The 2021-22 budget of the PTI government really appears feel-good with significant rise in subsidies and incentives for big business, manufacturing, corporate market and agriculture sectors. As a matter of fact this budget includes exemptions and relief measures for nearly all industries, including good promises for stability in housing and sustainability in environment.
Public Support Development Program
One of the top most features of the budget is the allocation of Rs. 900 billion in the Public Sector Development Program (PSDP). The Finance Minister Shaukat Tarin told the parliament while announcing the budget that the Public Sector Development Program would be increased from Rs 630 billion to Rs 900 billion to counter the adverse impact of the coronavirus pandemic. For housing and environment related programs following allocations has been made;
- Rs 99 billion for water resources,
- Rs 40.93 billion for housing and planning
- Rs 15.26 billion for environment
- Rs 74 billion for Sustainable Development Goals,
Housing & Construction
The government believes that the housing sector, which includes finance, construction, and building materials, is the only one that can handle all the problems in the country including employment and circulation of wealth. The Prime Minister believes that is housing plan will improve the country’s economy and banking sector.
That’s why Finance Minister specially mentioned in the parliament that “Pakistan introduced mortgage financing for the first time ever” and added that the “passing of the foreclosure law has enabled banks to start lending to people.”
Support of the housing sector and the construction industry through Naya Pakistan Housing Scheme and SME support programs has been the special feature of the budget. On several raw materials used in construction industries have been either exempted or duties have been reduced. The budget has also proposed to introduce normal tax by eliminating block taxation of property income, capital gains and rental incomes.
Water Resources
Availability and accessibility of water has been ensured in the budget therefore Rs. 3 billion are reserved for water courses while more than Rs. 99 billion have been allocated for construction of four hydropower dams (Dasu, Diamer, Mohmand and Neelum Jehlum).
Environment Sustainability
While delivering a speech for Budget 2021-22, Finance Minister Shaukat Tarin said that Rs14 billion has been allocated for Ten Billion Tree Tsunami project and Rs 14.327 billion has been earmarked for various ongoing and new projects of climate change division aimed at enhancing countries resilience against environmental degradation.
He further disclosed the government has also proposed Rs16 billion for improving the environment in the country. While Rs. 74 billion have been assigned to meet out the Sustainable Development Goals.
By
Editorial, Infocus
