Govt envisages Rs392bn subsidy and relief package.

LAHORE -- The Punjab government has proposed an allocation of Rs392.08 billion for subsidy and relief with a claim to protect commoners from the sharp impact of inflation and announced an increase of 15 per cent in salary and 5pc in pension of the government employees.

The budget document [earlier approved by the provincial cabinet] shows that Rs200bn have been set aside to provide subsidies on flour to ensure the commodity would be available to the masses at Rs490 per 10kg bag in the province. Previously the 10kg flour bag was available for Rs650.

Of Rs392.08bn, the Punjab government has allocated Rs190.58bn for subsidy and relief package. The subsidy and relief package includes Rs100bn for social protection initiative (utility support programme), Rs5bn for subsidy on ghee, Rs2bn for Ramazan Package, Rs17.32bn for agriculture, Rs17.89bn for transport, Rs0.44bn e-credit facility for small farmers, Rs39.93bn for free medicines, Rs2bn for drought and plantation, and Rs6bn environmental/climate change challenges.

15pc increase in salary, 5pc in pension likely

The Punjab government has also decided to increase salaries and pension of employees with 15pc increase in salary and 5pc in pension for government employees alongside merging the previous ad hoc increases into the basic salary. By doing it, almost a 20pc...