Punjab Setting Another Bench Mark For others To Follow
All Provincial Governments presented their Budgets excluding Baluchistan which is about to present it in a day or two. Punjab Budget was stamped with trademark Shahbaz Sharif signature on it, continuing its policies which he pursued in his last tenure, humongous developmental budget of 290 billion rupees, huge allocation to Education of 230 billion plus and 82 billion allocated to Health, Southern Punjab getting a whopping 93 billion rupees in development budget. A continued austerity drive which was initiated few years back, pledge to end "Patwar Culture" by 2014... system has already been functioning in 13 Punjab Districts in their previous rule, a renowned commitment to end "Thana Culture" which seems the only failure of previous Shahbaz Government, starting Metro in Multan, Pindi and Faislabad. Shahbaz Sharif trade mark schemes continuing to get more funds.
Pujab And KPK Governments clearly have shown intent and willingness to change the lives of the people of their respective Provinces, Punjab allocating huge funds to infrastructure, health and education, thus enhancing the capability of their Province which is already miles ahead of others. I think for their effort and dedication in last five years of their rule in Punjab they have been rewarded by people of Punjab, giving them overwhelming majority in the Province and Simple majority in the Centre. As far as KPK is concerned, one must appreciate their Budget as well, clear direction, road map defined and targets outlined for their rule in the Province. A remarkable austerity drive has been started which must be very new and alien to KPK, Punjab has been witnessing this drive for last five years of SS rule. Allocating major chunk to Health and Education as promised in "PTI Manifesto", 66.5 billion to Education that is 19% of total Budget, 22.6 billion to Health which is indeed unprecedented and appreciable fact. Third thing which I believe PTI led KPK Government has done, allocating funds and shifting their focus to energy crisis, will and commitment to start small hydro projects. A commitment to eliminate "Patwari and Thana" culture will take years but definitely a commitment in right direction. As far as Sindh is concerned, the same old tactics of discretionary funds for Chief Executive and MPA's continue, no set targets and goals identified, infect incompetent Qaim Ali Shah taking credit for winning GE in Sindh??.
After listening closely to three Budgets, one finds it amazing that KPK and Sindh kept on repeating that it is a tax free budget, no new taxes have been imposed on people of their Provinces who can afford and belong to privilege class and totally relying on NFC award hence money coming from divisible pool which definitely has increased handsomely after 18th amendment, a credit and landmark achievement of previous Government and definitely Zardari Regime must be credited for this historic turn of events. After 18th amendment the responsibility of Provinces has increased many folds, many departments have been transferred to the provinces under the amendment, at the same time provinces can implement their own taxes and increase their revenue hence expanding the scope of their social net for the poors but ironically, a tax free budget in two provinces but rich and feudal spared.
It is even more distracting and agonising to see that PTI leading the collision Government in KPK, criticising Federal Government daily on talk shows that Federal Government has failed to tax the Rich and hence broaden the tax base but many disagree as well because Federal Government has taken some appreciable steps to document the economy but yes lot more needs to be done. We all know that Agricultural and property tax strictly fall under Provisional domain but alas PTI failed on their pre election commitments of broadening the tax base. The Social Media was bombarded with news that PTI Education Budget increased by 600%, some said 1100%, okay even we agree to that the Question arises what is the Provincial Government contribution to that if it had not been that revised NFC award??. People of Pakistan expected a 360 degree change from PTI who been very vocal about tax reforms but unfortunately when they got the chance their claims have fallen short and proving mere rhetoric they need to take immediate action regarding tax reforms otherwise dream of "Naya Pakistan" will be a difficult task . Similarly Sindh Government where MQM was very vocal and advocate of Agriculture tax, has announced a referendum, asking its voters whether they should join the Government or not, I was thinking and hoping a stand from MQM on this taxation issue but unfortunately they are doing what they have been doing best for the last 25 years, that is how to be part of ruling party.
Now come to Punjab Government, getting a massive 702 billion rupees from Federal Government but has set an ambitious revenue target of 169 billion rupees. (tax plus other sources) SS has taken a first step of broadening the tax base in Punjab, introduced new taxes and importantly taxing rich. Introduced three different tax slabs for 2-4, 4-8 and 8 canal plus houses taxing 5, 10 and 15 lac rupees respectively and naming it as "Luxury Tax", has introduced capital gains tax on property and introducing different slabs as well that is 1, 2, 3, 4 and 5 years property sales will be taxed 5, 4, 3, 2 and 1% of their gain on property, finally has revamped already imposed Agricultural tax in Punjab, showing willingness and commitment to tax rich and feudal, increasing revenue target from 1 billion rupees to a 2 billion plus. Don't forget that Punjab Government introduced Farm Levy previous year, these taxes are very important, looked very uphill and daunting task to collect money initially but with time and with each passing year they kept on growing and more and more people kept coming in tax net, revenue kept on growing, giving immense space for social sector development. An ambitious target of 169 billion against 120 billion rupees in previous year. Other Provinces must take a leaf out of Punjab Government book, tax rich, start broadening tax base, generate their own resources, in addition to NFC. Punjab is galloping ahead of other Provinces as the gap is increasing day by day, actually annoying people of other provinces, creating a sense of deprivation, unfortunately it is their rulers to blame whom they vote for, they must also be held accountable . Having said all this, there is no doubt in my mind that Punjab has to do a lot more and its a hurricane task to broaden tax base, few measures are not enough, it needs a dedicated and committed effort in the coming years.
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