• Wednesday, November 20, 2019

Punjab finds hard to show Rs 148 billion surplus income this year by PTI Govt.

Discussion in 'Pakistani Siasat' started by AsianUnion, May 24, 2019.

  1. AsianUnion

    AsianUnion SENIOR MEMBER

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    PTI Punjab finds hard to show Rs 148 billion surplus income this year

    Punjab CM Usman Buzdar. PHOTO: INP

    LAHORE: Economic managers of Punjab have expressed their reservations about the target of Rs148-billion surplus set by the federal government for the province for the current fiscal year.

    The primary reason behind this is the federal government itself, which has not been able to pass on the full share of Punjab under the federal divisible pool. Federal Govt not giving Punjab's full share of the province required.

    Punjab had estimated a share of Rs1.276 trillion from Islamabad for the ongoing fiscal year out of the general revenue receipts of Rs1.653 trillion. This slowdown in economic growth and a shortfall in tax collection by the Federal Board of Revenue (FBR) during 2018-19 can put Punjab in trouble to show a surplus amount in its account and also to allocate Annual Development Programme (ADP) funds for the next fiscal year.

    Over 35% development funds to be allocated for southern Punjab

    “The slowdown in the economy has impacted the overall tax collection in the country,” said Punjab Finance Minister Makhdoom Hashim Jawan Bakht, while talking to a group of journalists. If the FBR concludes their tax collection target at Rs4 trillion for this fiscal year, then Punjab could face a shortfall of over Rs120 billion under the Federal Divisible Pool; hence it would not be able to show a surplus amount to help Islamabad. “If the federal government transfers this amount to us then we will show the surplus of Rs148 billion, if they fail, we cannot,” the provincial finance minister said.

    “We will keep the size of ADP for the next fiscal year higher than this year, but it could not be much higher as almost 75% of provincial revenues came through FDP and Islamabad is way behind revenue collection target,” he added.

    According to Bakht, tax collection in the provincial tax collecting unit – Punjab Revenue Authority (PRA) – has also declined primarily in the past one year due to suspension in tax collection on telecom operators.

    “Almost one-third of PRA revenues used to come from the telecom sector, which has declined especially in the prepaid-card category,” he said. Apart from the telecom sector decline, the drop in ADP spending also affected the tax collection.

    Senate panel stresses more funds for south Punjab

    “The government’s economic stimulus and its own public spending do collect some taxes and when mega projects and international loans land in the province, the government also charges tax on them. These things were missing in the past one year and when ADP falls short, it also impacts tax collections,” the minister said.

    Nevertheless, Bakht said, for the upcoming fiscal year, they have devised some strategies to increase the provincial tax base. “For the next year, we are being quite innovative as we are keeping in view the affluence level to which we should propose tax measures and also review the existing ones,” Bakht said adding, “We will also keep in view the ignored areas, where we may bring betterment in terms of tax collection.”

    Talking about the budget, he said the upcoming budget will focus on the agriculture sector, and the construction sector, primarily to feed the Prime Minister’s initiative of low-income housing schemes.

    He said, “We will focus on healthy economy by focusing on social sectors. The big change this time will be the balancing act to ensure regional equalisation for the province of 110-million population.”

    Published in The Express Tribune, May 23rd, 2019.

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  2. maithil

    maithil FULL MEMBER

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  4. AsianUnion

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    Punjab had estimated a share of Rs1.276 trillion from Islamabad for the ongoing fiscal year out of the general revenue receipts of Rs1.653 trillion. This slowdown in economic growth and a shortfall in tax collection by the Federal Board of Revenue (FBR) during 2018-19 can put Punjab in trouble to show a surplus amount in its account and also to allocate Annual Development Programme (ADP) funds for the next fiscal year.

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  5. AsianUnion

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    Failure of PTI, problems for Imran Khan, Usman Buzdar less competence

    You don’t Deliver, You don’t Stay: PM Khan reshuffles his Cabinet again

    The Federal Cabinet is expected to see a major reshuffle. The former Finance Minister is expected to re-join the cabinet along with Babar Awan and many more changes are expected to be done.

