• Sunday, September 15, 2019

Fiscal Budget 2019-20

Discussion in 'Pakistan Economy' started by VCheng, May 21, 2019.

  1. shahbaz baig

    shahbaz baig SENIOR MEMBER

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    To reduce circular debt, the amount from budget for energy distribution and to increase transmissions lines accordingly to generating capacity is really good step.

    This will help our industry & total production cost can be regionally competitive in future.
     
  2. raja fawad

    raja fawad FULL MEMBER

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    Agreed to most part of your post. But what is in there for a filer who pays taxes and has been doing this since long. I am a filer since 21 years and in service since the same. Taxes are deducted at source. what do i get(in daily life) for paying my taxes regularly that a non payer or a non filer won't get. even they can by property (invest money to earn more profit?), cars etc. This is the routine of every previous govt. so no change there. I am willing and ready to pay even hiked taxes but differentiate me from the non payers.

    I have a case for you, there is a famous road in Multan Named as Bosan road ( one of the business hubs) a single marla shop can cost any thing from a crore to two depending upon location. Business activity is high there, rentals for same are around 40K min. Still u won't find a vacant one easily as earning s are high due to business activity. A non filer over there has an asset value multiple times higher than me (in fact lot of job oriented people cannot buy a property there in their whole life), earns big and then evades taxes (direct), pays indirect taxes just as me and remains un affected in the budget while I get the beating.
     
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  3. Samlee

    Samlee SENIOR MEMBER

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    The Reforms Regarding Real Estate and Debt Instruments Are Truly Revolutionary If Implemented This Can Transfer Trillions Of Rupees To More Productive Sectors.I Suggest People Watch Kamran Khan On This
     
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  4. Peaceful Civilian

    Peaceful Civilian ELITE MEMBER

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    Ministers salary is decreased 10 %.:omghaha:
    I say good start from home. While 10% increase in employees salary is more than enough in this difficult situation. It was unexpected they increase in salary & pension but still they increased it.
     
  5. ghazi52

    ghazi52 ELITE MEMBER

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    The income tax exemptions announced last year, which had generously excluded everyone with a salary of less than Rs1.2 million a year (Rs100,000 a month) from paying income taxes, have been scrapped.

    Observing that the exemption had been “unprecedented and distortionary” — an election year windfall — the government has proposed reinstating taxes on everyone making a salary of more than Rs600,000 a year (or Rs50,000 a month). The limit for non-salaried individuals has been revised to Rs400,000.

    It has also increased tax rates for both salaried and non-salaried persons.

    Salaried persons
    In the case of salaried individuals, the government has introduced 11 tax slabs with a progressive taxation rate ranging from 5pc to 35pc of income.

    It is as follows:

    1. Where taxable income does not exceed Rs600,000, individuals will pay zero tax.
    2. Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000, individuals will pay 5pc of the amount exceeding Rs600,000.
    3. Where taxable income exceeds Rs1,200,000 but does not exceed Rs1,800,000, individuals will pay Rss30,000 plus 10pc of the amount exceeding Rs1,200,000.
    4. Where taxable income exceeds Rs1,800,000 but does not exceed Rs2,500,000, individuals will pay Rs90,000 plus 15pc of the amount exceeding Rs1,800,000.
    5. Where taxable income exceeds Rs2,500,000 but does not exceed Rs3,500,000, individuals will pay Rs195,000 plus 17.5pc of the amount exceeding Rs2,500,000.
    6. Where taxable income exceeds Rs3,500,000 but does not exceed Rs5,000,000, individuals will pay Rs370,000 plus 20pc of the amount exceeding Rs3,500,000.
    7. Where taxable income exceeds Rs5,000,000 but does not exceed Rs8,000,000, individuals will pay Rs670,000 plus 22.5pc of the amount exceeding Rs5,000,000.
    8. Where taxable income exceeds Rs8,000,000 but does not exceed Rs12,000,000, individuals will pay Rs1,345,000 plus 25pc of the amount exceeding Rs8,000,000.
    9. Where taxable income exceeds Rs12,000,000 but does not exceed Rs30,000,000, individuals will pay Rs2,345,000 plus 27.5pc of the amount exceeding Rs12,000,000.
    10. Where taxable income exceeds Rs30,000,000 but does not exceed Rs50,000,000, individuals will pay Rs7,295,000 plus 30pc of the amount exceeding Rs30,000,000.
    11. Where taxable income exceeds Rs50,000,000 but does not exceed Rs75,000,000, individuals will pay Rs13,295,000 plus 32.5pc of the amount exceeding Rs50,000,000.
    12. Where taxable income exceeds Rs75,000,000, individuals will pay Rs21,420,000 plus 35pc of the amount exceeding Rs75,000,000.
    Non-salaried persons
    For non-salaried persons deriving income exceeding Rs400,000, eight taxable slabs of income with tax rates ranging from 5pc to 35pc are being introduced in the following manner:

