Federal Budget with a total outlay of 7022 billion rupees for the next fiscal year, has been announced. Minister of State for Finance Hammad Azhar presented the budgetary proposals in the National Assembly on Tuesday (June 11) evening.
The resource availability during the next fiscal year has been estimated at 7899.1 billion rupees against 4917.2 billion rupees in the budget estimates of the outgoing fiscal year. The gross revenue receipts are estimated at 6717 billion rupees, showing an increase of 18.7 percent over the budget estimates of outgoing fiscal year.
- Total budget outlay Rs7,022bn—30% greater than previous year
- Rs1,863 billion fixed for Public Sector Development Programme
- Development expenditure set at Rs843.4bn
- Rs701bn earmarked for Federal PSDP
- Rs1,152bn fixed for Defence Affairs and Services expenditures
- Civil government expenditure to be Rs431bn
- Higher education expenditure of Rs45bn
- Government sets aside Rs271bn for subsidies
- Inflation targets set at between 5 and 7 per cent
- General sales tax on goods to remain at 17 percent
- 3% value added tax on import of mobile phones eliminated
- Rs5,200 FED proposed on every 10,000 cigarettes
- Sales tax on sugar proposed to be be increased to 17 percent
- Rs40 billion subsidy to be given for electricity, gas
- Development expenditure for tribal districts fixed at Rs152 billion
- Rs45.5 billion allocated for Karachi’s development programme
- Stipend through BISP scheme increased from Rs5,000 to Rs5,500
- Govt aims to eliminate circular debt in coming years
- The government has formed a new ministry to eliminate poverty, which will introduce programs for social safety. People benefiting from the Ehsaas program include the poor, orphaned, homeless, and disabled sectors of the population.
- Ration card scheme being introduced. 80,000 people to benefit from this scheme with interest-free loans.
- 10 per cent increase in salaries for government employees from grade 1 to 16, including armed forces employees
- 5 per cent ad hoc relief for government employees from grade 17 to 20
- No increase in salaries for civilian government employees from grade 21 to 22
- Minimum wage set at Rs17,500
- Pensions increased by 10 per cent
- Ministers agree to voluntary 10 per cent cut in salaries
- Minimum taxable income for salaried class to be Rs0.6mn per annum
- 11 progressive tax slabs ranging from 5 to 35 percent proposed for salaried class
- Minimum taxable income for salaried class to be Rs0.4mn p.a.
- Eight progressive tax slabs ranging from 5 to 35 percent proposed for non-salaried class
- Non-filers no more restricted from purchasing property
- Non-filers to be allowed to purchase property of over Rs5mn
- Corporate tax to remain at 29 percent for next two years