LIVE: Hammad Azhar Announces Rs7,022 billion Budget for 2019-20

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LIVE: Hammad Azhar Announces Rs7,022 billion Budget for 2019-20

State Minister for Finance Hammad Azhar is presenting the budget in the National Assembly.

According to the budget documents, there is no increase salary for the Grade 21 and 22 officials.

  • 10 per cent increase for Grade 1 to 16 as adhoc relief
  • 5 per cent increase for Grade 17 to 20 as adhoc relief
  • 10 per cent increase in pension
  • Up to Rs200 billion allocated for subsidies
  • 80,000 deserving people will get interest-free loans
  • Minimum wage set at Rs17,500
  • A ration card scheme is being introduced. 80,000 people will benefit from this scheme with interest-free loans. 60,000 women will be given access to mobile phones.

DEVELOPMENT BUDGET:

  • The National Development Programme will have a total size of Rs1,800 billion
  • Of this, Rs950 billion will be spent by the federal government
  • Rs70 billion on dam projects. Rs15 billion and 20 billion respectively for Bhasha and Mohmand dams land acquisition
  • Rs55 billion for Dasu hydro power project
  • Rs24 billion have been earmarked for Havelian Thakot motorway
  • Samrial Kharian motorway to also be constructed
  • Govt has earmarked Rs60 billion for human development
  • Higher education will receive Rs45 billion
  • Agriculture will receive Rs1.2 trillion in the federal development budget
  • 5 billion have been set aside for nine projects in Karachi
  • Balochistan development package to get Rs10.4 billion and Rs30 billion for water projects
  • Rs45.5 billion allocated for Karachi’s development programme
  • Rs152 billion to be provided to FATA as part of a 10-year project totaling Rs1 trillion
  • Rs 1,800 billion for PSDP

Total Outlay and Related Details

  • Budget outlay is Rs7,022 billion — 30 per cent higher than last year
  • Federal revenues to be Rs6,717 billion — 19 per cent higher than last year
  • FBR tax target set at Rs5,550 billion
  • Tax-to-GDP ratio to be increased to 12.6 per cent
  • Rs3,255 billion to be disbursed to provinces via the 7th NFC award — 32 per cent higher than last year
  • Net federal reserves to touch Rs3,462 billion, 13 per cent higher than last year
  • Budget Deficit — Rs3,560 billion
  • Provincial surplus budgeted at Rs423 billion
  • Total fiscal deficit Rs3,137 billion — 7.1 per cent of GDP, compared to 7.2 per cent of GDP last year
  • Budget deficit to be Rs3,560 billion
  • Tax revenue target set at Rs5,822 billion
  • Non-tax revenue target set at Rs894 billion
  • Current expenditure set at Rs6,192 billion
Related Post:   Hafeez Shaikh Claims that Budget Not A Product of IMF Dictation

General Sales Tax (GST)

  • GST on goods to remain unchanged and remain at 17 per cent
  • Food items supplied to bakeries and restaurants will be taxed at 4.5 per cent
  • GST on sugar to be increased from 6 per cent to 17 per cent

 

Provincial Share in Federal Taxes

  • Punjab Rs1611.36 billion
  • Sindh Rs 814.91 billion
  • Khyber Pakhtunkhwa Rs533.26 billion
  • Balochistan Rs264.98 billion

 

Tax proposals

  • Tax-to-GDP ratio to be increased to 20 per cent from 12 per cent
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