Highlights of Punjab budget 20-21

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Punjab Finance Minister Makhdoom Hashim Javan Bakht has presented the budget 2020-21 in the Punjab Assembly with a total outlay of Rs2240 billion on Monday, 15th June 2020. Details of allocations and salient features are as below.

Budget at a glance

  • Rs280 billion has been allocated for the health sector
  • Rs12billion has been set aside for Sehat Insaf Card program
  • Rs391 billion rupees allocated for education
  • Rs1 billion has been reserved for Naya Pakistan Housing Programme
  • The development budget for Punjab is Rs 337 billion
  • Rs77.6 has been reserved for infrastructure development
  • The salary budget has been frozen at Rs337.60bn
  • Rs13 billion has been allocated for corona control.

MAJOR INITIATIVES OF THE GOVERNMENT

IRRIGATION 

• Construction of Jalalpur Canal – Rs. 32.72 Bn 

• Remodeling of SMB Link Canal & enhancing capacity of Mailsi Syphon – Rs. 4.03 Bn 

• Rehabilitation of Islam Barrage – Rs. 2.9 Bn 

• Rehabilitation of Irrigation Infrastructure under NDMRF – Rs. 1.25 Bn 

SOCIAL WELFARE & BAIT UL MAAL 

• Establishment of Violence Against Women Centre at Rawalpindi & Lahore – Rs. 19 Mn 

• Establishment of Panagah at all Divisional HQs Punjab – Rs. 231.2 Mn 

• Establishment of Centre for Disabled (Nasheman) at Faisalabad & Bahawalpur – Rs. 30.7 Mn 

PUBLIC PRIVATE PARTNERSHIP PROJECTS 

• Leh Expressway, Rawalpindi to Islamabad – Rs.55 Bn 

• Weaving City at M-3 Industrial City, Faisalabad – Rs.5 Bn 

• Installation of Water Meters in Lahore Rs. 10.3 Bn 

• Dualization of Multan Vehari Road – Rs.14.2 Bn 

• Rawalpindi Ring Road – Rs. 61 Bn 

• Lahore Ring Road Southern Loop – Rs. 24 Bn 

• Combined Effluent Treatment Plants (Quaid e Azam and Sundar Industrial Estate, Lahore) – Rs. 6.2 Bn 

FOREST 

• Ten Billion Tree Tsunami Program (Phase-I) – Rs. 1.5 Bn 

• Afforestation of blank areas in Irrigated Plantations of Punjab – Rs. 101.5 Mn 

• Green Pakistan Program – Rs. 260.5 Mn 

HOUSING & PUBLIC HEALTH ENGINEERING 

• Naya Pakistan Housing Program (approx. 2.5 million housing units in Punjab) – Rs. 1 Bn 

• Provision of clean drinking water through Punjab Aab-e-Pak Authority – Rs. 2.5 Bn 

• Uplift of Water Supply & Sanitation Infrastructure in Underdeveloped Areas – Rs. 350 Mn 

• Construction of Eastern Wastewater Treatment Plant Faisalabad City – Rs. 4 Bn 

• Rehabilitation of Sewerage System in Jhang – Rs. 1.26 Bn 

LAW & ORDER AND EMERGENCY SERVICES 

• Provision of Rescue 1122 Service in 62 remaining Tehsils of Punjab – Rs. 4.16 Bn 

• Provision of Motorbike Ambulance Service in remaining 27 Districts of Punjab – Rs. 1.3 Bn 

• PPIC-3 Rawalpindi Centre – Rs. 9.2 Bn 

TRANSPORT 

• Subsidy for Orange Line Metro Train Project (OLMT) Fares – Rs. 4.4 Bn 

• Subsidy on Metrobuses Fares – Rs. 8.1 Bn 

• Establishment of Axle Load Management Regime in Punjab – Rs. 180 Mn 

HIGHLIGHTS OF THE BUDGET 

Finance Department Government of the Punjab 99211082, 99212223 www.finance.punjab.gov.pk This year’s Budget making exercise was a challenging and daunting task. Covid-19 Pandemic created unprecedented financial crunch and great economic uncertainty. Finance Department responded 

HEADLINES 

• Total Budget Outlay 2020-21 is Rs. 2,240.7 Bn. to this challenge with prudent financial management, enhanced allocations for the Health Sector, and acute austerity measures for non-essential services while simultaneously ensuring releases for Development Expenditure. Timely distribution of cash grants under Social Protection to the marginalized segments of society was 

• Development Budget for 2020- 21 is Rs. 337 Bn which is 32% higher from last year’s revised ADP of Rs. 255.03 Bn. 

ensured. 

