A special session of the provincial cabinet chaired by Punjab Chief Minister Usman Buzdar has approved the budget proposals for the new financial year 2020-21.
The Punjab cabinet also approved the Annual Development Program 2020-21 while the supplementary budget for the financial year 2019-20 was also approved.
The meeting was chaired by Punjab Chief Minister Usman Buzdar and was attended by provincial ministers, special assistants, chief secretaries and secretaries of relevant departments.
The Punjab government will present the budget for the financial year 2020-21 at 2 pm today.
As Punjab Government is going to present the budget of Rs2.222 trillion today, the provincial sales tax is expected to be slashed by 5 percent for the majority of services.
The government is going to allow submission of the property tax in two installments due to the novel coronavirus pandemic.
Punjab will get almost Rs 1.439 trillion from the federal government under National Finance Commission (NFC) transfers.
Further, the government is expecting almost Rs 132 billion funds from donor-funded projects in the shape of foreign support.
The economic impact of the COVID-19 is going to be exposed in the forthcoming fiscal year so the government is fixing downwards revenue targets for the fiscal year 2020-21.
The government earmarked Rs 10 billion for new 8,519 recruitment in the health department, Rs 13 billion block allocation for COVID-19 specific on the current side, Rs 30 billion economic stimulus package for SME sector and Rs 15 billion tax relief package and Rs35 billion for the existing workforce of the health department under COVID-19 initiatives.
Moreover, the government has designated more than 55% of its budget for the four departments, including Rs 323 billion for school education, Rs 130 billion for specialized health, Rs123.5 billion for primary health, Rs 132.8 billion for the police department.