The Punjab government on Friday tabled a Rs 654.75 billion-budget for the fiscal year 2011-12 with a development outlay of Rs 220 billion. The provincial government has raised the token tax on cars with an engine capacity of 1000CC and above, and also decided to tax elite clubs, swimming pools and farmhouses.
The government also aims at launching a yellow cab scheme and has allocated Rs 4.5 billion for the project. Under its development budget, the government would spend Rs 23.3 billion and Rs 34.90 billion in the health and education sectors, respectively, and has allocated Rs 9 billion for the power sector.
The Punjab government has also increased salaries of government employees by 15 percent. Pensions have been raised by up to 20 percent, with employees retiring before June 30, 2002 getting a 20 percent raise and those retiring on July 1, 2002 onwards eligible for a 15 percent increase. The government has also decided to give conveyance allowance to all public servants. The budget speech was made by Punjab Minority Affairs Minister Kamran Michael, who has the additional charge of the provincial Finance Ministry. He said non-development expenditure had been decreased by 12 percent, while development expenditures would be enhanced by 14 percent.
He said the government would launch the “Punjab Rozgar Scheme”, under which the government “will give 20,000 yellow cabs to unemployed people and the project had been allocated Rs 4.5 billion. The government will also give Rs 20,000 interest-free loans to the unemployed people under the scheme”. The minister said veterinary and agriculture graduates would be given land for development. The education sector in Punjab would get Rs 62 billion and eight new Daanish Schools would be constructed in the rural areas at a cost of Rs 3 billion.
Michael said the health sector would get Rs 48.8 billion. He said the government also planned to give five-marla plots to the poor people of the province, free of cost. The minister said Rs 70 billion had been earmarked for South Punjab, adding that the GST on services had been reduced from 17 percent to 16 percent.