Post-budget press conference: ‘Punjab to review expenditures every month due to Covid-19’

LAHORE: Punjab Finance Minister Hashim Jawan Bakht on Tuesday said if the federal government paid the pending receivables of the province, a much better budget could be presented while the government did the best effort for this budget in the existing Covid-19 pandemic.

“The decision of not increasing the salaries and pension of government employees was very difficult but the government did not have any other option. The government will review the expenditures on a monthly basis during the Covid-19 pandemic and take financial decisions accordingly,” he said addressing the post-budget press conference here at 90 Shahrah-e-Quaid-e-Azam on Tuesday. Chairman Planning and Development Hamid Yaqoob Sheikh and Secretary Finance Abdullah Sumbal were present on the occasion.

“We are continuously asking the federal government for the repayment of Rs 128 billion Punjab receivables as the amount was pending for the last many years under different heads and if Punjab got the receivables, it could present a much better budget. However, the federal government has its own financial limitations,” the minister observed.

He said globally no one knows how the Covid-19 will impact and for how long itpersists, so the government will make decisions on a monthly basis in accordance with the need so that relief to the public and development projects continues. “The country is passing through a critical period following the Covid-19 pandemic and the provincial government gave the best budget in the current scenario by focusing on the areas hit by the coronavirus and protecting the economy and vulnerable groups,” Hashim claimed.

The Punjab government did not compromise on the development portfolio despite witnessing reduction in the revenue while the Public Private Partnership Authority was established for implementation of PPP projects. The southern loop of the Lahore Ring Road will be completed under a PPP project with Rs 10 billion in the fiscal year 2020-21while the PPP projects were given a five-year tax holiday as well. He said the government gave Rs 56 billion tax relief package in the budget, besides giving priority to the construction sector to boost 16 attached industries with it.

He announced that a new project, Paradigm, was introduced in the budget with the name Grow Punjab and a Rs 106 billion package was allocated to cope with Covid-19 under this head. The project will be helpful in improving the health sector, besides controlling Covid-19. The government will review the expenditure on a monthly basis due to the Covid-19 pandemic while all recommendations would be considered. He said the government did not launch new projects for the sake of making the budget speech attractive. The government has made a substantial increase in the health and education budget.

Hashim said the government also introduced small projects of community development including tree plantation, roads and canals lining and others in order to create employment opportunities for the lower segments of the society. He said the Punjab government like the federal government also lowered revenue generation targets while the scope of the foreign-funded and assisted projects was increased to meet the gap. Further, expanding the taxpayer base was focused in the budget.

To a question, the minister said the government allocated Rs 9 billion for the Orange Line Metro Train (OLMT) project, out of which Rs 4 billion were allocated for subsidy and 4.5 billion for the payment of mark-up of the project loan. The minister stressed the OLMT is a white elephant for which the government will need billions of rupees subsidy every year.

Responding to another question, the minister said that the Firdous Market underpass was a Lahore Development Authority (LDA) project, and every development authority was responsible for development projects in its jurisdictions.