Salient Features of Rs 782.8 Billion Punjab Budget

Lahore: Tax revenue collected by the Federal Government is distributed between the Federation and the Provinces and amongst the Provinces on the basis of NFC Award. This share of the province under the NFC Award is known as Federal Divisible Pool Transfer. Table below reflects the budget estimate, revised estimate of FY 2011-12 along with estimated FBR receipts for FY 2012-13:

FBR Revenue
(Rs. in million)
Particulars

BE 2011-12

RE 2011-12

BE 2012-13

I. Direct Taxes

743,600.00

745,000.00

932,000.00

Income Tax

718,600.00

730,000.00

914,000.00

Workers Welfare Fund

25,000.00

15,000.00

18,000.00

II.Indirect Taxes

1,208,700.00

1,207,000.00

1,449,000.00

Customs

206,400.00

215,000.00

247,500.00

Sales Tax

836,700.00

852,030.00

1,076,500.00

Federal Excise

165,600.00

139,970.00

125,000.00

Total

1,952,300.00

1,952,000.00

2,381,000.00

The proceeds of Workers Welfare Fund and Excise Duty on Natural Gas do not form part of the Federal Divisible Pool

Under the 7th National Finance Commission Award, the percentage share of the provinces in the Divisible Pool is 57.5% w.e.f. FY 2011-12. Due to increase in the nominal size of the Federal Divisible Pool, transfers to Punjab are expected to increase to Rs.650,735.911 million during FY 2012-13 as compared to Budget Estimate for FY 2011-12 of Rs.531,528.327 million. The share of the Divisible Pool Taxes for FY 2012-13 is based on the Federal Board of Revenue’s target of Rs.2,381,000.000 million. This would actually mean that the BE 2012-13 is pitched to be 22% higher than RE 2011-12.

Under the 7th NFC Award, the Divisible Pool now comprises Taxes on Income, Customs Duties, Sales Tax, Federal Excise excluding Excise Duty on Gas charged at well head, and any other tax levied by the Federal Government. With the exception of Federal Excise Duty on gas, the taxes listed above are distributed between the provinces and the Federal Government in the ratios given below:

Vertical Distribution of Resources
Provincial share Federal share

57.50%

42.50%

The provincial share is divided amongst the provinces in the ratios given below. This share was decided on the basis of a multiple criteria based on population, inverse population density, revenue and poverty.

Horizontal Distribution of Resources
Punjab   Sindh    Khyber Balochistan
   Pakhtunkhwa

51.74%

 24.55%

   14.62%

9.09%

The major increase in the Divisible Pool Taxes is expected from the Income Tax and Sales Tax. These two taxes collectively contribute 83.6% of Punjab’s share from the Federal Divisible Pool. The balance 16.4% is contributed by Land Customs and Federal Excise.

Straight Transfers

Under Article 161 of the Constitution and the NFC Award, Straight Transfers to the provinces include:

i) The net proceeds of the Federal excise duty on natural gas

ii) Net proceeds of royalty on crude oil and natural gas assigned to the provinces under the Constitution.

The budget estimates 2012-13 of Straight Transfers has been pitched at Rs.6,585.092 million compared to budget estimate 2011-12 of Rs.5,423.944 million. Straight Transfers comprise a smaller portion of the financing package to Punjab in comparison with other provinces such as Sindh and Balochistan.

Therefore, Punjab, unlike smaller provinces, puts a greater premium on federal revenue collection and its own provincial revenue collection to finance its expenditures. It may also be mentioned that the size of Straight Transfers expected  during financial year 2012-13 is lower than the RE 2011-12, mainly due to expected decrease in production of Oil and Gas in Punjab.

OVERVIEW OF BUDGET 2012-13:

In Financial Year 2012-13, total financial outlay of the government has been estimated at Rs.782,859.871million. In FY 2012-13, size of the Annual Development Program has been pitched at Rs.250,000.000 million indicating an increase of Rs.30,000.000 million over ADP for FY2011-12. An allocation of Rs.532,859.871 million has been proposed for current expenditure in FY2012-13, against revised budget estimates of Rs. 467,993.236 million in FY 2011-12.

