The PTI government has submitted the budget for the next fiscal year 20-21 with a total of Rs. 7.29 trillion.
Minister of Industry and Production, Hammad Azhar, presented the draft budget to the National Assembly on Friday. The minister said gross income was estimated at Rs. 6573 billion.
Tax Collection
The target of the FBR tax collection was set at Rs. 4,963 billion, while non-tax revenues are estimated at approximately Rs. 1610 billion.
As part of the NFC award, 2,874 billion rupees are being transferred to the provinces. The county's share of federal taxes is estimated at Rs. 2873.7 billion. The net income was estimated at Rs. 3699.5 billion, an increase of 6.7 percent compared to the budget estimates for the past fiscal year.
The net capital income was estimated at Rs. 1,463.2 billion, which is 75.93 percent more than in the past financial year.
External Revenue
The minister said that next year's external revenues are estimated at Rs. 2,222.9 billion. Development expenditures outside of the PSDP were estimated at Rs. 70 billion in the budget.
Total federal spending is estimated at Rs. 7.137 billion with a budget deficit of Rs. 3,437 billion, which is seven percent of GDP. The primary balance remains -0.5 percent.
Public Sector Development Programmes
The scope of the public development program for 2020-21 is DKK 1324 billion. Of these, Rs. 676 billion allocated to the provinces.
Federal PSDP was valued at Rs. 650 billion, of which Rs. 418.7 billion For federal ministries and departments, Rs. 100.4 billion For businesses, Rs. 3 billion rupees for the earthquake reconstruction and recovery organization and 7 billion. Rupees for the COVID response and other natural disasters.
The minister said that 73 percent of PSDP was for current programs and 27 percent for upcoming projects. He said the social sector had a special focus.
To that end, the credits have been increased to Rs. 249 billion Van Rs. 206 billion He said the government had set up a special development program worth Rs. $ 70 billion to offset the negative effects of the coronavirus pandemic and other disasters and improve people's living standards.
Defence Services
The minister said that the allocation for defense and services is Rs. 1289 billion.
Fisical startegy
The minister outlined the main features of the new fiscal strategy and said that the new budget did not impose any new taxes to relieve the population.
He added that the proposed tax incentives will help boost economic activity in the country.
Hammad Azhar said the new budget aims to strike a balance between corona spending and budget deficits. The goal is also to achieve a primary balance.
The current account deficit is limited to 4.4 percent. Inflation has fallen from 9.1 percent to 6.5 percent. Foreign direct investment increases by 25 percent.
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Ehsaas Program
The minister said he would continue to devote social expenditure within the Ehsaas program to supporting vulnerable and vulnerable groups and will continue to help people tackle the corona virus in the coming fiscal year.
Hammad Azhar said the budget document also seeks to keep the development budget at an appropriate level so that the goals of economic growth can be achieved and jobs created.
He said the budget of the Ehsaas program had increased to Rs. 208 billion of the existing $ 187 billion. The amount will be used transparently for vulnerable populations.
No New Taxes
He said much attention was paid to the country's defense and external security. The budget aims to improve revenues without unnecessarily changing taxes.
Industry Minister Hammad Azhar explained the goals for the next fiscal year, saying the GDP growth target was set at 2.1 percent, which was still negative at four percent in the past fiscal year.
Circular Debt
Hammad Azhar said the government is focused on improving the electricity transmission system and reducing circular debt.
HEC
He said the government has increased the university commission's budget from 59 billion rupees to 59 billion rupees. 64 billion.
Industry and Manufacturing Minister Hammad Azhar said that supporting the poor and vulnerable populations is a top priority for the government. To this end, an integrated system has been developed which brings together all relevant institutions for newly created poverty alleviation and social security.
In total, SEK 179 billion has been made available for various subsidies in the energy, food and other sectors.
Naya Pakistan Housing Scheme
The minister said the government has provided an amount of Rs to the Naya Pakistan Housing Authority. 30 billion To give people cheap housing.
Qarze-e-Hassan
In addition, the Qarze-e-Hassan scheme will pay DKK 1.5 billion. Dollars through the Akhuwat affordable housing fund.
AJK & GB
Hammad Azhar said that 55 billion. Dedicated to Azad Kashmir and Rs. 32 billion for Gilgit-Baltistan.
Special Incentive for Balochistan
In addition, a special credit of nine billion rupees and Baluchistan of ten billion rupees were made in addition to their share of the NFC.