    1. Where taxable income does not exceed Rs400,000, individuals will pay 0pc.
    2. Where taxable income exceeds Rs400,000 but does not exceed Rs600,000, individuals will pay 5pc of the amount exceeding Rs600,000.
    3. Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000, individuals will pay Rs10,000 plus 10pc of the amount exceeding Rs600,000.
    4. Where taxable income exceeds Rs1,200,000 but does not exceed Rs2,400,000, individuals will pay Rs70,000 plus 15pc of the amount exceeding Rs1,200,000.
    5. Where taxable income exceeds Rs2,400,000 but does not exceed Rs3,000,000, individuals will pay Rs250,000 plus 20pc of amount exceeding 2,400,000.
    6. Where taxable income exceeds Rs3,000,000 but does not exceed Rs4,000,000, individuals will pay Rs370,000 plus 25pc of the amount exceeding Rs3,000,000.
    7. Where taxable income exceeds Rs4,000,000 but does not exceed Rs6,000,000, individuals will pay Rs620,000 plus 30pc of the amount exceeding Rs4,000,000
    8. Where taxable income exceeds Rs6,000,000, individuals will pay Rs1,220,000 plus 35pc of the amount exceeding Rs6,000,000.
    No more exemptions on ‘gifts’
    The government has also wised up to the practice of people avoiding taxation and hiding undisclosed sources of income by declaring assets as ‘gifts’.

    According to the new policy, all ‘gifts’ will now be considered ‘income from other sources’. The only exceptions that will be made will be for ‘genuine gift transactions’, i.e. on transactions between close family members and so on.

    “Consequently any amount in cash or fair market value of any property including immovable property would be treated as gift,” the government says.

    What happens if I do not file my tax returns?
    The government has also acted on a longstanding complaint from the returns filing, upstanding members of the citizenry: what happens to those who continue to not file tax returns?

    For starters, the government has made filing returns even for non-filers easier. It has done away with the rule that if you do not file your returns by the deadline, you will not be placed on the Active Taxpayers List (ATL). This may seem counter-intuitive, but the government says it will a) refuse any refund to late filers for the tax year in which returns were filed late, and b) impose a nominal tax for placement on ATL after the due date.

    The tax rates for b) are:

    Company: Rs20,000

    Association of persons: Rs10,000

    Non-salaried individuals: Rs3,000

    Salaried individuals: Rs1,000

    If these do not seem sufficient, consider the penalties for not following returns at all: the government has made it clear that those persons who do not appear on the ATL will be subjected to 100pc increased rate of tax.

    It has also required all withholding agents — the entities authorised to deduct withholding taxes — to “clearly specify the names, CNIC or any other identification of such persons in the withholding statement so that legal provisions to enforce return can come into effect”.

    If this penalty — 100pc increased tax — has been imposed on a person, and that person still fails to file their tax returns for the year in which that tax was deducted, the Income Tax Commissioner “shall make a provisional assessment within sixty days of the due date for filing of return by imputing income so that tax on imputed income is equal to the hundred percent increased tax deducted or collected from such person and the imputed income shall be treated as concealed income”.

    If the person files their returns within 45 days of this provisional assessment, they will still get some relief. If not, the commissioner will initiate penalty proceedings against the person for the crime of concealing their income.

    Speaking of returns, what happens to refunds?
    The government acknowledges that taxpayer refunds caught up in the system have resulted in a liquidity crunch for businesses. However, it also states that releasing all the refunds would impact revenue generation and is hence untenable.

    To counter this problem, it is offering promissory notes to taxpayers through a newly-formed company called the FBR Refund Settlement Company Limited.

    “The bonds are to have a maturity period of three years, after which the company shall return the promissory note to the Board and the Board shall make payment of amount due under bonds along with profit due to the bond holders,” the government promises.

    Other measures
    The government is also closing in on foreign remittances that are used as a source of investment. Where previously you could invest up to Rs10 million without being asked the source of funds, now you will need to show a money trail for any investment through foreign remittance of more than Rs5 million.

    Promisingly, the government has also incentivised companies to hire fresh graduates, promising them tax credits if they do so.

