The Pakistan Tehreek-e-Insaf (PTI) government is presenting its first Federal Budget for the fiscal year 2019-20 with an estimated cost of Rs6 trillion.
The federal budget 2019-20 is being presented by Minister of State for Revenue Hammad Azhar.
Azhar said, “There has been no increase in exports in the past five years.”
“Due to financial mismanagement, the deficit reached Rs2260bn. Circular debt in the energy sector reached Rs1200bn,” he said.
Measures taken by the PTI-led government have resulted in remittances rising by $2bn, and Rs12bn decrease per month in circular debt in the energy sector, he said.
Azhar said that the 11 per cent tax to GDP ratio currently, was the lowest in the region. There were only 50 per cent of SECP registered companies paying tax. “We will have to change this culture,” he added.
Prime Minister Imran Khan had arrived in the National Assembly for the budget session.
During the budget presentation, members of the opposition protested in front of the NA speaker’s dais, chanting slogans against the government and the PM.
Budget Review 2019-20 (Salient Features)
- The resource availability during 2019-20 has been estimated at Rs 7,899.1 billion against Rs 4,917.2 billion in the budget estimates of 2018-19.
- The provincial share in federal taxes is estimated at Rs 3,254.5 billion during 2019-20, which is 25.7% higher than the budget estimates for 2018-19.
- The expenditure on General Public Services is estimated at Rs 5,607.0 billion, which is 76.9% of the current expenditure.
- The overall expenditure during 2019-20 has been estimated at Rs 8,238.1 billion, out of which the current expenditure is Rs 7,288.1 billion.
- The net capital receipts for 2019-20 have been estimated at Rs 831.7 billion against the budget estimates of Rs 443.1 billion in 2018-19 reflecting an increase of 87.7%.
- The total outlay of budget 2019-20 is Rs 8,238.1 billion. This size is 38.9% higher than the size of budget estimates 2018-19.
- The net revenue receipts for 2019-20 have been estimated at Rs 3,462.1 billion indicating an increase of 12.8% over the budget estimates of 2018-19.
- The external receipts in 2019-20 are estimated at Rs 3,032.3 billion. This shows an increase of 171.2% over the budget estimates for 2018-19.
- The development expenditure outside PSDP has been estimated at Rs 85.8 billion in the budget 2019-20.
- The size of Public Sector Development Programme (PSDP) for 2019-20 is Rs 1,613 billion. Out of this, Rs 912 billion has been allocated to provinces. Federal PSDP has been estimated at Rs 701 billion, out of which Rs 348.2 billion for Federal Ministries/Divisions, Rs 348.2 billion for Corporations, Rs 5 billion for Earthquake Reconstruction and Rehabilitation Authority (ERRA), Rs 17 billion for Relief and Rehabilitation of IDPs, Rs 53 billion for Security Enhancement, Rs 5 billion for Prime Minister’s Youth Skill Development Initiative, Rs 2 billion for Clean Green Pakistan Movement/Tourism, Rs 1 billion for Gas Infrastructure Development Cess, Rs 48 billion for Merged Areas of FATA 10 Years Development Plan and Rs 24 billion for Pakistan Sustainable Development Goals (SDGs) and Community Development Programme.
- To meet expenditure, bank borrowing has been estimated for 2019-20 at Rs 339 billion, which is lower by 688.7 billion than the revised estimates 2018-19 reflecting decrease at 75%.
- Total budget outlay Rs7,022bn—30% greater than previous year
- Rs1,863 billion fixed for Public Sector Development Programme
- Budget deficit to be Rs3,560 billion
- Tax revenue target set at Rs5,822bn
- Non-tax revenue target set at Rs894bn
- Current expenditure set at Rs6,192bn
- 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.
- Rs7,579 million allocated for climate change
- Rs1,000 million earmarked for Kartarpur development
- Rs 1.863tn allocated to PSDP, stressing balanced progress
- Minimum taxable income for salaried class to be Rs0.6mn per annum
- Minimum taxable income for salaried class to be Rs0.4mn p.a.
- Non-filers no more restricted from purchasing property
- Non-filers to be allowed to purchase property of over Rs5mn
- 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
COMPLETE BUDGET OVERVIEW: