Better economic indicators helped present growth-oriented budget: Hashim

LAHORE: An improvement in economic indicators helped the Punjab government present a growth-oriented budget for the fiscal year 2021-22 in line with the PTI manifesto.

This is the first budget which is aligning with the PTI manifesto in three years as the government was clearing the baggage and financial indiscipline created by the PMLN government in the province.

This was said by Punjab Finance Minister Hashim Jawan Bakht while addressing the post-budget conference here at the Chief Minister's House on Tuesday. He was flanked by the chief secretary Punjab, Secretary Finance Iftikhar Ali Sahoo, Chairman Planning and Development Abdullah Sanbal, Chairman Punjab Revenue Authority (PRA) Zain-ul-Abideen Sahi and other officials.

The minister said the economic growth was 3.94 per cent and hoped that the government policies will take it to above 4 per cent in the next fiscal year. Furthermore, the government has given a Rs 2.5 trillion relief package during the COVID-19 pandemic and provided financial assistance to 45 per cent population under the Ehsaas Programme.

Similarly, a Rs 80 billion subsidy was given on wheat to offset the inflationary pressure from flour (staple food) as the support price of wheat was increased to Rs 1,800 per maund from Rs 1400 per maund. The government is monitoring the rise in global food prices and allocated resources to keep minimal impact of them on domestic consumers, he added. Highlighting the salient features of the budget, he pointed out that the government increased the Annual Development Programme (ADP) size by 66 per cent in this fiscal year. The government has not increased the ADP budget but also planned how to ensure maximum utilization of it. For this, it has planned to release Rs 100 billion in the month of July while all development schemes announced in the development budget will be completed in two years. In the next fiscal year, focus will be on completing ongoing projects rather than starting new projects.

Appreciating the performance of the PRA, the minister said the PRA is a provincial revenue collecting agency in Pakistan, which registered a tremendous annual growth of 29 per cent till May. Further, the target of the PRA for the next financial year has been increased without increasing tax rate. On the contrary, the expansion of tax net and innovation in the tax collection system are on the rise.

Hashim pointed out that education, health and agriculture are flagship projects for the next financial year while no exhibitory project of self-projections or political mileage is developed. The government has allocated

Rs 80 billion for the Universal Health Insurance Scheme in the budget to provide a blanket cover to the population of Punjab. Further, more than 8,500 primary schools will be upgraded to elementary schools under the Insaf Afternoon School Programme. This is a paradigm shifting project and no such projects were made in the past, he claimed.

He said the Rs 360 billion District Development Programme will improve the public works schemes alongside employment creation in the construction sector. The government has earmarked Rs 100 billion for communications and works. Thus it will spend Rs 205 billion on public sector construction projects. He said the agriculture budget has been increased four times as investment in agriculture is essential to control inflation and ford security alongside exports of the country. There is the need to create a balance between demand and supply in the agricultural produce to keep the inflation in check, he remarked.

The government will encourage the representation of the private sector in agriculture and adoption of modern technology and techniques to increase productivity. Further, the Model Bazaar Authority was created for the permanent establishment of 332 model bazaars across the province. This will help control food inflation, he added.