» Foreign funded Projects/Programs 

is Rs. 133.7 Bn. The highlights of Budget 2020-21 are fiscal discipline, impetus to 

» Innovative Financing is Rs. 25 Bn. the economy, prudent austerity, participatory budget making and 

• Current Budget is Rs. 1,318.3 Bn up Framework for Rolling Expenditure control for efficient spending throughout the year. Social sector spending for welfare of the 

from Rs. 1,298.8 Bn. which is only 1.5% higher than last year. people of Punjab and tapping private investments by means of Public Private Partnership are envisaged and made an integral part of the Budget. 

• Tax Relief Package of more than Rs. 56.5 Bn to provide breather to COVID-19 affected Economy. 

2020-21 Government of the Punjab 

SALIENT FEATURES OF THE BUDGET 2020-21 

Estimated 

No increase 

Framework TAX Provincial 

in Salary and for Rolling Surplus Pension of Expenditure 

INCLUSIVE AND PARTICIPATORY BUDGETING 

A sizeable majority has favoured Government’s initiatives 

PACKAGE RELIEF Rs 18 Bn 

budgeted at Provincial to preempt Rs. 125 Bn Government potential Employees 

headwinds and adjust spending 

ALLOCATION OF SUFFICIENT FUNDS TO MITIGATE EFFECTS OF COVID-19 IN FY 2019-20 

Employment Generation 12% 

Agriculture & Livestock 4% Rs. 25.22 Bn Tax Relief Package 

Rs. 56.5 Bn 

Note: Figures of Energy and Transport Departments have not been incorporated 

Rs. 708 Mn 

18.9% Total Expenditure 

Rs. 8.4 Bn 

Rs. 5.2 Bn 

Rs. 6.7 Bn 

Rs. 4.2 Bn 

Insaaf Imdad 

Specialized 

Primary 

Punjab Disaster 

Zakat Program 

Healthcare 

Healthcare 

Management 

Department Department 

Department 

Authority 

Infrastructure Development 4% 

Education 22% 

Environmental Protection 3% 

Social Protection 6% 

Forestry 2% Salary Increment & Employment 

Administrative Promotion 

Reforms 5% 19% 

Economic Revival 8% 

Healthcare 15% 

2020-21 

MAJOR INCREASES IN DEPARTMENTAL ALLOCATIONS IN FY 2020-21 

2019-20 

500 

33.7% Total 500 

19% Total Expenditure 34% Expenditure 

Total Expenditure 

400 

26% Total Expenditure 

300 

21.5% Expenditure 

Total 400 

25.6% Total Expenditure 

300 

21.4% Expenditure Total 200 

200 

100 

100 

0 Salary Pension PFC Service Delivery 

Salary Pension PFC Service Delivery 

FBR Target Rs. 4,963 Bn (Punjab’s share Rs. 1,433 Bn) 

IMPACT & RESPONSE TO COVID-19 IN FY 2019-20 

SHORTFALL DUE TO COVID-19 

• COVID-19 Pandemic has created an unprecedented situation leading to great uncertainty in Revenue Collection 

• Shortfall of Rs. 579 Bn (Federal Divisible Pool Rs. 473 Bn + Own Source Revenue Rs. 106 Bn) 

CURRENT BUDGET (IN PKR Bn) 

OWN SOURCE REVENUE (TAX & NON-TAX) (IN PKR Bn) 

BE 2019-20 RE 2019-20 BE 2020-21 

PRA 166.5 105 125 

BOR 81.32 62.5 56 

EXCISE & TAXATION 39.7 23 32.4 

NON-TAX 93.4 89.4 96.2 

TOTAL 380.92 280.5 317.1 

(IN PKR Bn) 

1.0 

Infrastructure Cess (PIDC) 

3.1 

Property Tax (UIPT) 

1.4 

Sales 20+ Service Tax on 

Sectors 

0.2 

Professional Tax 

2.3 

Electricity Duty 

10.0 

Stamp Duty (Urban Areas) 

PRIMARY & SECONDARY HEALTHCARE 

• Integrated Program for Communicable Disease Control Punjab – Rs. 200 Mn 

• Provision of Free Medicines – Rs. 15.7 Bn 

• Punjab Health Facility Management Company (PHFMC) – Rs. 6 Bn 

• Expanded Program for Immunization (EPI) – Rs. 5.7 Bn 

• Establishment of 200 bedded Mother & Child Health Hospitals at Rajanpur, Layyah & Mianwali – Rs. 720 Mn 