    Prime Minister Imran Khan is expected to make a few changes in his cabinet. According to some well-placed source, the Prime Minister is not happy with some Ministers and their performance has dismayed him. Moreover, PTI’s senior leader and former Finance Minister Asad Umar is expected to be inducted in the cabinet with a new assignment.

    There are some reports which suggest that the behavior of some federal Ministers was not in line with the government policy. PM Khan has repeatedly said that the ministers have been given responsibilities to look into the problems people are facing, “nobody is here to rule,” he has clarified.

    Federal cabinet Reshuffle: Following Changes in Portfolios along with New Ministers https://t.co/EHPVBSFT5a pic.twitter.com/iB3uwt1d56

    — Times of lsIamabad (@TimesofIslambad) September 30, 2019

    A source said that when one of the MNAs complained that Ministers did not entertain his complaints regarding people’s problems, the Prime Minister expressed dissatisfaction and said: “those who will not deliver will be removed”.

    PM also said in the meeting that he is looking at the performance of every Minister and will take the decision accordingly. The meeting, co-chaired by the Prime Minister and Foreign Minister Shah Mehmood Qureshi at the Parliament House, also discussed Mr. Khan’s recent visit to the United States and address at the UN General Assembly where he successfully raised the issue of India-held Jammu and Kashmir.

    While talking to local media, Asad Umar said the Prime Minister had hinted at his [Mr. Umar’s] return to the cabinet. “When I informed the Prime Minister that I have ample time but no work to do, he said I will be given a new assignment very soon,” Mr. Umar added.

    It has also been reported that Prime Minister Khan reprimanded PTI lawmaker Noor Alam Khan for delivering a speech in the National Assembly recently on the price hike.




    According to media reports, portfolios of some federal Ministers like Shafqat Mehmood, Zubeda Jalal, Ijaz Shah, Fawad Chaudhry, Firdous Ashiq Awan, and Nadeem Afzal Chan could be changed. PTI leader Babar Awan is likely to get some important position in the government.

    Some sources claim that the premier is unhappy over the performance of Ms. Awan who replaced Fawad Ch. Fawad Chaudhry was believed to be someone who was working diligently to free PTV and offer a framework of control and regulation for the private media industry. However, he was removed from the post for reasons unknown and given the portfolio of the Federal Minister for Science and Technology. He is also on the hit list and likely to be given another portfolio.

    Some PTI leaders are also arguing for to have Dr. Shahbaz Gill in the federal cabinet who previously served as a spokesperson for the Chief Minister Punjab, Usman Buzdar, and defended his government despite the dismal state of affairs. Dr. Gill who has been a professor at a university in the United States of America a vocal PTI leader who defended the party with grace. He is expected to return to the Centre.

    Read more: Naya Pakistan: New Cabinet and the future of old-PTI

    It has also been reported that Prime Minister Khan reprimanded PTI lawmaker Noor Alam Khan for delivering a speech in the National Assembly recently on the price hike.

    Recently, a reshuffle also took place in the Punjab where Ministers were changed. Mian Aslam Iqbal has been given additional charge of the provincial Information and Culture ministries to replace Syed Sumsam Bukhari.

    Punjab Minister for Industries, Commerce & Investment Mian Aslam Iqbal given additional charge of Information & Culture ministry#DunyaNews #Dunyaupdates

    — Dunya News (@DunyaNews) July 19, 2019



    Provincial Minister for Law, Parliamentary Affairs, Local Bodies, and Community Development Basharat Raja has been assigned the Ministry of Social Welfare and Bait-Ul-Mal, according to the sources. Provincial Minister for Sports Muhammad Taimur Khan has been given the tourism department, while Mohammad Ajmal has been made Member of the Chief Minister’s Inspection Team.

    The performance of the Buzdar-led government in Punjab has been a big challenge for the PTI to defend. The government has largely failed to materialize its promise of change and human development. Many people now believe that the incumbent government in Punjab lacks fresh thinking and new ideas to deal with perennial and complex issues.

    If PM @ImranKhanPTI performs at home half of what he did in UNGA, he would become unmatched. How could a person, who delivered such a spectacular speech at UN, insist on keeping @UsmanAKBuzdar as CM Punjab. Country’s governance and economy direly need the PM we saw at UNGA.

    — Ansar Abbasi (@AnsarAAbbasi) September 28, 2019