LAHORE: PML-N has filed a charge sheet on the negative aspects of Punjab’s budget. According to reports, a debate is raging at the moment as to whether the budget was better during the PML-N regime or the PTI regime.
In the financial year 2013, the budget of the PML-N government was Rs 1,021 billion. While PML-N gave a budget of 1971 billion in 2018 which is an increase of 93% in 5 years. However, the fourth budget of the PTI government is Rs 2653 billion which is an increase of only 35% while inflation will be 42% by the end of Financial Year 2022.
Similarly, in FY 22, an increase of Rs. 412 billion has been made from the previous budget out of which Rs. 125 billion has been earmarked as a surplus for the federal government. Therefore, the actual increase of Rs 287 billion over the previous budget is only 12%.
Such experts say that the RE of the Federal Divisible Pool for FY 21 is Rs 1354 billion when 30% is adjusted for inflation when it becomes Rs 1040 billion in 2018 as against Rs 1071 billion. Which is less than the amount received in 2018 after three years.
Similarly, the FDP budget for the fiscal year 2022 is Rs 1.683 billion, which is close to the budget for the fiscal year 2020 at Rs 1601 billion, despite the inflation rate of 21% in the last two years.
Proponents of the PML-N say that the PML-N has increased the provincial tax revenue by 152% to Rs 78 billion to Rs 197 billion in five years, while after three years, the PTI has been able to increase the tax revenue by only 14% and 228. It has collected billions of rupees.
Similarly, PML-N has increased non-tax revenue by 84% in five years and collected Rs 117 billion in 2018 while PTI has increased tax revenue alone by 10% and collected Rs 129.9 billion. Even the target of Rs 132 billion is very low.
During its five-year tenure, the PML-N increased Punjab’s revenue collection by 121 per cent from Rs 1,122 billion to Rs 315 billion.
PTI has increased its revenue collection by only 13% in the last three years from Rs 357 billion to Rs 357 billion. This figure of Rs 357 billion is highly questionable as the government has given Rs 265 billion as actual performance figures for the last 10 months. Were How can the government collect Rs 93 billion in the last two months?
The target of Rs 404 billion next year seems an undeniable target considering their three-year performance.
Economists affiliated to PML-N say that it is very unfortunate that Punjab is getting a budget of Rs 560 billion in the financial year 2022 while the development budget announced in the financial year 2018 was Rs 635 billion.
When these figures are adjusted for 30% inflation, in real terms, it is only Rs 430 billion, compared to Rs 635 billion. The announcement of shares of South Punjab amounted to Rs 189 billion was a modest 33% while in 2018 the PML-N allocated Rs 228 billion which was 36% of the total budget. South Punjab’s share has decreased in percentage terms.
Under the PML-N, the 2018 health development budget was Rs 45 billion in 2018, while PTI had allocated Rs 84 billion in FY22 as against Rs 30 billion last year, which was increased to Rs 58 billion. By April 2021, the actual consumption was only Rs 18 billion. How was Rs 40 billion spent in just 2 months?
The PML-N spent Rs 34 billion on the development of the education sector in 2018, while the PTI spent Rs 26 billion in FY 21 after three years, while the allocation for FY 22 was only Rs 62 billion. 31% while 61 billion has been allocated for 2018.
During the PML-N era of Punjab’s government, Rs 9 billion was spent on police, public order and safety development in FY18, of which only Rs 2.2 billion was allocated in FY 21. Only Rs 390 million was spent in the first 10 months of FY21. The budget allocation for FY 22 is only Rs 2.5 billion.