Despite persistent inflationary trends, increase in salary, allowances and pension of employees of the government, allocations of development expenditure have been protected by adopting a considerable increase in development budget in comparison with the Annual Development Program for FY 2011-12.

BUDGET ESTIMATES 2012-13

(Rs. in million)

BE 2011-12

RE 2011-12

BE 2012-13

General Revenue Receipts

655,699.097

667,441.763

780,674.805

Federal Divisible Pool Taxes

531,528.327

533,830.744

650,735.911

Provincial Own Receipts

114,240.439

111,370.744

121,206.802

Tax Receipts

88,517.300

80,862.928

95,014.294

Non-Tax Receipts

25,723.139

30,507.816

26,192.508

Federal Transfers

9,930.331

22,240.275

8,732.092

Straight Transfers

5,423.944

8,163.431

6,585.092

Federal Grants

3,481.387

13,392.844

2,030.000

Grants (Foreign)

1,025.000

684.000

117.000

Revenue / Current Expenditure

434,749.818

467,993.236

532,859.871

A – Net Revenue Account-Surplus(+)/ Deficit(-)

220,949.279

199,448.527

247,814.934

Current Capital Receipts

35,315.192

2,804.052

15,558.620

Recoveries of Loans and Advances

5,218.758

538.926

6,816.186

Permanent Debt – Domestic

0.434

0.035

0.434

Permanent Debt (Access to Justice Program)

59.008

Recoveries of Investment

7.783

Foreign Loans

30,096.000

2,198.300

8,742.000

Current Capital Expenditure

54,557.766

48,186.602

55,039.484

Public Debt

0.434

0.035

0.434

Repayment of Principal (Domestic + Foreign
Debt)

13,545.785

19,278.233

16,564.819

Investments

11,000.000

7,000.000

8,500.000

Loans and Advances (BOP, PPCBL,
Principal repayment of Blocked Account,

29,987.166

21,886.050

29,947.396

Loan to other financial institutions etc.)
State Trading in Medical Stores

24.381

22.284

26.835

B – Net Capital Account-Surplus(+)/ Deficit (-)

(19,242.574)

(45,382.550)

(39,480.864)

C – Surplus for Development (A+B)

201,706.705

154,065.977

208,334.070

D – ADP Financing Items

18,293.295

11,445.196

41,665.930

Foreign Project Assistance

18,610.000

11,397.000

11,487.514

Operational Shortfall

30,000.000

Public Account

(316.705)

48.196

178.416

Total Resource for Development (C + D)

220,000.000

165,511.173

250,000.000

ADP

188,000.000

159,186.612

210,000.000

Other Development Expenditure

32,000.000

6,324.561

40,000.000

TEVTA / TEVTEC

2,000.000

2,112.192

1,500.000

Daanish School

3,000.000

2,000.000

Punjab Millennium Development Goals Program
(PMDGP)

8,500.000

5,500.000

Punjab Education Endowment Fund

2,000.000

2,000.000

2,000.000

Punjab Education Foundation

6,000.000

6,500.000

Financing of Vertical Program

5,000.000

PHAs

600.000

PLDC (Aashiana Housing Scheme)

2,000.000

PLDDB

500.000

Women Development

500.000

Sports and Youth

500.000

PSIC (Self Employment Scheme)

3,000.000

PIEDMC / FIEDMC

1,900.000

Innovation Development Fund

500.000

Punjab Technology University

1,000.000

PAMCO (LMC)

500.000

Internship Program

1,500.000

Establishment of Model Bazars

500.000

Loans to other non-financial institutions
(PIEDMC, FIEDMC, PLDC, SWMC, LMC,

6,440.000

PLDDB, PSIC etc.)
Low income housing

1,200.000

281.015

1,500.000

Population Welfare

2,860.000

1,931.354

3,000.000

Total Development

220,000.000

165,511.173

250,000.000

In Revised Estimates of development expenditure, where nil allocation is appearing in the statement, the amount has been accounted for in the revised estimates of current expenditure of respective function by taking an equivalent surrender from the amount appearing under other development expenditure.

