ISLAMABAD – Federal budget for the next fiscal year with an outlay of 5246billion rupees has been announced.
Minister for Finance Miftah Ismail presented budgetary proposals at theNational Assembly today (Friday).
The federal gross revenue receipts are estimated at 5661 billion rupees ascompared to 4992 billion rupees in the outgoing year.
This includes FBR’s tax estimates of 4435 billion rupees as against revisedestimates of 3935 billion rupees for the current financial year.
Out of the total revenues, the provincial governments’ share is estimatedto 2590 billion rupees as compared to 2316 billion rupees revised estimatesfor the current financial year.
After transfer to the provincial governments, the net revenue of thefederal government is estimated at 3070 billion rupees for the next year ascompared to revised estimates of 2676 billion rupees in the currentfinancial year.
The interest payments for next year have been budgeted at 1620 billionrupees against the revised target of 1526 billion rupees for the outgoingyear.
The defense budget is proposed at 1100 billion rupees against the revisedbudget of 999 billion rupees in the outgoing year.
Budget deficit will be four point nine percent of the GDP as opposed tofive point five percent of GDP of revised budget estimates in the outgoingyear.
The Finance Minister announced ten percent adhoc relief allowance to thecivil and armed forces employees and ten percent increase in pensionsacross the board.
House rent ceiling and house rent allowance have also been increased byfifty percent each.
Minimuum pension is being increased from the existing six thousand to tenthousand rupees considering the difficulties of low paid pensioners.
Similarly, family pension would also get increase from 4500 rupees to 7500rupees.
Minimum pension of pensioners above seventy five years of age would befifteen thousand rupees.
The government has also proposed an allocation of twelve billion rupees forprovision of advances to government servants for house building andpurchase of transport facility.
It has also set aside five billion rupees for senior officers’ performanceallowance, details of which would be announced separately.
Over time allowance of staff car drivers and dispatch riders is beingincreased from forty rupee per hour to eighty rupee per hour.
The finance minister said the financial impact of these proposals will besixty nine billion rupees.
Miftah Ismail said despite many difficulties and challenges, the governmentachieved economic stability over the last five years and took the growthrate to the record level.
Highlighting the economic performance of incumbent government, the FinanceMinister said GDP ratio remained five point eight percent during thecurrent fiscal year which is the highest in the last thirteen years.
He said volume of economy over the last five years has increased to thirtyfour thousand, three hundred and ninety six billion rupees.
Finance Minister said per capita income has increased to over one hundredand eighty thousand rupees. Today, the country has become the twenty fourthbiggest economy.
He said the agriculture sector grew by three point eight percent,industrial sector by five point eight percent, services six point fourpercent during the current fiscal year.
Miftah Ismail said government also controlled the inflation rate to threepoint eight percent. The food inflation remained two percent.
Finance Minister said budgetary allocations for Benazir Income SupportProgram for the next financial year have been increased to 124.7 billionrupees as against 121 billion rupees in the outgoing year.
The Minister said government has launched a national poverty graduationprogram for BISP beneficiaries with more than nine point five billionrupees.
Under this program beneficiaries willing to start their own businesses willbe provided with a one-time cash grant of fifty thousand rupees to starttheir own business.
Miftah Ismail said that 688 million rupees are being allocated for PakistanPoverty Alleviation Fund.
He said the scheme launched by PML (N) government in 1991 to pay the loansof widow borrowers from house building finance corporation up to the valueof 3.5 lac rupees would continue next year with an increased limit of sixhundred thousand rupees.
Miftah Ismail also announced several relief measures for agriculture, dailyand poultry sectors.
These include withdrawal of three percent custom duty on import of bullsmeant for breeding purposes.
Concessionary rate of customs duty on the import of feeds meant forlivestock sector is being reduced from ten percent to five percent and fansmeant for use in dairy farms be allowed a concessionary rate of threepercent to members of corporate dairy association.
This will substantially reduce their cost of inputs and boost furtherexpansion in respect of poultry sector.
The government announced that the rate of customs duty of eleven percent oncorrective eyesight glasses would be reduced to three percent.
The Finance Minister announced that enabling provisions are proposed to beincorporated in the income tax ordinance to implement property transactions.
Under the proposals, property transactions will be recorded on the valuedeclared by the buyer and the seller and FBR notified rates are proposed tobe abolished.
At the federal level, one percent adjustable advance tax from the purchaseron the declared value is proposed to replace the existing withholding taxon sellers and purchasers.
It is proposed that the non-filers may not be permitted to purchaseproperty having declared value exceeding four million rupees.
The provinces have been asked to abolish the provincial rates for thecollection of stamp duty and to collect a total of one percent tax understamp duty and capital value tax on the value declared by the buyer and theseller.
To discourage under declaration, the FBR may hold a right to purchase anyproperty within six months of registration by paying a certain amount overand above the declared value which may be hundred percent in the nextfiscal year, seventy five percent in the following year and fifty percentin the subsequent year.
Prior to Miftah’s presentation, Prime Minister Shahid Khan Abbasi has saidthat PML-N government considers its responsibility to present budget to runthe affairs of the government.
He was responding to points raised by Leader of the Opposition in NationalAssembly Khurshid Shah and PTI leader Shah Mehmood Qureshi in the lowerhouse of parliament this afternoon.
He said the next government has the complete authority and right to makechanges in the budget.
He said Miftah Ismail will present the budget and it is the decision ofcabinet and there is nothing unlawful in it. He said right of presentingthe budget belongs to that person who prepares and makes budget with hardwork and dedication.
The Prime Minister said Rana Muhammad Afzal, as Minister of State forFinance, assisted Miftah Ismail in the preparation of budget. He said thebudget presents unprecedented relief to the people of Pakistan.
Shahid Khaqan Abbasi says the government is going to provide great reliefto the masses in the budget for next fiscal year.
He said that it was cabinet decision that Miftah Ismail will present thebudget and there is nothing wrong in this.
Opposition leader in the National Assembly Syed Khursheed Ahmed, on a pointof order, criticized the government for forwarding a non-elected person topresent the federal budget. He said that the Prime Minister could havepresented this budget or asked State Minister for Finance Rana MuhammadAfzal, who is an elected person of this house to present the budget.
He said that the government is going to complete its tenure and presentingfederal budget for the whole year should be left for the next government.
Talking floor, PTI Leader Shah Mehmood Qureshi also voiced that RanaMuhammad Afzal should present the budget.
Later, the opposition walked out of the House.