LAHORE The PML-N government in Punjab on Friday presented its fourth pro-poor, reforms-oriented budget for the fiscal year 2011-12 with a total outlay of Rs654.75 billion, showing an increase of Rs71.15 billion or 12.72 percent from the current fiscal years budget estimates. According to the budget, tabled before the provincial assembly on Friday afternoon by Finance Minister Kamran Michael, the general revenue receipts for the fiscal year 2011-12 have been estimated at Rs654.67 billion, including Rs530.8 billion from the federal divisible pool under the NFC Award, Rs88.51 billion from provincial tax revenue and Rs35.65 billion from non-tax revenue. The revenue target has been fixed 15 percent more than the current fiscal year. The budget earmarked 34 percent of the total outlay for the Annual Development Programme (ADP) Rs220 billion, 14 percent up against the concluding years ADP of Rs193.5 billion while the current expenditures are estimated at Rs434.55 billion versus the ongoing year of Rs386.8 billion, registering a jump of 12.4 percent. While the budget intends concessions to the government employees, it provides comprehensive relief to the general public as well, something which was notably missing in the federal budget. The finance minister said allocation for pro-poor subsidies has been increased from Rs21 billion to Rs30 billion, as Rs 13 billion subsidy would be given on wheat, Rs4 billion for Ramazan package and Rs1 billion subsidy would be given on public transport. It is to be noted that no amount has been allocated for continuation sati roti scheme while in the current year Rs5 billion were earmarked for the scheme. The provincial government has decided to make a comprehensive and effective policy for youth employment. In this regard the government has earmarked billions of rupees for self-employment of the youth, he stated. The government earmarked Rs4.5 billion for 20,000 yellow cabs under the revised scheme while for the provision of laptop computers for the youth Rs2 billion will be spent. The minister pointed out that South Punjab will be given priority, as 40 percent of the yellow cabs will be provided to the residents of this area. The agri and veterinary graduates will be allotted up to 25 acres of public land for l5 years lease, besides providing them Rs900,000 agri loan to every youth. The government has also decided to provide a loan of Rs20,000 per head to start small businesses. He further said the government would also give Rs2 billion subsidy on solar-powered pumps during the next fiscal year. In line with the federal government decision, the Punjab government also announced a 15 percent increase in the salaries of provincial employees. He also announced a 15 percent increase in the pensions of those who retired after July 1, 2002 while a 20 percent raise for those who retired before June 30, 2002. Moreover, the conveyance allowance which was earlier limited to the education department and lower courts just in 9 big cities of the province, will now be given to every provincial departments employee all over Punjab. Similarly, the conveyance allowance of employees of grade 1 to 15 has been raised by 25 percent. On the other hand, the salaries of the provincial ministers which were slashed by 25 per cent in the current fiscal year will continue unchanged in the next financial year. In the same way, for the upcoming year the office expenditure of ministers and the Chief Ministers Secretariat is also reduced by 25 per cent. Furthermore, all the ministers and government servants would use the official vehicles in accordance with their entitlement only. The budget speech by non-Muslim Finance Minister Kamran Michael put to rest speculations that the PML-N was considering a Muslim alternative. In his speech, he termed the budget reforms- and development-oriented, balanced and public-friendly. Addressing the budget session, Michael said that the government has proposed a total allocation of Rs16.3 billion for health sector for ongoing and new development schemes, showing a 13.75 percent increase in comparison with current fiscal years allocation. The government proposed allocation of Rs13 billion for different projects for the welfare of women in several departments, including Rs1.5 billion to establish new women universities in Faisalabad, Sialkot, Multan and Bahawalpur. He said that Rs1.6 billion has been proposed for promotion f sports in the province. The government also announced to set up kidney hospitals in Multan and Bahawalpur, drug testing labs in Faisalabad and Pindi, burn units in Lahore, Faisalabad, Multan and RY Khan. The provincial government intends to reduce the 17 percent GST on services to 16 percent while the token fee of 1000cc vehicles will be increased. The government has imposed Rs60,000 annual water conservatory charge on swimming pools while farmhouses of more than four kanals will be brought into the tax net. The government will levy education cess on the membership of elite clubs. While briefing about the tax reforms, the minister told the assembly that entertainment tax on theatre has been reduced to 20 percent from earlier tax of 65 percent. Likewise, the cinemas have been exempted from tax for three years. He said that GST on services will be collected through the FBR. However, the government will set up the Punjab Revenue Authority next year to collect the GST. The Punjab government will introduce a self-assessment scheme for the collection of property tax in the year 2012-13. The government has decided to speed up its struggle against energy crunch and for this purpose a separate Energy Department already has been set up during the current year. The government has allocated a heavy amount of Rs9 billion for energy projects for the year 2011-12 while it will start a power generation project of 500 MW in collaboration with private sector, he added. He said that Rs3 billion has been earmarked for Danish Schools as was allocated in the current fiscal year, besides establishment of another 8 Danish Schools in backward areas. Police will get 6.2 percent more budget as Rs52.8 billion have been allocated compared to last years Rs49.7 billion. Under the austerity measures, the government saved up to Rs6 billion by suspending unnecessary 800 posts, merger of six departments, elimination of project allowance and ban on purchase of machinery/equipment and new furniture, he added. The government has also proposed Rs5.5 billion allocation to provide free medicines to the patients in the public hospitals of the province, besides Rs300 million for free dialysis and Rs200 million to control hepatitis. The government has started a new programme with the name of South Punjab Development Programme and for this purpose Rs10 billion has been earmarked. The governments total allocation for the uplift of South Punjab figures at Rs70 billion, which is 32 percent of the total budget. The government intends to start an irrigation programme and Rs19.5 billion have been allocated for this purpose while Rs2.5 billion have been earmarked for livestock. Moreover, Rs1.23 billion have been given to the forestry and fisheries, he said. The government intends to set up a new industrial city near the motorway and for this purpose Rs2.5 billion has been allocated. The government will allocate Rs2 billion for the promotion of technical education. For the provision of better infrastructure to the industry, the government earmarked Rs59 billion, including Rs36 billion for roads. He said the Punjab government has also earmarked record allocation for social sector development project, law and order and welfare-oriented projects to provide relief to the poor people. He said during the next fiscal year, an amount of Rs2 billion was proposed for Punjab Education Endowment Fund while Rs6 billion had so far been spent on the project. He said the government had allocated Rs62 billion for the education sector for new and ongoing development schemes, which is 12.31 percent more than the current years allocation of Rs55.2 billion. He said that Rs1.2 billion allocated for roads repairing, Rs2.7 billion for irrigation and Rs2.6 billion for agriculture.