Table below reflects the allocations for Current Revenue Expenditure and Development Expenditure of Punjab Government for the year 2011-12 and 2012-13.

CURRENT AND DEVELOPMENT EXPENDITURE

(Rs. in million)

CLASSIFICATION

BE 2011-12

RE 2011-12

BE 2012-13

A. CURRENT

434,749.818

467,993.236

532,859.871

General Public Services (including
transfers to Local Governments)

245,735.165

269,697.567

305,300.357

Public Order and Safety Affairs

69,244.576

75,700.040

81,864.264

Economic Affairs

61,600.671

48,603.066

71,684.904

Environment Protection

58.251

74.862

71.381

Housing and Community Amenities

2,639.981

3,016.710

3,296.079

Health

25,484.686

31,707.190

35,656.545

Recreational, Culture and Religion

1,022.538

1,431.239

1,478.413

Education Affairs and Services

27,141.130

33,573.988

31,307.272

Social Protection

1,822.820

4,188.574

2,200.656

B.DEVELOPMENT

220,000.000

165,511.173

250,000.000

ADP including operational shortfall

188,000.000

159,186.612

210,000.000

Financing Items of ADP

32,000.000

6,324.561

40,000.000

TOTAL EXPENDITURE (A+B)

654,749.818

633,504.409

782,859.871

REVENUE BUDGET

Revenue budget includes General Revenue Receipts and Revenue Expenditures. Table below summarizes the General Revenue Receipts.

GENERAL REVENUE RECEIPTS

(Rs. in Million)

BE 2011-12

RE 2011-12

BE 2012-13

General Revenue Receipts

655,699.097

667,441.763

780,674.805

Federal Divisible Pool Taxes

531,528.327

533,830.744

650,735.911

Provincial Own Receipts

114,240.439

111,370.744

121,206.802

Tax Receipts

88,517.300

80,862.928

95,014.294

Non-Tax Receipts

25,723.139

30,507.816

26,192.508

Federal Transfers

9,930.331

22,240.275

8,732.092

Straight Transfers

5,423.944

8,163.431

6,585.092

Federal Grants

3,481.387

13,392.844

2,030.000

Grants (Foreign)

1,025.000

684.000

117.000

Provincial Own Receipts

The Provincial Own Receipts consist of the following:

a) Tax Receipts

I. Receipts from Direct Taxes (Agricultural Income Tax, Property Tax, Land Revenue, Professional Tax, Capital Value Tax etc.)

II. Receipts from Indirect Taxes (Sales Tax on Services, Provincial Excise, Stamp Duties, Motor Vehicle Taxes, Electricity Duty etc.)

b) Non-Tax Receipts

I. Income from property and enterprises

II. Receipts from civil administration and other functions

III. Miscellaneous Receipts (other receipts excluding Federal Grants and Development Surcharges and Royalties

IV. Extraordinary Receipts

The estimates of Provincial Own Receipts are provided in Table below. The table shows that during FY 2011-12, the actual collection of Provincial Own Receipts was only 3.7% lower than the original budget estimates. This shortfall is primarily attributable to shortfall in GST on Services and Extra Ordinary Receipts. It may be worthwhile to add that both major revenue collecting departments of the Government i.e. Board of Revenue and Excise and Taxation have collectively achieved a growth of 17% in the first ten months of FY 2011-12 compared to corresponding period last financial year. It may be added that the tax collection target for FY 2011-12 excluding GST on Services was Rs.48,607.901 million. The RE 2011-12 of these taxes is Rs.44,295.980 million. In this way, the RE 2011-12 is quite close to the BE 2011-12 of taxes collected by the Government itself. The slight shortfall in Own Tax Collection is due to lesser than targeted growth in UIP Tax and Electricity Duty.

