KP, Punjab focus on development, Sindh on patronage
Three provincial governments announced their budgets on Monday. Provincial governments run by Punjab, Sindh and Khyber Pakthunkhwa (KP) governments, each run by a different political party were announced. Some would suggest that it was the first time that the difference in mandate and manifesto came out strongly: the Pakistan Tehreek-i-Insaf (PTI) with its governance and social service focused manifesto in KP, the Pakistan Muslim League-Nawaz (PML-N) in Punjab with its focus on grand projects and austerity, and the Pakistan People Pakistan’s (PPP) in Sindh with more patronage projects on offer. The difference between the total budgets in each province is stark and dependent upon the economic strength of them. Punjab announced the largest provincial budget of Rs871 billion. Sindh’s provincial budget laid out an outlay of Rs 617 billion while KP’s budget was Rs344 billion.
A lot of eyes and ears were focusing on the PTI, which is in government the first time, and according to some observers the budget is the first “KP budget with a clear economic programme.” In comparison to the KP Finance Minister Sirajul Haq’s budget speech, the Awami National Party used the budget speech to blame the province’s problems on Islamabad and then merely recited the budget numbers. Haq, however, set out the PTI’s policy priorities, connected them to the budget number and spoke of how these policies would bear fruit. Apart from imposing a one percent tax on Afghan transit trade, no new tax was announced. The formation of a tax authority, already in place in Sindh and Punjab, was announced while a Rescue 1122 service would also be established. Rs22billion and Rs67billion were allocated for health and education respectively, while an education emergency was announced with the formation of an Education Advisory Commission is on the cards. How this would work out with the Jamaat-i-Islami (JI) in coalition and most of the province’s education shifted to madrassas is a question that will need answering.
Punjab’s Rs26 billion deficit budget imposes taxes on the rich, especially on the luxury immoveable property (houses) in urban areas, fashion and music shows, horse racing and circus. Allocating eight per cent apiece to agriculture and infrastructure respectively, the Punjab government has chosen to let the federal government handle the electricity crisis. In Sindh, however, around 40 per cent of the development budget was taken up by discretionary grants. That is sticking to the trodden path of doling out patronage to the select few. Some new taxes have however been imposed as well as practices to make the Sindh Taxation Authority more effective, however, the GST rate was kept at 16 percent. The common features amongst the budgets were that minimum pay was increased from Rs9,000 to Rs10,000 per month. However, implementation will remain a key concern. With Punjab not following KP and Sindh’s 15 per cent increase in government salaries, some protests have been seen in the province. Three different forms of governance have emerged. It remains to be seen which will succeed.
