The Punjab Caretaker government has presented a Rs1719.3 billion budget, under Article 126 of the Constitution of Pakistan, for the first four months of Financial Year 2023-24. The budget includes a 30% pay raise for government employees. The provincial government will receive Rs 881 billion in tax receipts from the federal government, with its own contribution totalling Rs 194 billion, and no new taxes have been introduced.
Allocations for development expenditures amount to Rs 325 billion, including 4800 ongoing projects, with 2500 projects expected to be completed in the next four months. The Education and Health sectors will receive Rs 195.1 billion and Rs 183.7 billion respectively, representing a 31% increase in budget allocation for both sectors.
In a first for Punjab, a Journalist Endowment Fund of Rs 1 billion has been established to ensure the well-being of journalists across the province. The government has allocated Rs 721 billion for salaries and pensions and has introduced a 30% adhoc relief allowance on the basic salary of government employees, as well as a 5% increase in pension. Pensioners over 80 years old will receive a 20% increase in their pension.
The Punjab government owes Rs 600 billion to various banks for wheat procurement, and the debt is expected to rise to Rs 1100 billion and Rs 2000 billion by the end of 2023 and 2025, respectively. The Caretaker Chief Minister has initiated the process of paying off the debt by approving the payment of Rs 600 billion in the next four months.
The four-month budget has been described by Caretaker Provincial Industries Minister SM Tanveer as people-friendly, and no new taxes have been imposed.
