BUDGET 2022-23 Punjab follows KP, Sindh, rolls out Rs3.2tr expansionary budget.

LAHORE -- In line with the fiscally expansionary budgets presented by Sindh and Khyber Pakhtunkhwa, the coalition government in Punjab, led by the PML-N, also proposed a budget that seeks to significantly boost development spending, continue tax cuts and discounts, increase its subsidy bill to provide relief to the inflation-stricken people, raise taxes and levies on real estate and luxury houses and allow 15 per cent raise in salaries of civil servants.

The Punjab budget with a total outlay of more than Rs3.2 trillion, including the highest-ever development spending of Rs685 billion, proposes increased development and non-development expenditure of Rs485.26bn and Rs470bn - 10pc and 27pc higher than last year's original estimates, respectively.

Punjab expects to receive Rs2.02tr from the federal divisible pool as its share under the National Finance Commission (NFC) Award. The total revenue has been estimated at Rs3.2tr, including the NFC share, Rs337bn as provincial tax, Rs163.5bn as provincial non-tax, Rs705.1bn as capital and Rs61.6bn as foreign project assistance. However, the total expense has been estimated at Rs3.1tr, making it a surplus budget with Rs125bn. The expense includes Rs685bn as Annual Development Programme, Rs1.7tr as current revenue and Rs704.5bn as current capital.

'The increased expenditure of Rs485.26bn includes Rs428.56bn and Rs56.70bn for non-development and development expenses, respectively. The overall education budget outlay will include Rs421.6bn for school education, Rs59.07bn for higher education, Rs1.52bn for special education and Rs3.59bn for literacy and non-formal education,' provincial minister Awais Leghari said in his budget speech.

Similarly, Rs470bn, according to Mr Leghari, have been proposed for the health sector that includes Rs296bn and Rs174.5bn for non-development and development expenditures, respectively. The minister said with a 24pc increase, Punjab expects over Rs500.5bn in provincial revenues that includes a major contribution of Rs190bn from the Punjab Revenue Authority.

From the ADP, 40pc has been allocated to the social sector, 24pc to infrastructure, 6pc to the production sector and 2pc to the services sector.

The budget also proposes a 15pc increase in salary of public sector employees, 5pc raise in the pensions of retired officials and Rs109.1bn for foreign-funded projects. It also envisages various flagship projects to be launched in 2022-23, including Rs9bn for a Road...