June 12, 2015
News
Salient Features of Punjab Budget 2015
APPLAHORE – As always, the budget strategy is embedded in a three-year medium term macroeconomic framework spanning the period 2015-16 to 2017-18, the main features of which are as follows:
GDP growth to gradually rise to seven per cent by fiscal year 2017-18;
Inflation will be contained to single digit;
Investment to GDP ratio will rise to 20 per cent at the end of medium term;
Fiscal deficit would be brought to down to 3.5 per cent of GDP;
Tax to GDP ratio will be increased to 13 per cent;
Foreign exchange reserves would be maintained above $20billion
Human Development
Initiatives that will be undertaken for the promotion of this sector are as follows:
A sizeable allocation of Rs 20.5 billion has been made for 143 projects of the Higher Education Commission (HEC), which will support development plans of different universities all over the country. It may be noted that on the current side also a hefty allocation of Rs 51 billion is made for HEC. Thus, a combined outlay of Rs 71.5 billion will be made for higher education. The combined allocation represents an increase of 14 per cent, which is sizeable considering the tight fiscal conditions prevailing in the country.
TDPs and Security Enhancement: Special Development Programme
Operation Zarb-e-Azb had been initiated with a steely resolve to uproot this peril for good and armed forces have fought valiantly and accomplished exemplary successes, for which they deserve the gratitude of every Pakistani. However, the atrocities committed by retreating and desperate remnants elements in Peshawar and Karachi are a reminder that Pakistan cannot be complacent in this war.
These events have established the need for further reinforcement in country’s internal defenses with objectives of protecting the areas from where the terrorists have been evicted, rehabilitating the displaced persons allowing them to honorably restart their lives. To cater for these needs the government is undertaking a Special Development Program of Rs 100 billion to enhance the security apparatus and rehabilitate the affected areas and resettle the temporarily displaced persons (TDPs).
China-Pak Economic Corridor (CPEC)
China-Pak Economic Corridor is the vision of Prime Minister Nawaz Sharif and top Chinese leadership to revive and rebuild the historical connectivity between China and Pakistan, and to eventually enable extended connectivity to central and West Asia.
Kashgar-Gawadar linkage will not only enhance trade but will also act as an energy corridor. Pakistan and China have jointly signed projects worth about $46 billion that include building of roads and rail networks and telecommunications, development of Gwadar Port and major projects for additional power and improvement in power transmission sub-sector.
Some of the key projects proposed to be undertaken under the CPEC program are as follows:
2 x 660MW Coal-Based Power Projects (IPP) at Port Qasim;
Power Evacuation from Mitiari to National Grid (IPP);
3.5 MT/A Coal Mining and 2x330MW Power Plants based on Thar Block-II SECMC;
Solar Power Park at Bahawalpur;
2,793MW (Three) Hydro Power Projects;
Multan-Sukkur section (387km) of Karachi-Lahore Motorway;
Karakoram Highway (Phase-II) Raikot to Islamabad;
Fiber-Optic;
Rehabilitation and up-gradation of Karachi-Lahore-Peshawar (ML-1) Railway Track;
Gwadar Package;
Eastbay Expressway at Gwadar (18.98km);
Jhimpir Wind-Power 200MW;
2 x 660MW Coal-Based Power Projects at Sahiwal;
Jetty Infrastructure at Gaddani as IPP (preferably) or Public Sector;
Development of GawadarKeeping in view the significant role Gwadar has to play for strengthening the economy of Pakistan in the coming days, the government takes the development of this area very seriously.
Rs 3 billion are being allocated in 2015-16 for New Gwadar International Airport A provision of Rs.2 billion has been made for Gwadar Development Authority in next budget, and for necessary facilities of water treatment, supply its distribution in Gwadar, substantial allocation of Rs 3 billion is being made.
Pay and Allowances for Government Employees
7.5 per cent ad-hoc Relief Allowance on running basic pay will be allowed to all federal government employees with effect from July 1, 2015, as against the recommendation of five per cent increase by the Committee.
Ad-hoc increases of 2011 and 2012 will be merged in the pay scales as recommended by the Committee.
Medical Allowances of all government employees is being enhanced by 25 per cent.
One premature increment will be allowed to employees of grade 5 with effect from July 1, 2015. Last year pre-mature increment was allowed to employees of grade 1-4.
The rates of special pay to Senior Private Secretaries, Private Secretaries and Assistant Private Secretaries are being increased by 100 per cent.
The rate of orderly allowance and special additional pension is also being increased to Rs 12,000 per month.
For the welfare of the labor class and in line with increase in pay of government employees, the minimum wage rate is also being increased from Rs 12,000 to Rs 13,000 per month.
Pensioners
Following relief measures are being announced for the pensioners:
7.5 per cent increase in net pension to all pensioners of federal government with effect from July 1, 2015.
Medical Allowances of pensioners is being enhanced by 25 per cent.
Courtesy www.dailytimes.com.pk