PROVINCIAL OWN RECEIPTS

(Rs. in Million)

RECEIPTS

BE 2011-12

RE 2011-12

BE 2012-13

a) Tax Receipts

88,517.300

80,862.928

95,014.294

i. Direct Taxes

22,960.562

20,766.641

25,311.940

ii. Indirect Taxes

65,556.738

60,096.287

69,702.354

b) Non-Tax Receipts

25,723.139

30,507.816

26,192.508

i. Income from Property and
Enterprises

6,560.677

6,644.274

5,797.890

ii. Receipts from Civil Administration
and other Functions

6,089.283

6,214.156

6,757.831

iii. Miscellaneous Receipts

13,073.179

17,649.386

13,636.787

Total Provincial Own Receipts

114,240.439

111,370.744

121,206.802

DEVELOPMENT REVENUE RECEIPTS:

Development Revenue Receipts are primarily grants from foreign multilaterals for specific development projects. The RE 2011-12 of Development Revenue Receipt was Rs.684.000 million compared to BE 2011-12 of Rs.1,025.000 million. The BE 2012-13 has been pitched at only Rs.117.000 million.

DEVELOPMENT REVENUE RECEIPT

(Rs. in Million)

Sr.
No. Particulars

BE 2011-12

RE 2011-12

BE 2012-13

1. Japanese Grant

32.000

32.000

2. Improvement of Water Supply in Faisalabad (JICA Assisted)

643.000

3. JICA-Punjab Water and Sanitation Academy,Lahore.

150.000

10.000

4. JICA-Retrieval of Sewerage and Drainage for Lahore City.

824.000

48.000

5. Australia-Optimizing Canal and groundwater Management to assist Water User Association in Maximizing Crop Production and Management Salinisation with Australia Assistance

14.000

9.000

7.000

6. EU-11723-Access to Justice for Poors, Punjab.

5.000

7. Up-gradation of Mechanical System of WASA, Faisalabad.

25.000

8. Non-formal Education Promotion Project (JICA).

27.000

Total Grant

1,025.000

684.000

117.000

CURRENT REVENUE EXPENDITURE

Table below summarises the Budget Estimates and Revised Estimates of Current Revenue Expenditure for FY 2011-12 along with Budget Estimates for FY 2012-13.

CURRENT REVENUE EXPENDITURE

(Rs. in Million)

CURRENT REVENUE EXPENDITURES

BE 2011-12

RE 2011-12

BE 2012-13

General Public Services (including transfers
to Local Governments)

245,735.165

269,697.567

305,300.357

Public Order and Safety Affairs

69,244.576

75,700.040

81,864.264

Economic Affairs

61,600.671

48,603.066

71,684.904

Environment Protection

58.251

74.862

71.381

Housing and Community Amenities

2,639.981

3,016.710

3,296.079

Health

25,484.686

31,707.190

35,656.545

Recreational, Culture and Religion

1,022.538

1,431.239

1,478.413

Education Affairs and Services

27,141.130

33,573.988

31,307.272

Social Protection

1,822.820

4,188.574

2,200.656

Total Revenue Expenditure

434,749.818

467,993.236

532,859.871

The budget estimates for financial year 2012-13 under important functions / sectors are explained as under:-

i) An allocation of Rs. 34,000.000 million has been made for subsidies and pro-poor initiatives in financial year 2012-13 against the budget estimates of Rs. 30,000.000 million in FY 2011-12.

ii) Transfers to Local Governments have been budgeted at Rs. 210,983.105 million in FY 2012-13 against budget estimate of Rs. 169,788.730 million in FY 2011-12. In this way, an additional sum of Rs. 41,194.375 million has been provided for Local Governments in FY 2012-13 showing an increase of 24.3% over budget estimates for FY 2011-12.

iii) Allocations for the Health Department have increased from Rs. 25,484.686 million in FY 2011-12 to Rs. 35,656.545 million in FY 2012-13 representing an increase of 40% over the budget estimates of FY 2011-12.

iv) Expenditure on the Education Sector has been estimated at Rs. 31,307.272 million in FY 2012-13 against Budget Estimates of Rs. 27,141.130 in FY 2011-12 showing increase of 15%.

v) Expenditure on Pension is pitched at Rs. 55,736.200 million in FY 2012-13 against the revised estimate of Rs.51,490.038 million under grant PC21028-Pension in FY2011-12. Increase in allocations on this account have been made to absorb the impact of 20% increase in pensionery benefits for FY 2012-13 announced in the Federal Budget to be adopted by Provincial Government.

vi) Expenditure on account of Public Order and Safety Affairs has been estimated at Rs. 81,864.264 million in FY 2012-13 against the budget estimate of Rs.69,244.576million in FY 2011-12 showing an increase of 18% in comparison with the FY2011-12.