    “Persons employing fresh qualified graduates, having graduated after July 1, 2017 from universities or institutions recognized by the Higher Education Commission would be given a tax credit equal to the amount of annual salary paid to such graduates. The tax credit shall be deducted from the tax payable by such persons and would be in addition to the expenditure claimed by businesses on payment of salary to their employees,” the government promises.
     
  6. Kabira

    Kabira ELITE MEMBER

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    Sambrial-Kharian motorway approved :yahoo:
     
  7. Shahzaz ud din

    Shahzaz ud din SENIOR MEMBER

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    Budget 2019-20 Announced: Higher Salaries, Tax Adjustments & Fewer Subsidies
    Budget 2019-20 Announced: Higher Salaries, Tax Adjustments & Fewer Subsidies

    The highly anticipated annual budget for the fiscal year 2019-20 is finally here. It is being announced at the time of writing. Some of the salient features and highlights revealed so far are mentioned below:
    • Sales tax of 17% restored for five export-oriented sectors.
    • Minimum monthly salary set at PKR 17,500.
    • GST maintained at 17%.
    • 3% VAT reduction on mobile phone imports.
    • Tax on immovable property decreased from 2% to 1%.
    • Non-Filers can now purchase property.
    • PKR 200 billion subsidy on electricity for consumers that use less than 300 units of electricity per month.
    • 10% decrease in salaries of Cabinet.
    • 5% duty imposed on LNG.
    • 10% tax will be imposed on milk, cream, and flavored milk items.
    • Corporate tax rate fixed at 29% for the next two years.
    • 2.5% excise duty imposed on 1000cc cars and above.
    • Food items supplied to bakeries and restaurants will be taxed at 4.5%
    • Depreciation and brought forward losses excluded for calculation of super tax of banking, insurance, oil, and mineral exploration companies.
    • Sales tax on sugar increased from 8% to 17%.
    • 3% duty waived on 19 basic medical products.
    • FED on Cigarettes increased to PKR 5,200/1000 sticks for the upper slab and to PKR 1,650/1000 sticks for the lower slab.
    • Tax on cold drinks increased from 11.25% to 14%.
    • 17% federal excise duty imposed on branded cooking oil.
    IT & Telecom Division
    The government has allocated Rs 7.341 billion for 29 ongoing and new development schemes of Information Technology and Telecom Division in the Public Sector Development Programme (PSDP) for the fiscal year 2019-20.


