LAHORE - The Punjab government will present its maiden budget for the fiscal year 2008-09 with a total outlay of about Rs 400 billion against the previous amount of Rs 356.17 billion with a huge subsidy on flour and transport besides new taxation measures to boost the provincial revenue. The Secretariat sources, engaged in the budget making, disclosed that the provincial govt has decided to allocate Rs 130 billion for the projects to be executed under the Annual Development Programme (ADP). It is learnt that govt will adopt some new taxation measures while bringing some new sectors in the tax-net this year instead of enhancing tax on the existing ones. In pursuance of this policy, the govt has decided to impose heavy tax on luxurious vehicles (1300 CC and above) and property tax on comfortable apartments, flats and multi-storey plazas. 'The registration and token fees on (both new and old) luxurious vehicles (1300 CC and above) will be increased heavily in the forthcoming budget to generate more revenue from the provincial resources'. The govt in the new fiscal year would also notify a number of existing rural areas as urban areas to impose property tax on these localities. The sources revealed that new taxes are introduced to comply with and achieve Rs 1,100 billion Federal govt revenue target for the fiscal year 2008-09. 'There is no specific definition of rural and urban areas in the Punjab Local Government Ordinance 2001. Therefore, the govt has decided to amend this Ordinance in order to levy heavy property tax on luxurious flats, apartments and commercial plazas after the notification of urban areas', the sources added. In order to provide relief to the poor, the govt would give approximately Rs 20 billion subsidy on flour and urban transport. The govt has also decided to continue the existing health schemes including free of cost medicines at public hospitals and rescue services. Talking about the salient features of the pro-poor and development-oriented budget, the sources said that the govt will give subsidy worth Rs 20 billion on transport and flour in order to avoid any increase in the prices of flour and transport fares. The Punjab Transport Department has been tasked to devise a mechanism to give subsidy to the transporters so that the transport fares remain unchanged. Elaborating the subsidy on transport, the sources said that the govt has decided to pay 25 per cent on the purchase of a new bus to the company while the bus owner would have to pay only the remaining 75 per cent. This subsidy will be given to the urban transporters only in the big cities of the province. The main objective of this subsidy is to provide relief to the poor on urban transport in order to avoid any increase in the fares, sources said, adding,that the subsidy will be given to the urban transporters of the big cities. For the very first time, the Punjab govt has decided to provide reasonable financial assistance to the intelligent and noble students through the Higher Education Commission (HEC). The HEC has been directed to devise a comprehensive strategy in this regard, the sources added. The govt will raise the salaries of the govt servants on the pattern of the Federal govt. Giving details of the Annual Development Programme of the province for the fiscal year 2008-09, the sources revealed that the ADP would be approximately Rs 130 billion, which is much more than actual utilisation in the current fiscal year. Last year, the previous govt had announced Rs 150 billion ADP, which was subsequently reduced to Rs 121 billion during the caretaker govt's tenure. Over 80 per cent of the ADP was utilised during the first half of the current fiscal year 2007-08 by the last govt against the normal practice to gain political motives, the sources added. The new budget would be based on taxing the rich, relieving the poor and massive reduction in non-development expenditures of the province. The sources further revealed that the taxes on rich are to be levied to generate sufficient revenue to undertake relief programmes for the poor. The proposals to this effect have been sought from different provincial departments. The sources also divulged that the income from agriculture is already being taxed through land-based mechanism therefore, the agri-income tax needs some modification for revenue generation. The govt is looking into different proposals regarding agricultural taxation or other steps. The Punjab govt will develop its capacities for tax collection and once this is achieved, the province will ask the Federal govt to transfer the sales tax collection rights to the province. In order to enable the province to enhance its capacity of tax collection special efforts will be put in place during the next few years. The sources further said that the ongoing projects would not be deleted from the provincial ADP and new schemes for construction of small dams, irrigation development and social services would be introduced.