ANNUAL DEVELOPMENT PROGRAMME 2012-13

Annual Development Programme (ADP) is composed of public investments made in different sectors of the economy in a given year by the Government. These investments are not only instrumental in accelerating economic growth and development but also define and open up economic opportunities for the private sector and other stakeholders. ADPwith its sectoral composition reflects the development priorities of the Government and thus, has a pivotal role in guiding the strategic direction of the provincial economy.

Annual Development Programme 2012-13 has been formulated within a Medium Term Development Framework (MTDF), a rolling plan providing development estimates for a three year period i.e. base year and the following two years.The main objectives of the Annual Development Programme 2012-13 continue to be to:

Achieve equitable growth embracing all classes, sectors and regions

Extend social sector coverage

Generate employment

Enhance productivity and competitiveness in the production sector

Encourage public private partnership

Infrastructure development, its re-habilitation and consolidation

Provide more resources for the less developed areas.

Annual Development Program is primarily financed through surpluses accruing from the revenue and capital accounts of the Provincial Government described above. Development Budget of the province has been pitched at Rs. 250,000.000 million for FY 2012-13 in comparison with the Rs.220,000.000 million for FY 2011-12 depicting an increase of Rs.30,000.000 million. However, in comparison with the revised estimates of Rs.165,511.173 million, there is an increase of Rs.84,488.827 million or 51%.

Table below shows the outlay of development budget of Government of the Punjab for last four years and allocations for FY 2012-13.

Development Budget

(Rs. in billion)

Year Development %
Budget
2008-09

160.000

2009-10

175.000

9%

2010-11

193.500

11%

2011-12

220.000

14%

2012-13

250.000

14%

Overall size of the ADP for FY 2012-13, Budget Estimates and Revised Estimates of development program is shown below:

DEVELOPMENT BUDGET FOR FY 2012-13, BE 2011-12 and RE 2011-12

(Rs. in Million)

Nomenclature

BE 2011-12

RE 2011-12

BE 2012-13

ADP

188,000.0

159,186.612

210,000.000

Other Development Expenditure

32,000.000

6,324.561

40,000.000

TEVTA / TEVTEC

2,000.000

2,112.192

1,500.000

Daanish School

3,000.000

2,000.000

Punjab Millennium Development Goals
Program (PMDGP)

8,500.000

5,500.000

Punjab Education Endowment Fund

2,000.000

2,000.000

2,000.000

Punjab Education Foundation

6,000.000

6,500.000

Financing of Vertical Program

5,000.000

PHAs

600.000

PLDC (Aashiana Housing Scheme)

2,000.000

PLDDB

500.000

Women Development

500.000

Sports and Youth

500.000

PSIC (Self Employment Scheme)

3,000.000

PIEDMC / FIEDMC

1,900.000

Innovation Development Fund

500.000

Punjab Technology University

1,000.000

PAMCO (LMC)

500.000

Internship Program

1,500.000

Establishment of Model Bazars

500.000

Loans to other non-financial institutions
(PIEDMC, FIEDMC, PLDC, SWMC,
LMC, PLDDB, PSIC etc.)

