Development in focus
The PSDP has been increased to Rs2,135 billion for FY22, up 37 per cent from Rs1,324 billion last year | Government sets minimum wage at Rs20,000 | no new tax imposed on salaried class, economic growth target set at 4.8%
A pro-people, business friendly and growth oriented federal budget for fiscal year 2021-22 with a total outlay of 8,487 billion rupees has been announced.
Presenting the budgetary proposals for the next fiscal year in the National Assembly on Friday, Minister for Finance Shaukat Tarin said the budget focuses on Prime Minister Imran Khan’s vision of a strong and sustainable growth driven Kamyab Pakistan.
The Finance Minister said the main objectives of the budget are to strike a balance between fiscal deficits due to covid-19 and boosting growth of economy besides keeping a primary balance at a sustainable level.
He said the gross revenues for the next fiscal year have been estimated at 7909 billion rupees compared to revised estimate of 6395 billion rupees for the outgoing fiscal year. This shows a handsome growth of 24 percent in gross revenues.
The Minister said the FBR revenues are projected to grow by 24 percent from 4691 billion rupees to 5829 billion rupees. Non-tax revenues are projected to grow by 22 percent.
Shaukat Tarin said the provincial share in federal taxes would increase from 2704 billion rupees last year to 3411 billion rupees. This means an additional 707 billion rupees or 25 percent increase.
He said this should enable the provinces to spend resources on development and critical social sectors like health, education, population welfare, youth, women development, sports and labour welfare.
After provincial transfers, the net federal revenues are estimated at 4497 billion rupees compared to 3691 billion rupees under the revised estimate for last year.
This shows a growth of about 22 percent. The overall deficit for 2021-22 is estimated at 6.3 percent as opposed to the revised estimate of 7.1 percent for current fiscal year. Primary deficit is targeted at 0.7 percent.
Despite COVID-19, the government has continued on the path of reduction of primary deficit, which he said is a great achievement.
Shaukat Tarin said the federal development spendings are being increased from 630 billion rupees to 900 billion rupees, which is an increase of around 40 percent.
He said it is imperative that government expenditures are minimized and their utility is ensured. Therefore, he said, we will continue to be austere throughout the government.
He said subsidies are projected at 682 billion rupees up from 430 billion rupees. These mostly comprise due payments of Independent Power Producers, tariff differential subsidies and concessions on food.
The Finance Minister said Prime Minister Imran Khan wants to change the course of the history by uplifting four to six million low income households through bottom-up approach from next year.
He said every household will be provided 500,000 rupees interest free business loans. Every farming household will be given 2050,000 rupees interest free farming loan and 200,000 rupees for tractors and machineries.
These families will be provided with low interest housing loans up to two million rupees so that they can build their houses. Every household shall be provided with a Sehat Card and one percent from every household will be provided free technical training.
Through this action we are giving a comprehensive package to the low-income group people; slogan of which was raised by many leaders in the past but nothing was delivered. He said this is an essential requirement of Imran Khan’s promise of Riasat-e-Madina.
The Finance Minister said the major initiative of the government for social protection and poverty alleviation is the Ehsaas Programme.
For this program, 260 billion rupees are being proposed in the next budget, which is by far the largest allocation and reflects the vision of the Prime Minister to help the extreme poor segments of the society.
