Federal Finance Minister Shaukat Tareen is presenting the federal budget for the financial year 20-2021 in the National Assembly.
The main points of the budget speech of Federal Finance Minister Shaukat Tareen are as follows:
- The volume of the federal budget has been kept at Rs. 8,487 billion. The current account deficit of Rs. 20 billion was surpassed in April 2021.
- Under the leadership of Imran Khan, the economy has been brought to the shores from many storms, the cash assistance of the Ehsas program has been increased, we have moved from stability to economic growth.
- The government has succeeded in putting the country on the path of development, economic growth has been recorded in every sector.
- Production of all crops except cotton increased.
- There was a significant increase in the services sector, which reduced poverty.
- The third wave of corona virus objected to the massive closure of businesses, the government has not faced such a bad situation in the past.
- Per capita income has increased by 15%, minimum wage is being increased to Rs 20,000 per month, 10% ad hoc relief will be provided to federal government employees, pension of all pensioners will be increased by 10%, Ardali Allowance It is being increased from Rs 14,000 to Rs 17,000.
- Employment opportunities were created in the large scale manufacturing sector.
- Despite the corona virus outbreak, per capita income increased by 15%.
- Exports increased by 14% this year.
- Tax collection in the country has crossed the psychological threshold of Rs 4,000 billion, tax collections have improved by 18%, tax refund payments have increased by 75%, this year has seen a remarkable growth in exports.
- Remittances have risen by a record 25%, the value of the rupee has risen significantly.
- Sales tax rate for electric vehicles reduced from 17% to 1%.
- The current account deficit was a very bad challenge in 2018 and it has been overcome.
- Overseas Pakistanis played an important role in improving the accounts.
- Current account deficit has become surplus.
- The increase in remittances from abroad is due to confidence in Imran Khan’s leadership.
- It is proposed to reduce the rate of federal excise duty on telecommunications from 17% to 16%.
- Remittances from abroad have increased by 25%.
- Crude oil prices rose 180 percent over the previous year.
- Sugar prices rose 56 percent internationally, while sugar prices rose 18 percent domestically.
- The economic growth target for next year is 4.8.
According to the budget document presented earlier, the budget for the financial year 22-2021 is Rs 8487 billion, tax collection target is Rs 5829 billion, non-tax revenue collection target is Rs 2080 billion, total tax and non-tax revenue target is Rs 7909 billion. Rs.
According to the document, the government will borrow Rs 681 billion from the banking sector to cover the budget deficit, the government will borrow Rs 1922 billion from the banking and non-banking sectors, and the federal government’s non-development expenditure is estimated at Rs 7523 billion.
Rs 3060 billion will be spent on interest payments on domestic and foreign loans, the government will borrow a total of Rs 1246 billion worth of foreign loans, the government will get domestic loans worth Rs 2417 billion in the new financial year, global financial Rs 369 billion will be obtained from institutions.
Rs 877 billion will be obtained from international commercial banks, total civil and military pensions will be Rs 480 billion, Rs 1370 billion has been allocated for defense budget, Rs 1168 billion has been allocated for development and non-development grants of the provinces.
The subsidy budget for all sectors including electricity, gas, food items has been set at Rs 682 billion, Rs 479 billion has been allocated for civil government expenditure, prevention of Corona virus outbreak and other emergency expenditure. Rs 100 billion has been allocated for this.
In the federal budget, Rs. 1168 billion has been allocated for development and non-development grants of the provinces. The budget of subsidy for all sectors including electricity, gas, food and beverages has been fixed at Rs. 682 billion, for the expenditure of civil government. Rs 479 billion has been allocated.
Rs 160 billion has been allocated for salaries and other benefits, Rs 964 billion has been allocated for the development budget, the annual federal development program will be Rs 900 billion, Rs 64 billion will be paid to the provinces in terms of loans.
A target of Rs 252 billion has been set for the privatization of national institutions in the new financial year. The total expenditure in the new financial year will be estimated at Rs 8487 billion.