6,440.000

Low income housing

1,200.000

281.015

1,500.000

Population Welfare

2,860.000

1,931.354

3,000.000

Total Development

220,000.000

165,511.173

250,000.000

The important features and new initiatives included in ADP 2012-13 are:

Annual Development Programme within the Medium Term Framework

Adequate funding for foreign aided and mega projects

Allocation of Rs.86.7 billion for social sectors investments with major focus on education (Rs.25.0 billion) and health (Rs.16.5 billion)

Regional balance in allocation of resources with extra weight for less developed districts

Continued focus on undertaking projects that can be completed within one year to control throwforward

Continued strategic interventions in large cities to realize their potential as engines of growth and enabling medium cities to share the urbanization pressure

No token allocations for new schemes

Allocation of Rs.17.4 billion for District Development Packages

Allocation of Rs.14.0 billion for Women Empowerment initiatives

Allocation of Rs.11.0 billion for construction of Bus Rapid Transit System (BRTS)

Allocation of Rs10.5 billion for Southern Punjab Development Programme (SPDP)

Allocation of Rs.10.0 billion for investment in the energy sector to overcome power shortages in the Province

Allocation of Rs.4.0 billion for provision of Laptops to the students

Allocation of Rs2.0 billion for Green Tractor scheme for rural youth

Allocation of Rs.1.0 billion for Solar Tubewells / renewable energy

Allocation of Rs. 1.0billion for Solar Panles

Provision of Rs.1.0 billion for purchase of Buses for Women Colleges

Allocation of Rs.0.5 billion for Rural Ambulance Services

Sector wise comparison of the allocations of development programme in FY 2011-12 and FY 2012-13 is presented below:

Sector Wise Comparison of Development Programme 2011-12 and 2012-13

(Rs. in Million)

Original R.E Total %
S.No Sector Allocation (core) ADP Change
2011-12 ADP 2012-13 Over
2011-12 2011-12
(R.E)
1 2 3 4 5 6
SOCIAL SECTORS

78,635

59,160

86,461

46.15

1 Education

23,900

15,800

25,065

58.64

(i) School Education

14,500

9,300

15,000

61.29

(ii) Higher Education

6,500

5,000

6,650

33.00

(iii) Special Education

500

300

700

133.33

(iv) Literacy

800

600

915

52.50

(v) Sports

1,600

600

1,800

200.00

2 Health inc. Medical Colleges

16,300

11,500

16,500

43.48

3 Water Supply and Sanitation

10,000

9,000

9,886

9.84

4 Social Protection

935

360

1,200

233.33

(i) Social Welfare Department

480

195

237

21.75

(ii) PVTC

455

165

550

232.65

(iii) Women Development Department

413

5 Regional Planning

5,000

4,500

5,000

11.11

6 Devolved Planning

22,500

18,000

28,810

60.06

(i) Southern Punjab Development

Programme (SPDP)

10,000

7,500

8,300

10.67

(ii) Accelerated Southern Punjab Development Programme

2,200

(iii) LG and CD

7,000

5,000

910

(81.80)

(iv) District Packages

5,500

5,500

12,400

125.45

(v) Accelerated District Development Package

5,000

INFRASTRUCTURE
DEVELOPMENT

69,200

61,950

62,900

1.53

7 Roads

37,850

37,850

33,045

(12.69)

i) Provincial Highways

36,650

36,650

31,045

(15.29)

ii) Lahore Ring Road

1,200

1,200

2,000

66.67

8 Irrigation

11,250

11,000

11,250

2.27

9 Energy

9,000

2,000

10,000

400.00

10 Public Buildings

2,600

2,600

3,245

24.81

11 Urban Development

8,500

8,500

5,360

(36.94)

PRODUCTION SECTORS

10,525

7,175

8,615

20.07

12 Agriculture

3,400

2,035

5,040

147.67

13 Forestry

470

420

475

13.10

14 Wildlife

395

350

350

15 Fisheries

370

140

250

78.57

16 Food

230

230

200

(13.04)

17 Livestock

2,500

1,000

1,650

65.00

18 Industries, Commerce and Investment

2,860

2,800

350

(87.50)

19 Mines and Minerals

300

200

300

50.00

SERVICES SECTORS

11,750

10,900

11,100

1.83

20 Information Technology

2,000

1,910

2,400

25.65

21 Labour and HR Development 100

100

100

22 Transport

7,300

7,300

6,200

(15.07)

