Federal Budget 2019-20 Prepared By Students of UoP

0
70

Budget 2019-20: It is assumed to increase PSDP and raise defense spending to Rs.1.4 trillion
our corespondent
peshawar
The newly appointed leader of the budget committee of economics department of university of Peshawar Hamid Usman has presented a first full-term budget in the Economics department on Tuesday 14,2019.
“This is a historic moment for the economics department that the 1st federal budget is being presented here. A government cannot run for a day without the budget. The provincial governments cannot decide their budgets without approval of the federal budget,” Hamid explained.
Salient features of supposed budget 2019-20:
The supposed budget hikes current expenditure and cuts development.
Bank borrowing estimated at Rs.1,215.3bn, roughly 0.30 times the borrowing last year.
Defense budget will experience 5% increase from last year.
“Today’s budget is a reflection of Ex-finance minister Asad Umar’s vision. We are missing him here today”.
“In 2018 the PTI government came to power and set up a programme for the economy. New government is still facing challenges under the leadership of Imran Khan. Serving the public is our only motivation,” he added.
Due to severe economic situations, large scale corruption, black economy, and low tax to GDP ratio, the size of the Pakistan economy has collapsed unusually.
Hamid suggested that government should use data mining and other technologies to catch tax thieves.
“We are giving people one last chance to declare their domestic assets and became registered tax payer in the form of tax amnesty scheme. We will catch and prosecute them if they do not avail our tax amnesty scheme,” he asserted.
Budget strategy 19-20
Expenditure for the government in FY19-20 has been set at Rs.6.085 trillion.
The target GDP growth rate for the upcoming fiscal year has been set at 6.4pc against FY18-19’s target of 6.2pc.
The government intends to reduce the inflation rate from 9.4pc to 7pc and keep it below 7pc.
The intended tax to GDP ratio is 19pc,, while net public debt is targeted to be contained at 62.4pc of the GDP. The budget deficit is also targeted to be contained at 5.5pc of GDP.
A $20bn target for forex reserves has been set in FY19-20.
As part of the budget strategy, social protection programmes will be continued in the upcoming fiscal year.
“Our macroeconomic policy aims to address the imbalances of the external account, while protecting economic growth and producing ease of doing business.
“Over the full-term we propose to continue reduction of fiscal deficit and maintain a cautious monetary stance. Priority should be accorded to reducing losses in the public-sector enterprises and expanding tax base”.
Revenue
The total revenue target is Rs.5517bn, of which the FBR taxes comprise Rs.4997bn. “this target will be achieved through improved tax system and improved tax administration. The tax base is being expanded and the percent of tax is being increased,” the chairman said. The government expects the tax net will see a considerable increases as it estimates the revenue from direct taxes to increase. To bridge the large scale gap in expenditure and revenue of the country it is estimated to impose new GST of Rs.900bn for the upcoming fiscal year.
Expenditure:
The budget hikes development expenditures and cuts current expenditures. The hike in development expenditure is roughly 10pc, while current expenditure has been cut 10pc. The share of current and development expenditure respectively in the total budgetary outlay is 81pc and 21pc. Current expenditure has been estimated at Rs.4807bn, while development expenditure is set at Rs.1277bn.
Defense
The defense budget has been set at Rs.1396bn from a revised budget estimate of Rs.1100bn in the previous year.
PSDP
The size of the FY19-20 PSDP has been estimated to be Rs.1680bn, of which Rs.870bn has been allocated to the provinces, while Rs.810bn has been allocated to the federal government. Investment in the water, road infrastructure, electricity sectors and China-Pakistan Economic Corridor will be protected.
Under the PSDP, Rs.43bn has been allocated to the Higher Education Commission, Rs.40bn for basic health and Rs.9bn for interest free loan scheme and health subsidies.
Salaries and pensions:
Considering the stress economic situations new formula has been developed for the increase in salaries.
According to the formula increase in salaries will be made through job scale. Salaries of Bps 04-11 will be increased from 12pc to 15pc and Bps 12-16 will be increased from 08pc to 12pc and Bps 17 – 22 will be increased from 06pc to 10pc. There is no as such increase in pensions is made. The formula has been developed for supporting low paid class of the society.
Pakistan is the sixth large country in the world and a strong rising economy.
The nature has bestowed this country with abundant resources. We have now laid the foundation of growth. Based on this, our talented brothers and sisters can make this country as one of the greatest.
This budget has been prepared by students of Bs economics 4th semester group-1 university of Peshawar in the leading of Hamid Usman. Special thanks to sir Shahid and my members who made this difficult task possible for us.