Brief on Budget 2018-19 White paper

For many years, Punjab followed an infrastructure-led growth and development paradigm with a
provincialized model of development planning. The new government intends to follow a new
paradigm for growth and development which relies on human development and empowerment of
local governments as the engines of sustainable growth and development.
Human Development requires to invest in social sectors includes health, education, social
welfare, and women development. Expanding Health insurance services, reducing dropouts in
education and using combination of public and private sector service provision. To reduce
financial risk and dependence on FBR’s collection, Government is following austerity policy and
improving provincial revenues via tax policy on property, promoting use of technology for
transparency in recording and reporting the sales by taxpayers, stronger audit and enforcement
mechanisms, and continued taxpayer awareness & facilitation. Local governments and their
specialized municipal entities such as waste management companies and water and sanitation
authorities to start charging user fees to achieve self-sustainability or at least achieve an optimal
cost recovery ratio. To make autonomous public sector entities financially independent and self-
sustainable robust business models are being made.
In FY 2018-19 sharp increase in government expenditures due to operational expenses of various
infrastructure projects, large scale recruitment and deferral of funding for subsidies relating to
commodity operations and pension liabilities along with fiscal deficit of country that is 6.6% of
GDP leads to decrease in ADP size. Punjab Government throw a budget surplus of PKR 147.8
billion.
Pension liabilities pose a major financial challenge and multidimensional strategy, which
rationalizes the pension benefits on the one hand and follows systematic funding and investment
plan for meeting these liabilities on the other hand. Following are Key facts and figures regarding
the debt and long-term liabilities of the government

CLASSIFICATION BE in Billions BE in Billions

2017-18 2018-19
A - CURRENT BUDGET
General Revenue Receipts 1,525.482 1,652.176
Current Revenue Expenditure 1,048.992 1,264.488
A- Net Revenue Account - Surplus(+) / Deficit (-) 476.490 387.687
B- CURRENT CAPITAL BUDGET
Current Capital Receipts 138.931 64.895
Current Capital Expenditure 52.302 96.774
B- Net Capital Account - Surplus (+) / Deficit (-) 86.629 (31.879)
C- Surplus for Development (A+B) 563.119 355.809
D - ADP Resources
Foreign Assistance for Projects 11.395 29.991
E- TOTAL RESOURCES (C+D) 574.514 385.800
F - Annual Development Program 576.841 238.000
Estimated Provincial Surplus /Deficit (E-F) (2.327) 147.800