23 Emergency Service

2,100

1,440

2,100

45.83

24 Tourism

250

150

300

100.00

OTHERS

5,890

5,760

5,424

(5.83)

25 Environment

350

220

350

59.09

26 Information, Culture and Youth Affairs

170

170

200

17.65

27 Archaeology

350

28 Auqaf and Religious Affairs

150

150

185

23.33

29 Human Rights and Minority
Affairs

220

220

220

30 Planning and Development

5,000

5,000

4,119

(17.62)

SPECIAL PROGRAMME / INITIATIVES

12,000

12,000

35,500

195.83

(i) Bus Rapid Transit System (BRTS)

11,000

(ii) Provision of Laptops

4,000

(iii) Green Tractor Scheme

2,000

(iv) Provision of Buses for Women
Colleges in Punjab

1,000

(v) Establishment of Balochistan Institute of Cardiology, Quetta

1,000

(vi) Provision of Rural Ambulance Service

500

(vii) District / TMA
Development Programme

12,000

12,000

12,000

(viii) Equalization Grant for District Development

4,000

NET DEVELOPMENT PROGRAMME

188,000

156,945

210,000

33.80

31 Other Development Expenditure

32,000

40,000

32 TEVTA / TEVTEC

2,000

1,500

33 Daanish School

3,000

2,000

34 Punjab Millennium Development Goals Program (PMDGP)

8,500

5,500

35 Punjab Education Endowment Fund

2,000

2,000

36 Punjab Education Foundation

6,000

6,500

37 Financing of Vertical Program

5,000

38 PHAs

600

39 Women Development

500

40 Sports and Youth

500

41 PSIC (Self Employment Scheme)

3,000

42 Innovation Development Fund

500

43 Punjab Technology University

1,000

44 Internship Program

1,500

45 Establishment of Model Bazars

500

46 Companies (PIEDMC, FIEDMC, PLDC, PLDDB, PAMCO/LMC etc.)

6,440

4,900

47 Low income housing

1,200

1,500

48 Population Welfare

2,860

3,000

Sub-Total Other Development Programme

32,000

40,000

GRAND TOTAL

220,000

156,945

250,000

59.29

LOCAL GOVERNMENT FINANCE

Provincial Finance Commission (PFC) Award was decreed in July 2006 as the Punjab Specification and Distribution of Provincial Resources Order 2006. The award replaced the interim PFC arrangement of 2002-03which only permitted incremental increase on the basis of historical expenditures of local governments.PFC Award of 2006 factored in fiscal capacity of all levels of local governments; passed on UIP tax proceeds to the TMAs; provided funds to Union Administrations on population/delimitation basis; distributed development grants to the districts 50% on the basis of population and 50% based on development index; and allowed additional resources to the City District Governments to perform municipal functions.

Provincial government is also fully cognizant of the fact that empowering and strengthening of local government system is a key for ensuring equitable development throughout the province. Identification of development priorities by local representatives and execution of development initiatives by local governments with community involvement and participation shall remain as a preferred option to foster economic development and growth throughout the province.

The pattern of resource distribution to the local governments since 2006 onwards and the budget estimates of 2012-13 are summarized in the Table below:

Allocation to Local Governments under the PFC Award 2006

(Rs. in Million)

Year District Tehsil Municipal Union Total
Governments Administrations Administrations
2006-07

106,189.631

7,381.457

4,008.780

117,579.868

2007-08

106,321.834

18,531.551

4,630.732

129,484.117

2008-09

109,129.910

18,780.695

4,807.658

132,718.263

2009-10

107,351.472

15,208.800

4,818.730

127,379.002

2010-11

131,653.000

13,800.000

5,018.730

150,471.730

2011-12(RE)

165,050.660

15,151.000

5,247.837

185,449.497

2012-13

186,783.105

17,000.000

6,000.000

209,783.105

For more information, Contact:
Planning and Development Department
Civil Secretariat,
Lahore
Tel: 0092 42 -9210480
Email: info@pndpunjab.gov.pk

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