Rs 15.6bn welfare tax to be diverted to flood relief

[Lahore_Real_Estate]

* Government decides to divert Rs 280 billion of PSDP funds to help flood victims

By Sajid Chaudhry

ISLAMABAD: The federal government is considering diverting the Rs 15.6 billion proceeds of the Workers Welfare Tax to the flood-affected areas, official sources said on Tuesday.

The government collected Rs 15.6 billion taxes during the last fiscal year and the official estimate for the ongoing fiscal year is Rs 20 billion, sources said. The money, however, has yet to be realised, they said.

The government has already decided in principle to reprioritise the federal budget 2010-11 and major initiatives of which is diverting some Rs 280 billion funds from the Public Sector Development Programme (PSDP), which had been launched for the ongoing fiscal year 2010-11, towards the rescue and rehabilitation of the affected population and reconstruction of the flood-affected areas.

The government has also decided to cut the non-development and none-salary expenditures, earmarked for 2010-11 by Rs 40 billion so as to create a fiscal space for the flood-affectees.

These measures would altogether make sure the availability of Rs 320 billion for the government to start the early recovery plan aiming at providing the flood-affectees with shelter, food, health and sanitation facilities.

The measures taken by the government will also help in the reconstruction phase after completion of damage need assessment carried by the World Bank and Asian Development Bank jointly in collaboration with a committee formed by the federal government having participation of provincial members also.