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The federal government of Pakistan has announced the next fiscal year 2020-21

Presented a federal budget of Rs. 7294.9 billion for which no new tax was imposed to provide relief to the people.

A meeting of the National Assembly was held under the chairmanship of Speaker Asad Qaiser in which the Federal Minister for Economic Affairs Hamad Azhar presented the budget.

3437 billion budget deficit:

The federal revenue in the budget is estimated at Rs. 3700 billion and expenditure is Rs. 7137 billion, thus the budget deficit is Rs. 3437 billion which is 7% of GDP.

1289 billion defense budget:

The budget has set a target of Rs 4963 billion for FBR tax collections while the defense budget has been set at Rs 1289.134 billion.

Railways, education, electricity:

Rs 40 billion for Pakistan Railways, Rs 30 billion for education, Rs 20 billion for health, Rs 80 billion for energy and power, Rs 12 billion for food and agriculture, Rs 12 billion for climate change to provide affordable transport to the people. Rs 6 billion, Rs 20 billion for science and technology, and Rs 118 billion for national highways.

Locusts, successful young people, agriculture:

Rs 10 billion has been allocated for locust heart eradication, Rs 2 billion for the successful youth program, and Rs 1 crore has been allocated for financial assistance to artists.

The share of provinces is 2873.7:

In the next budget, it has been decided to review the NFC award. The total revenue is estimated at Rs. 6573 billion, of which FBR’s revenue is Rs. 4963 billion and non-tax revenue is Rs. 1610 billion. The share is Rs. 2873.7 billion.

Coronavirus package:

A package of more than Rs. 1,200 billion has been approved for the eradication of coronavirus, Rs. 71 billion has been allocated for the purchase of medical equipment and Rs. 150 billion has been allocated for poor families.

Special grant:

In the budget proposals, Rs 100 billion has been set aside for the emergency fund. A special grant of Rs 55 billion has been earmarked for Azad Jammu and Kashmir, Rs 32 billion for Gilgit-Baltistan, Rs 56 billion for integrated districts in Khyber Pakhtunkhwa, Rs 19 billion for Sindh and Rs 10 billion for Balochistan.

Reduction in the federal development budget:

The federal development budget for the next financial year is being reduced by Rs 51 billion over the previous year. The total federal development budget will be Rs. 1324 billion, Rs. 650 billion for federal ministries and divisions and Rs. 674 billion for the provinces.

Reduction in tax on the hotel industry:

It is proposed to reduce the tax rate on the hotel industry from 1.5 percent to 0.5 percent for six months.

Double cabin cars and e-cigarettes expensive, local mobile phones cheap:

The budget proposes to increase taxes on double-cabin vehicles, e-cigarettes, and imported machinery and reduce taxes on locally manufactured mobile phones.

Cabinet meeting:

Earlier, the federal cabinet approved the budget for the next financial year and decided not to increase salaries and pensions in the current context. A meeting of the Federal Cabinet was held under the chairmanship of Prime Minister Imran Khan in which a budget of Rs. 7600 billion was approved for the next financial year.

The decision not to increase salaries and pensions:

According to sources, the cabinet has decided not to increase the salaries and pensions of government employees and also approved not to impose any new tax in the budget.

The salaries of government employees and the pensions of retired employees will remain the same as last year. Some cabinet members demanded an increase in salaries and pensions, but the finance ministry refused, saying the increase was not possible in the current economic climate.

 

The limit for ID card transactions has been increased:

The limit for traders to transact without an identity card has been raised to Rs 100,000.

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