Under Article 126 of the Constitution of the Islamic Republic of Pakistan, caretaker cabinet can authorize expenditure of four months from the Provincial Consolidated Fund. Caretaker government has approved 10% increase in basic pay with revision of House Rent Allowance on the same lines of Federal Government. Similarly, 10% increase in pension has been approved. Allocations are proposed to be increased by 28.6% in School Education, 38.6% in Primary and Secondary Healthcare and 25.8% in Specialized Healthcare and Medical Education. At the end of FY 2018-19, there will be no negative cash balance, no throw forward of liabilities into next fiscal year. Expenditure control measures have been approved in the Budget 2018-19, such as no further net recruitment.
Caretaker Minister for Finance Zia Haider Rizvi expressed these views while addressing the media regarding interim budget. Revenue generation by provincial government (Tax and Non-Tax) has increased by 16% to Rs. 359 billion for FY 2018-19 compared to last year. Provincial Minister for Information and Culture Ahmed Waqas Riaz, Secretary Finance Sheikh Hamid, Secretary Planning and Development Iftekhar Sahu, Secretary Bilal Butt, Chairman PRA Raheel Ahmed Siddiqui and President Lahore Chamber of Commerce and Industry Malik Tahir Javed were present on this occasion. The Minister said that next year combined tax collection target is proposed to be increased by 29%.
In the Budget 2018-19, there is special focus on Health and Education Sectors, as they benefit the common man directly, he added. These two are the priority sectors and massive allocations have been made in them. Development and Non-Development Expenditures have been fixed for four months on pro-rata basis. However, there are certain front loaded expenditures which have been catered for in the next year four months’ expenditure authorization like election expenditures, natural calamities (flood, dengue etc.). Moreover, in salary there is an increase of 21.6% from previous year, Pension has been increased by 31.5% and PFC has been increased by 27.8%. He further said that unnecessary expenditures have been controlled during next four months to control budget deficit. ADP is likely to reduce due to increase in the service delivery expenditures, salaries and pension. Although there is some space in the National Economic Council (NEC) limit for borrowing by the province but the decision on the same will be given by the Elected Government. Moreover, important decisions on the development side have been deferred for the elected government.