ISLAMABAD – Federal Minister for Finance Miftah Ismail Friday unveiling abudget outlay of Rs 5.932 trillion, announced a growth oriented budgetsetting the GDP growth target for 2018-19 at 6.2 percent with the ever highproposed revenue generation at Rs 4435 billion against total expenditure ofRs 5246 billion.

Finance Minister claimed that with these achievements Pakistan has becomethe 24th largest economy of the world.

Presenting the sixth budget of the Pakistan Muslim League(N) governmentbefore the general election, Miftah Ismail said the main targets includekeeping inflation below 6 percent.He said the government is set to achieve a growth target of 5.8 percent forthe current year, the highest in the last 13 years putting Pakistan amongthe fastest growing economies.

The high growth rates over the last five years have produced unprecedentedeconomic expansion. Size of the economy expanded from Rs 22,385 billion inFY 2013 to Rs 34,396 billion in FY 2018, while per capita income increasedfrom 129,005 in 2013 to Rs 180, 204 billion, he added.Last year, the government achieved GDP growth of 5.4 % which was thehighest growth rate in the last 10 years. In contrast, the average GDPgrowth during the period 2008-12 was a paltry 2.8 percent per annum.For next year, the federal gross revenue is estimated at Rs 5,661 billion.As compared to revised estimates of Rs 4992 billion in 2017-18, this ishigher by 13.4 percent.This includes FBR tax estimate of Rs 4,435 billion as compared to revisedestimate of Rs 3,935 billion for current year.

Out of the total revenues, the provincial governments share is estimated tobe Rs 2590 billion as compared to Rs 2316 billion revised estimates for2017-18, showing an increase of 11.8 percent.After transfer to provincial governments, the net revenue of the FederalGovernment is estimated at Rs 3,070 billion in 2018-19 as compared torevised estimates of Rs 2676 billion in the current financial year. Totalfederal expenditure for 2018-19 is budgeted at Rs 5932 billion, compared tothe revised estimates of Rs 4857 billion for 2017-18, showing an increaseof 8 percent.

Interest payments for 2018-19 have been budgeted at Rs 1620 billion againstthe revised budget of Rs 1526 billion for 2017-18. The defence budget isproposed at Rs 1100 billion against the revised budget of Rs 999 billion inthe current year.Total size of federal public sector development programme would be Rs 1030billion against the revised estimates of Rs 750 billion. Provincial surplusis estimated at Rs 286 billion against revised estimate of Rs 274 billion.Budget deficit will be kept at 4.9 % of GDP as opposed to 5.5% of GDP in2017-18.While giving details of the past years performance, he said the agriculturesector showed the highest growth in the past 18 years of 3.8 percent.Industrial production grew by 5.8 percent. Services sector includingbanking, retail, transportation, showed a remarkable growth of 6.4 percent.

Inflation considered the biggest tax on poor people, was at average of 5percent in the last five years, compared to 12 percent between 2008-13percent. In nine months of this year, inflation was only 3.8 percent whilefood inflation was only 2 percent.The fiscal deficit was contained below 5.5 percent of GDP while in 2013 thefiscal deficit was at 8.2 percent. In 2013, FBR tax collection was at 1,946billion while for the current year, the revenue is projected to increase toRs 3,935 billion.The State Bank kept the policy rate at 5.75 percent in 2017, which was thelowest in many decades, allowing businesses and industry to grow and createjobs.

The government increased target of agriculture credit from Rs 315 billionin 2013 to Rs 1001 billion in 2018, For the next year, the target is beingincreased to Rs 1100 billion.The minister also informed that the local film industry will be provided afiscal package, including reduction in custom duty to 3 percent on theimport of equipment, a rebate of 50 percent in income tax to companiesinvesting in film projects and 50 percent tax rebate to income derived byforeign film makers.

Miftah said another new programme “100 100 100” will be launched to ensure100% Pakistani children are enrolled in schools.Other notable programmes include Rs 10 billion to address the problem ofchild stunting, Rs 35 billion for railways with a plan to increase thespeed of trains from Peshawar to Karachi by 3 times from 55 km to 160 km byhour by 2021.

The government in five years added 12,230 megawatts to the national gridand will invest a further Rs 138 billion in power sector while Rs 310billion will be spent on construction of motorways.The minister told that Rs 44.7 billion is proposed for AJK and GilgitBaltistan and Rs 24.5 for Federally Administered Tribal Areas (FATA).

Rs 10 billion has been approved to implement a ten year development planfor FATA and Rs 90 billion for rehabilitation of millions of people who hadto leave their homes in the areas of military operations.The government is enhancing PSDP allocations for Higher EducationCommission to Rs 57 billion and will allocate Rs 37 billion for primaryhealth programmes and Rs 10 billion for youth programme. Rs 137 billion areproposed for development of Gwadar port. – APP