LAHORE, June 24: Punjab Finance Minister Tariq Hamid on Monday presented a tax-free, surplus revenue budget of Rs130.725 billion for the financial year of 2002-03, estimating revenue income at Rs130.725 billion as against expenditure of Rs117.100 billion. The budget carries a revenue surplus of Rs13.625 billion.

The revenue outlay for the next fiscal year is about nine per cent greater than the budgetary estimates of Rs120.313 billion and 16.5 per cent higher than the revised estimates of Rs112.286 billion for the current year.

The general revenue receipts comprise transfers from the federal divisible pool which are estimated at Rs85.2 billion during 2002-03 against the revised estimates of Rs82.87 billion and budgetary estimates of Rs91.728 billion for the outgoing year.

Other federal transfers are estimated at Rs5.552 billion, provincial tax receipts at Rs12.033 billion and income from property and enterprizes at Rs1.231 billion. The receipts from civil administration and other functions are estimated to amount to Rs26.707 billion.

The revenue expenditure of Rs117.100 billion is up by Rs15.574 billion from the outgoing year’s revised estimates of Rs101.526 billion. The increase is attributable to the impact of revised pays and pensions. The major share of Rs41.643 billion from the total revenue expenditure has been allocated for social services, Rs25.091 billion for debt servicing, investible funds and grants, Rs17.156 billion for general administration, Rs13.544 billion for economic services, Rs12.188 billion for law and order, Rs4.475 billion for community services, and Rs3 billion for subsidies.

The government plans to spend Rs41.643 billion on social sector during the financial year. This would include allocation of Rs31.690 billion for education, Rs9.016 billion for health, Rs123.245 million for manpower and labour management, Rs137.527 million for housing and physical planning, Rs106.469 million for sports and recreational facilities, Rs507.026 million for social security and social welfare, Rs23.715 million for natural calamities and other disasters and Rs39.253 million for religious affairs.

The local governments stand to get an estimated amount of Rs58.538 billion, up by Rs9.361 billion from the current year’s allocation. The district share forms 38.72 per cent of the total resource proceeds of Rs133.205 billion of the Provincial Consolidated Fund. It includes direct transfer of Rs6.962 billion from 2.5 per cent GST (provincial). The provincial allocation (minus foreign assistance) stands at Rs47.125 billion or 35.38 per cent of the PCF. The allocation made for charged expenditure, pensions and others is estimated to be Rs27.542 billion or 20.68 per cent of the consolidated fund. Although no new tax has been levied, the budget proposes to revise upwards the rates of motor vehicles tax and bring jewellers, lawyers, departmental stores, electronic goods, cable operators, and stock exchange members into professional tax net.

The minister said following the principle that “broadest shoulders should share heaviest burden”, some affluent business and professional classes have been brought into the tax net under the Finance Ordinance-2002. However, the exemption limit from property tax given to widows, minor orphans and the disabled has been raised from Rs27,000 to Rs48,000.

The minister also announced an annual development programme (ADP) of Rs20.750 billion for the next year. The province has shown matching resources for funding its development budget against the expenditure.

The development budget would be financed by the provincial government through its own resources and loans and grants from the donors. The province will contribute Rs12.978 billion to fund its ADP while Rs7.385 billion will come in the shape of foreign project assistance and loans from the donors. Another Rs45 million will be raised from a Japanese grant while Rs341 million would be given by the federal government for consolidating devolution of power plan in the province.

The province’s current capital budget for the next year shows a deficit of Rs649.621 million as the capital receipts have been estimated at Rs30.387 billion against current capital expenditure of Rs31.036 billion.

The revised estimates of current capital budget for the outgoing year put the deficit for the year at Rs4.033 billion as against budgetary estimates of Rs3.244 billion.

Similarly, the public accounts receipts are estimated for the next fiscal year at Rs57.137 billion against disbursements of Rs57.037 billion, showing a surplus of Rs100 million.

In his speech, the minister urged the people that the budget be viewed in the context of the international situation after the Sept 11 incidents and tensions on borders with India which had had serious impact on the economy and, consequently, on the current year’s resources. He said despite poor economic conditions the “speed of development in the province was not allowed to slow down”.