LAHORE - The Punjab government took loans of about Rs 421 billion, which are 3 percent of the GDP of the province, during the current fiscal year. The government is spending almost 3 percent of the GDP on debt servicing. Punjab tax collection has increased by 31 percent during the current fiscal year, which was growing at just 8 percent in last fiscal year of 2014-15.
These views were expressed by Punjab Finance Minister Dr Ayesha Ghaus Pasha during a briefing to Lahore Economic Journalists Association here on Thursday.
She said that the government is working for automation of sale tax collection which will increase revenue generation and create transparency in the system. She claimed that the Punjab Revenue Authority will not burden the poor.
Dr Ayesha said that Rs 160 billion loan for Lahore Orange Train from Chinese Exim Bank will be transferred to Punjab government in the coming days while no loan in any other head has been taken for the project. She added no allocation was cut from any other project for Orange Line, however, some funds were shifted to this project under the head of ‘priority spending amount’ which will be approved by the Punjab Assembly through supplementary grants.
She said the Punjab government is providing Rs 23 billion food subsidy which is also benefiting the rich people. Now the government has planned to give targeted subsidy which will only cater the real needy people. The minister claimed that the inflation rate declined after reduction in petroleum prices.
She said that that the government evolved balanced and stable policies for the growth of the province while allocations for education, health and south Punjab development will further increase in the forthcoming fiscal budget.
“The government has also planned to expand ambit of the GST on services and bring the medical doctors and others into the tax net from next year and automate the sales tax collection mechanism. These days 57 sectors are in sales tax net,” she said
Dr Ayehsa said that the US barred Punjab from coal power plants but the government has assured that the modern technology plants are being established which are environment friendly, adding that the government is focusing on alternate energy sources.
President LEJA Sudhir Ch appreciated the Punjab government for appointing an economist as finance minister for the first time.