LAHORE: The Punjab government has proposed an allocation of Rs392.08 billion for subsidy and relief with a claim to protect commoners from the sharp impact of inflation and announced an increase of 15 per cent in salary and 5pc in pension of the government employees.

The budget document [earlier approved by the provincial cabinet] shows that Rs200bn have been set aside to provide subsidies on flour to ensure the commodity would be available to the masses at Rs490 per 10kg bag in the province. Previously the 10kg flour bag was available for Rs650.

Of Rs392.08bn, the Punjab government has allocated Rs190.58bn for subsidy and relief package. The subsidy and relief package includes Rs100bn for social protection initiative (utility support programme), Rs5bn for subsidy on ghee, Rs2bn for Ramazan Package, Rs17.32bn for agriculture, Rs17.89bn for transport, Rs0.44bn e-credit facility for small farmers, Rs39.93bn for free medicines, Rs2bn for drought and plantation, and Rs6bn environmental/climate change challenges.

15pc increase in salary, 5pc in pension likely

The Punjab government has also decided to increase salaries and pension of employees with 15pc increase in salary and 5pc in pension for government employees alongside merging the previous ad hoc increases into the basic salary. By doing it, almost a 20pc real time increase will be in the salaries.

The Punjab government will also continue with the PTI’s flagship project of health card with a whopping allocation of Rs127.34bn.

The government is also conducting fiscal discipline and austerity measures including ban on purchase of new vehicles from current budget, on purchase of air-conditioners exceeding aggregate amount of Rs5 million in the financial year, on treatment abroad at government expense, on air travel through government funding, on workshop/seminars out of public fund and ban on upgrade of posts.

Additionally, the government wants to set aside Rs1.5bn for provision of laptops as the previous PTI government had suspended the programme started by the Shehbaz Sharif government in 2010.

The PTI government had stopped distribution of laptops among students in 2018 and termed it a burden on the national exchequer. The previous government had not distributed laptops among students/ position holders during its three and a half year’s tenure.

Published in Dawn, June 14th, 2022