Federal Minister of Finance, Ishaq Dar, is presenting the budget for the fiscal year 2023-2024 #budget 2023-2024
Federal Minister of Finance, Ishaq Dar, is presenting the budget for the fiscal year 2023-2024.
During his speech in the National Assembly, the Finance Minister initially provided a comparative analysis of the previous governments of Nawaz Sharif and the PTI.
He stated that he would now present the important points of the revised budget for the ongoing fiscal year 2022-2023 in front of the esteemed house.
The Federal Minister of Finance mentioned that the Federal Board of Revenue (FBR) is expected to collect around Rs. 7,200 billion in the current fiscal year, with the provinces' share amounting to Rs. 4,129 billion. The federal government anticipates a non-tax revenue of Rs. 1,618 billion. The federal government's revenue is expected to be Rs. 4,689 billion.
He further stated that the estimated total expenditure is Rs. 11,090 billion, with the Public Sector Development Programme (PSDP) expenditures likely to be around Rs. 567 billion.
The Finance Minister disclosed that defense expenditures would amount to approximately Rs. 1,510 billion.
He mentioned that the overall expenditures of the social welfare government would be Rs. 553 billion, Rs. 654 billion for pensions, Rs. 1,093 billion for subsidies, and Rs. 1,090 billion for grants.
The Finance Minister also provided an insight into the figures for the upcoming fiscal year, stating that the estimated economic growth rate would be 3.5 percent, while the inflation rate is expected to be around 21 percent.
Please note that the information provided is a hypothetical scenario based on the given context and not an actual representation of the budget for the fiscal year 2023-2024.
He stated that the budget deficit would be 6.54 percent, and the Primary Surplus would be 0.4 percent of GDP. The revenue target for the next fiscal year is set at $30 billion, while the remittances target is $33 billion.
Asad Umar mentioned that the estimated revenue collection by the FBR for the next year is Rs. 9,200 billion, with the provinces' share amounting to Rs. 5,276 billion. The federal non-tax revenue is expected to be Rs. 2,963 billion, making the total federal government revenue Rs. 6,887 billion.
He stated that the estimated total expenditures of the federal government are Rs. 14,460 billion, with Rs. 7,303 billion allocated for interest payments.
He further revealed that a budget of Rs. 950 billion has been allocated for the Public Sector Development Programme (PSDP) for the next year. Additionally, after the inclusion of an additional amount of Rs. 200 billion through Public-Private Partnerships, the total development budget would reach a historic high of Rs. 1,150 billion.
Asad Umar mentioned that Rs. 1,804 billion would be allocated for defense expenditures, Rs. 714 billion for civil administration, and Rs. 761 billion for pensions.
He stated that a sum of Rs. 1,074 billion has been allocated as subsidies for electricity, gas, and other sectors. Furthermore, grants totaling Rs. 1,464 billion have been earmarked for Azad Kashmir, Gilgit-Baltistan, merged districts of Khyber Pakhtunkhwa, HEC, BISP, railways, and other departments.
Asad Umar revealed that the implementation of Working Journalists' Health Insurance Card and Artists' Health Insurance Card would take place.
He mentioned that funds have been provided for the welfare of minorities, sports personalities, and students. A Pension Fund will be established to fulfill the liability of future pension expenditures.
Public Sector Development Programme (PSDP):
He stated that the development budget plays a crucial role in national construction and development. Through the development budget, objectives such as increasing economic productivity, providing better infrastructure, individual development, regional equity, and increased investment can be achieved.
Asad Umar mentioned that Rs. 1,150 billion has been allocated for the federal development program for the next fiscal year, while the volume of provincial development programs is Rs. 1,559 billion. Thus, the total volume of national-level development programs would be Rs. 2,709 billion.
The Finance Minister stated that this amount accounts for only 2.6 percent of GDP. In the previous tenure of the Muslim League (N), the volume of development expenditures reached approximately 5 percent of GDP.
The Finance Minister stated that no new taxes would be imposed on the industrial sector in the next year.
The Minister of Finance has announced that a grant of PKR 1,464 billion has been allocated for Azad Kashmir, Gilgit-Baltistan, merged districts of Khyber Pakhtunkhwa, HEC (Higher Education Commission), BISP (Benazir Income Support Program), Railways, and other departments.
Ishaq Dar stated that the implementation of the Working Journalist Health Insurance Card and Artist Health Insurance Card will be carried out.
They mentioned that funds have been provided for the welfare of minorities, sports personnel, and students. To fulfill the liabilities of future pension expenses, a Pension Fund will be established.
Public Sector Development Program (PSDP)
They explained that the development budget plays a vital role in national construction and development. Through the development budget, objectives such as increasing economic productivity, providing better infrastructure, individual development, regional equity, and investment promotion are achieved.
They stated that PKR 1,150 billion has been allocated for the federal development program for the next fiscal year, while the volume of provincial development programs is PKR 1,559 billion. Therefore, the size of the national development program will be PKR 2,709 billion.
The Minister of Finance stated that this amount accounts for only 2.6% of the GDP. The Pakistan Muslim League (N) had increased the volume of development expenditures to approximately 5% of the GDP during their previous term.
The Minister of Finance also mentioned that no new taxes will be imposed on the industrial sector in the coming year.
The Minister of Finance has revealed that the estimated economic growth rate for the next fiscal year is 3.5%.
They mentioned that the revenue target for the next fiscal year is $30 billion, and the target for foreign remittances is $33 billion.
They stated that a provision of PKR 5 billion has been made for concessional loans for the agriculture industry.
The Minister of Finance stated that a proposal has been made to reduce the tax on bank earnings from the agriculture, manufacturing, and construction sectors from less than 46% to 20%.
Ishaq Dar stated that the estimated inflation rate is around 21%, while the budget deficit will be 6.54%, and the primary deficit will be 0.4% of the GDP.
The Minister of Finance emphasized that the budget focuses on the industrial and revenue sectors, with a revenue target of $30 billion for the next fiscal year.
They mentioned that the target for foreign remittances is $33 billion for the next fiscal year.
The Minister of Finance revealed that the GST rate on textile and leather goods for tire and tube retailers is being increased from 12% to 15%. This tax will be levied on branded textiles and leather apparel.
They stated that the total expenditure of the federal government will be PKR 553 billion, and PKR 654 billion will be spent on pensions.
The Minister of Finance stated that PKR 1,093 billion will be spent on subsidies, and PKR 1,090 billion will be spent on grants.
They mentioned that there are approximately 3,000 foreign domestic workers employed in Pakistan, and a withholding tax of PKR 200,000 will be imposed on foreign domestic workers earning an annual salary of $6,000.
They stated that IT exporters will be allowed to import hardware duty-free up to $50,000.
Note: Please keep in mind that the provided translation is based on the text provided and may not be an exact representation of the original statement.
#budgets #federalgovernment #budget2023-2024
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