Investor Presentaiton

Chapter II - Estimates of Receipts Estimates of Receipts A nnual Budget is regarded as the primary manifestation of the Service Delivery plan of a Government. For administrative purposes, however, the plan is reflected in terms of estimates of Receipts and Expenditure during a Fiscal Year. This Chapter is aimed at providing a comprehensive analysis of the Receipts of the Provincial Government in FY 2019-20 and projected for FY 2020-21. Classification of Receipts by the Provincial Government 1 General Revenue Receipts & 2 Capital Receipts The following flow diagram provides different sub-categories of the Receipts under the two main categories of Provincial Receipts: General Revenue Receipts Punjab's Share in Federal Divisible Pool Provincial Tax Receipts Non-Tax Receipts Provincial Consolidated Fund Capital Receipts Current Capital Receipts Development Capital Receipts As highlighted in Chapter 1, Punjab, like the global economy, has been hit adversely by the COVID-19 pandemic. The Government of Punjab adopted a proactive approach to mitigate the negative impact on livelihoods by announcing a Tax Relief Package worth more than PKR18 billion (discussed in detail below). Furthermore, it has been estimated that the negative impact of COVID-19 will continue till at least the 1st half of FY 2020-21. Keeping this in view, the Ministerial Committee of the Cabinet on Resource Mobilization (RMC) also adopted a multi-pronged Fiscal Strategy with a focus on striking a balance between: Relief Relief/economic stimulus for businesses Revenue Generation Revenue generation through economic growth and broadening of the tax base rather than increasing rates Social Protection Social Protection by providing relief to the COVID-19 affected segments of the society Based on multiple rounds of Finance Department's meetings with major Tax and Non-Tax Departments and efforts of the RMC, a rigorous tax- by-tax analysis of Punjab's Tax Relief Package and Departmental proposals for the FY2020-21 has been conducted resulting in the following key recommendations: Page 5

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