Caretaker Cabinet can authorize expenditure of 4 months from the Provincial Consolidated Fund.

Under Article 126 of the Constitution of the Islamic Republic of Pakistan; Caretaker Cabinet can authorize expenditure of 4 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. Allocations are proposed to be increased by 28.6% in School Education, 38.6%in Primary & Secondary Healthcare and 25.8% in Specialized Healthcare & Medical Education. At the end of FY 2018-19, there will be no negative cash balance, no throw forward of liabilities into next FY. 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 & Culture Ahmed Waqas Riaz, Secretary Finance Sheikh Hamid, Secretary Planning & Development Iftikhar Sahu, Secretary Bilal Butt, Chairman PRA Raheel Ahmed Siddiqui and President Lahore Chamber of Commerce & 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%. Revised Estimates 2017-18& Budget Estimates for 2018-19 for the Provincial Taxes: 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. Revised Estimates 2017-18 & Budget Estimates for 2018-19: 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 04 months’ expenditure authorization like election expenditures, natural calamities (flood, dengue etc.) Moreover, in Salary there is a 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 04 months so as 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.

Tuesday, June 26, 2018