The minister said during the steps to improve transfers a total of Rs. 25 billion earmarked for banking income.
Railway Projects
He said he would provide the Pakistanis with affordable transportation services, an amount of the Pakistan Railways received 40 billion.
Rs. 24 billion Is also earmarked for ML-1 and other Pakistani railway projects and additional rupees of 37 billion for other communication projects.
Kamyab Jawan Program
Regarding youth benefit payments, the minister said two billion rupees had been allocated to the youth capacity building program in Kamyab Jawan. He said that a total of Rs. 13 billion was reserved for state-run hospitals in Lahore and Karachi. He said more than a billion rupees were e-governance to improve public services.
Artists Aid Fund
The minister said at the suggestion of President Dr. Arif Alvi, the amount for the artist aid fund has been increased by the existing Rs. 250 million for Rs. 1 billion.
IT & Technology
Minister of Industry and Production, Hammad Azhar, stressed the need to improve the capacity of research institutions to achieve the goals of the knowledge economy.
He said the rollout of e-governance, IT-based services and 5G services will remain central to the government. An amount of Rs. 20 billion For projects in these sectors.
Climate Changes
The minister said $ 6 billion had been allocated. Rupees to deal with the effects of climate change.
He said Rs. The TDPs were allocated 20 billion rupees.
Rehabilitation
Rs. 2 billion has been provided to support the rehabilitation of Afghanistan.
An amount of Rs. 24 billion To achieve the sustainable development goals while Rs. 12 billion Used in development projects in the agricultural sector to ensure food security.
The minister said that the government is pursuing a savings policy during these difficult times.
He said we are grateful to the Pakistan Armed Forces for expanding cooperation on government austerity measures.
Sale Tax
Hammad Azhar made tax proposals and said it had been proposed to reduce the point-of-sale tax rate from 14 percent to 12 percent to relieve ordinary people and retailers after COVID-19.
He said that sufficient funds had been allocated to supply electricity to the special economic zones and to projects to be completed with foreign funds. The government has made Rs available for this. 80 billion. These funds are mainly used to narrow the gap between supply and demand.
Water Related Projects
The minister pointed out that Pakistan is suffering from a serious water shortage. He said the government had been allocated water-related projects and Rs this year. 69 billion in that regard.
Sufficient resources have been made available for large projects such as the Diamer Bhasha Dam, the Mohmand Dam and the Dasu Dam.
The minister said that these projects will not only contribute to increasing water storage capacity and electricity generation, but will also create thirty thousand additional jobs.
CPEC Projects
In particular, adequate resources have been made available for the CPEC-related projects, including the Western Route. To this end, 118 billion rupees were made available.
Health
On the challenge that COVID-19 poses to the health sector, Hammad Azhar said that Rs. 20 billion Is committed to improving the capacity of health facilities and the production of health equipment to provide better healthcare and disease control in the country.
He was convinced that the provincial authorities will also contribute to the fight against COVID-19.
Education
As for the education sector, Hammad Azhar said, 5 billion has been allocated. Dollars for reform in this sector. He said steps are being taken to introduce a unified curriculum and quality assessment system, establish smart schools and bring the seminars into the national mainstream.
He said higher education was one of the top priorities of the government. He said that Rs. 30 billion Was committed to innovation in higher education to improve research and development in areas such as artificial intelligence, automation and space technology.
He said the smallest hotel tax dropped from 1.5 percent to 0.5 percent in April from April for six months. He said a mobile application has been introduced to make it easier for employees to file their tax returns, resulting in a 37 percent increase.
Tax Filling
He said an automatic system for filing tax returns has been put in place. He said the seizures seen as a result of the anti-smuggling campaign led to an increase of Rs. 19 to 30 billion.
The minister prepared emergency measures and said the ceiling for purchases without ID was raised by Rs. 50,000 to 100,000 rupees.
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Sale Tax Exemption
He said imports of dietary foods for medical purposes would be exempt from sales tax, while exemptions for imports of medical devices would increase by another three months.
Tax increased
The minister said federal taxes on imported cigarettes and tobacco will rise from 65 percent to 100 percent, while adding e-cigarettes and other tobacco substitutes to this list.
To prevent consumption of caffeine-based energy drinks, the FED is increased from 13 percent to 25 percent.
He said it had also been proposed to levy a tax on double-cab pickup vehicles because wealthy people use these pickups as status symbols.
