LAHORE, June 8: The Punjab government will present its last budget on Saturday (today) for the next financial year showing a total outlay of Rs780 billion that also carries a development programme of around Rs257 billion.

No new tax is likely to be imposed in the next budget in view of the approaching the general election but sources say the existing tax rates could be reshuffled to increase the provincial revenue.

Sources said the provincial government’s failure to effectively bring untaxed and under-taxed sectors like agriculture and real estate had increased the province’s dependence on federal transfers under the National Finance Commission (NFC). The province is projected to receive Rs710 billion from the federal government under the NFC in the next financial year.

The provincial government’s last budget before the next election expected in the first quarter of 2013 will allocate over Rs35 billion for subsidizing its various election related programmes. Sources in the provincial Finance Department told this reporter that the government of Chief Minister Shahbaz Sharif had decided to continue its programmes targeting the youth in Punjab like the distribution of free laptops to students, subsidized yellow cabs to the unemployed and an internship programme for the youth. Besides, the Green Tractor scheme for the distribution of subsidized tractors to farmers will also continue.

They said the government had allocated Rs4 billion for free laptops and Rs2 billion for tractors. Additionally, Rs12 billion will be allocated for initiating power generation projects. It may be recalled that the government had set aside Rs9 billion for the energy development projects in the budget for the current year. However, not a single paisa was released. The government will also try to complete its projects like the Bus Rapid Transit programme for Lahore. Further, they said, the province has also decided to raise the salaries of its employees in line with the federal government’s decision announced in its budget for the next year.

“The next budget will focus on schemes and projects that can be completed before the next election is announced and an interim setup put in place,” said a source. They said the ongoing schemes that are likely to benefit the ruling Pakistan Muslim League win over voters, especially the youth, are being continued in view of the growing popularity of Imran Khan’s Pakistan Tehrik-i-Insaf in the urban areas of central and upper Punjab, areas considered a stronghold of the ruling party.

Also, the opposition Pakistan People’s Party (PPP) presented a Rs882 billion ‘shadow’ budget for the next fiscal year. The shadow budget proposes allocation of Rs362 billion for development, Rs25 billion for energy, Rs20 billion for health, Rs170 billion for local governments, Rs16 billion for agriculture, Rs25 billion for irrigation, Rs36 billion for clean water and Rs75.5 billion for education.

PPP leader and former provincial finance minister Tanvir Ashraf Kaira presented the budget at a press conference and said the opposition had prepared the Punjab budget after consulting the Lahore Chamber of Commerce and Industry and different trade associations.

Mr Kaira said the last four years’ development budget volume was Rs750 billion. The government spent only 40 per cent while 50 per cent of the spent amount had been misappropriated by the corrupt and commission mafia. He said the funds of Rs74 billion could not be presented for audit. The Accountant General of Punjab had written a letter to Chief Minister Shahbaz Sharif in this regard but to no avail.

He said during the last two years the tax revenue target had reduced from Rs91.5 billion to Rs88 billion. “The Punjab has been totally depending on the federal government,” he added. “We have proposed establishment of a provincial tax authority for generation of more revenue.” He said the Punjab government was preparing the budget document 2012-13 for the last three months but there was no full-time finance minister.