• PM Health Initiative – Rs. 2.7 Bn 

• Pro Poor Patients Treatment on CM’s Directives – Rs. 600 Mn 

Monthly releases instead of quarterly releases 

Demand Driven Model versus Traditional Supply We 

Driven Relief Plan 

Valued Your Opinions 

Frontloading/Backloading of the Priority Sectors based on requirements 

Participatory Course Correction-more than two Statements of FISCAL DISCIPLINE DURING FY 2019-20 

Excess and Surrenders 

• Regretted Supplementary Grants of over Rs. 61 Bn 

• Austerity Committee regretted 60% requests for purchase of new vehicles from allocated budget resulting in savings of over Rs. 1.5 Bn 

Additional resources for Development were made available through enhanced engagement with International Development Partners – Foreign Loan / Grant 

COMMUNICATION & WORKS Portfolio increased from Rs. 60.5 Bn (FY 19-20) to Rs. 133.7 Bn (FY 20-21) 

• Rural Accessibility Program (Phase – 2) – Rs. 10 Bn New Development Approach by tapping Private Investment in ADP – A number of business plans approved, PPP Projects 

• Dualization of Dina – Mangla Road – Rs. 300 Mn worth Rs. 165 Bn will be launched. 

• Development Package of Mianwali having 42 Roads. – Rs. 2.1 Bn 

Establishment and operationalization of South Punjab Secretariat as promised. 

• Construction of flyover at Nadirabad Phatak to Industrial Estate, Multan – Rs. 300 Mn 

• Arterial Roads Improvement Program – Rs. 1 Bn Resilience to revenue and expenditure shocks 

135.9 148.5 350 119 Primary Health 

Specialized 

School Health 

Education Police (IN PKR Bn) 

Provincial Own Source Revenue Rs. 317.1 Bn 

CORONA RELATED INTERVENTIONS IN FY 2020-21 

Punjab Rozgar 

Rs. 9.5 Bn 

COVID-19 Specific Block Allocations 

Rs. 10 Bn 

Provision of COVID-19 funds to SH&ME 

Rs. 3 Bn 

Funds for Infection Control Program 

Rs. 943 Mn 

MAJOR INITIATIVES OF THE GOVERNMENT (This is not an exhaustive list) 

SPECIALIZED HEALTHCARE & MEDICAL EDUCATION 

• Establishment of Tertiary Care Hospital-Nishtar-II, Multan – Rs. 1 Bn 

• Provision of Missing Specialties for Up-gradation of DHQ Hospital to Teaching Hospital Gujranwala – Rs. 500 Mn 

• Health Insurance Program, Punjab (potential beneficiaries – 5.3 mn families) – Rs. 12 Bn 

• Establishment of Sardar Fateh Muhammad Khan Buzdar Institute of Cardiology, D.G. Khan – Rs. 1 Bn 

• Allocation for COVID-19 Prevention and Control – Rs. 3 Bn 

• Provision of free medicines – Rs. 22 Bn 

HIGHER EDUCATION 

• University of Chakwal – Rs. 95 Mn 

• Baba Gurunanak University, Nankana Sahib (Phase-I) – Rs. 50 Mn 

• Establishment of Ghazi University, D.G. Khan – Rs. 70 Mn 

• Establishment of Thal University at Bhakkar – Rs. 30 Mn 

• Chief Minister’s Merit Scholarships (CMMS) – Rs. 540 Mn 

AGRICULTURE 

• National Program for enhancement of Crop productivity of Wheat, Rice, Sugarcane & Oil Seeds – Rs. 1.68 Bn 

• Subsidy on Agricultural Inputs Rs. 4 Bn 

• Interest Free Loan Scheme for Farmers – Rs. 1.86 Bn 

• Fasal Bima Scheme (Crop Insurance) – Rs. 1.30 Bn 

SOCIAL PROTECTION 

• Ba-Himmat Buzurg Program (for elderly people having age 65 and above) – Rs. 3.6 Bn 

• Sila-e-Funn Program (for poor artists aged 50 and above) – Rs. 100 Mn 

• Masawaat Program for Transgenders – Rs. 200 Mn 

• Nai Zindagi Program (Medical & Psychological rehabilitation for Acid Attack Victims) Rs. 200 Mn 

• Sarparast Program (for widows & orphans) – Rs. 1.5 Bn 

• Khiraj ush Shuhada Program (for families of Civilian Martyrs of Terrorist Attacks) – Rs. 150 Mn 

• Hamqadam Program (for persons with disabilities) – Rs. 3.6 Bn 

• Zevar-e-Taleem Program (for school going poor girls) – Rs. 5 Bn

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