 30 billion for CM green tractor program, Rs 80 billion for CM district SGD program, Rs 2 billion for livestock card, Rs 2 billion for Himmat and Nighaban card, and Rs 26 billion for restructuring education project.

Salaries, pension, minimum wage raised

The finance minister said that Rs 603.1 billion would be spent on salaries while Rs 451.4 billion on pension during the financial year 2024-25.

Just like the centre, the Punjab government also proposed a raise of up to 25 percent its employees’ salaries while the pension of retired employees is proposed to be raised by 15 percent. The workers’ minimum wage has been proposed to be fixed at Rs 37,000 from Rs 32,000.

Annual Development Programme

The Punjab government earmarked ‘record’ Rs 842 billion for uplift works across the province under the annual development programme. This year’s development budget is 28 per cent higher than the outgoing FY 2023-24’s budgetary allocation of Rs 655 billion. Chief Minister Punjab Maryam Nawaz in a statement on X said that although the provincial government set aside Rs 842 billion for development works, the uplift of over one trillion would be carried out. “Biggest ever annual development program (842 billion) which will cross 1 trillion Insha’Allah,” she posted on X.

Free solar system scheme

The finance minister in his speech said a Rs9.5 billion has been earmarked for Chief Minister Roshan Gharana Programme which he said would provide relief to people in the province affected by exorbitant power bills. Shujaur Rehman said that in the first phase, the Punjab government would provide free solar systems to those who consume up to 100 electricity units.