KARACHI: The Balochistan government has devised a strategy to enhance revenue collection for funds on public service delivery. Under the strategy, special targets have been assigned to the tax collection authorities and departments, Zohair Raisani, Director of Finance, told Media.
He pointed out that the Balochistan Revenue Authority was tasked with collecting Rs38.4 billion during the current fiscal year (2024-25) followed by the Board of Revenue to collect Rs3.3 billion and Excise & Taxation Department Rs1.7 billon.
He said in Balochistan, where development is a challenge, tapping into its revenue potential is crucial. “This move is not just about collecting more money. It is like planting seeds for a better future in Balochistan,” he added.
With increased revenue, people’s lives can improve, services can get better, and the province can manage its own expenses. This shift towards financial independence means Balochistan will not have to rely much on the national government, thus lightening the financial burden for everyone, he said.
Reforms are also under consideration in order to benefit the taxpayers and bring transparency in the system. Furthermore, he said the provincial government was intensifying efforts to increase tax collection from the real estate and rental sectors.
He said the Balochistan Revenue Mobilization (BRM) Plan had also been approved by the Finance Department. To implement the plan, regular consultations are held with relevant departments and agencies.
Balochistan presented Rs955.6 billion budget for FY2024-25, projecting development expenditures of Rs321.2 billion and a projected cash surplus of Rs25.4 billion for the current fiscal.
The budget is more than 36 percent larger than the original estimate of Rs701.4 billion for the previous year. This is mainly due to the anticipated increase of over 39 percent in the province’s receipts from the federal tax divisible pool.
The other receipts from the federal government include Rs20.6 billion in straight transfers, Rs20million in non-development grants, and Rs59.1 billion in development grants. The other major revenue streams include Rs47.7 billion from provincial taxes and Rs76.8 billion from the provincial non-tax receipts.
The foreign project assistance for development schemes has been estimated at Rs10.9 billion, compared to more than Rs12 billion for the outgoing year.
The healthy increase in the province’s revenue will be largely offset by a more than 41 percent increase in its current revenue expenditures, which will surge to Rs564.9 billion on account of a sharp rise in the pay and pension bill as well as increased spending on maintenance of security. Meanwhile, the development expense will be raised modestly to Rs321.2 billion from the current Rs313.3 billion.
Zohair Raisani said the expenditure needs and development requirements of the province needed generation of more funds. The provincial government’s efforts are likely to yield the results by enhancing tax collection. –INP