    According to the annual PSDP, the government has allocated Rs 1.466 billion for the 10 ongoing and Rs 5.864 billion for 19 new development schemes.
    According to the document, for ongoing schemes a sum of Rs 600 million for the expansion, upgradation of NGMS (3G/4G) services and seamless coverage along KKG, Rs 474 million for replacement of GSM network of AJK, and Rs 100 for establishing technology parks development project (TDP) at Islamabad, respectively, have been earmarked.
    Finance Division
    The federal government has allocated Rs 36.821 billion for 42 projects of Finance Division under the Public Sector Development Program (PSDP) for the upcoming fiscal year 2019-20.
    According to the budgetary document, Rs 7.938 billion have been allocated for 23 ongoing development projects, Rs 3.609 billion for 14 new schemes and Rs 25.273 billion for 5 ongoing development projects located in merged districts of Khyber Pakhtunkhwa.
    Among the ongoing schemes, the government allocated Rs 1 billion for the construction of Sibbi Rakhni Road via Maiwand (Tall-Kohlu) section Sibbi, whereas Rs 1 billion have been earmarked for Necessary Facilities of Fresh Water Treatment, Water Supply, and Distribution project Gwadar.
    Higher Education
    An amount of Rs. 29047 million has been earmarked under the Public Sector Development Programme (PSDP) for the ongoing and new schemes of the Higher Education Commission (HEC) during the fiscal year 2019-20.
    Around Rs. 24887 million has been allocated for ongoing schemes, while, Rs. 4160 million has been allocated for new schemes.
    Climate Change Ministry
    The federal government has allocated an amount of Rs 7.579 billion for various new and ongoing schemes under the Climate Change Division under the Public Sector Development Programme (PSDP) 2019-20.
    According to PSDP 2019-20, the government has allocated an amount of Rs. 7.515 billion for the new schemes and Rs. 64.200 million for the ongoing schemes of the Climate Change Division.
    Among new schemes, the government has allocated Rs. 15 million allocated for the establishment of the Climate Change Reporting Unit in the Ministry of Climate Change and an amount of Rs. 7.5 billion for Ten Billion Tsunami Programme Phase-1 up-scaling of Green Pakistan Programme (Revised).
    In ongoing schemes, the government has allocated an amount of Rs 20.000 million for Climate Resilient Urban Human Settlements Unit, 3.200 million for establishment of Geomatic Centre for Climate Change, Rs16.000 million for the establishment of Pakistan WASH Strategic Planning and Coordination Cell and Rs25 million allocated for the sustainable land management project to combat desertification of Pakistan SLMP-II.
    Narcotics Division
    The federal government has allocated Rs 135.24 million for three ongoing and new projects each for Narcotics Control Division for the fiscal year 2019-20.
    According to the upcoming Public Sector Development Programme (PSDP), the government has earmarked Rs 76.71 million and Rs 58.52 million for new and ongoing schemes, respectively.
    Under new schemes, the government has specified Rs 50 million for the establishment of a Model Addiction Treatment & Rehabilitation Center in the country.
    Power Division
    Rs. 74,236.350 million for various ongoing and new power projects has been allocated under the Public Sector Development Programme (PSDP) for the next fiscal year 2019-20.
    According to the budget documents, Rs. 68,143.947 million has been earmarked for the ongoing year while Rs. 6,092 million has been allocated for 17 new schemes in the PSDP 2019-20.
    Other than that, the government has earmarked a sum of Rs. 120,768.352 million for various ongoing and new hydel projects under the Public Sector Development Programme (PSDP) for the next fiscal year 2019-20.
    An amount of Rs.120,071.352 million has been allocated for ongoing 12 hydel projects while Rs. 697 million has been set aside for five new schemes in the PSDP 2019-20.
    Commerce and Textile
    Rs. 100 million for one new scheme of the Ministry of Commerce has been allocated and Rs. 202.828 million has been earmarked for Textiles Industry Division in one ongoing and two new schemes in the Public Sector Development Programme (PSDP) 2019-20 for the promotion of trade and commerce in the country.
    Going into the details, the government has allocated Rs. 100 million for remodeling and expansion of Karachi Expo Centre, Component-1 to develop and promote the local industry and to attract the foreign and local investment in the country.
    Housing Projects
    An amount of 2,843.094 million has been allocated for 43 ongoing projects of Housing and Work Division for the fiscal year 2019-20 under the Public Sector Development Programme (PSDP).
    The financial allocation includes Rs. 300.000 million for dualization and improvement of Mandra Chakwal Road (64 KM).
    Industries and Production
    The government has allocated Rs. 2,343.293 million for different development projects of the Ministry of Industries and Production.
    In PSDP 2019-20, the government intends to spend an amount of Rs. 971.330 million on the national strategic program for acquisition of industrial technology including feasibility (knowledge economy initiatives).
    Defense Division
    The government has set aside Rs. 456 million for different ongoing and new development schemes of Defence Division under the Public Sector Development Programme (PSDP) 2019-20.
    According to the data released by the Ministry of Planning, Development, and Reform, the government has released Rs 410.367 million for four ongoing schemes, including Rs. 208.235 million for Procurement of 03 Nos. Latest Printing Machines for modernization of Survey of Pakistan.
    While Rs. 80.632 million have been allocated for Construction of Office Complex including Boundary Wall for Survey of Pakistan Lahore, Rs. 61 million for Procurement/Construction of 6 Maritime Patrol Vessels MPVs for PMSA and Rs. 60.500 million for Establishment of FG Degree College for Boys at Kohat.
    In addition, Rs. 1,700 million has been allocated for the two ongoing schemes of Defense Production Division under the Public Sector Development Programme (PSDP) 2019-20.
    National Food Security
    The government has allocated an amount of Rs 12,047.516 million for various development projects of the Ministry of National Food Security and Research in Public Sector Development Program (PSDP) 2019-20.
    It would be used for 16 ongoing and 24 new developmental schemes under PSDP 2019-20 for the uplift of agriculture and livestock sectors in the country.
    Rs. 1,393 million will be spent on the completion of 16 ongoing developmental projects, whereas Rs. 10,653.988 million will be spent on 24 new developments schemes during the current fiscal year.
    Petroleum Division
    The government has allocated Rs 581.812 million for six ongoing and new schemes of the Petroleum Ministry to achieve self-sufficiency in the energy sector.
    According to the PSDP, an amount of Rs 433.852 million has been earmarked for four ongoing schemes, out of which Rs 416.535 would be spent to acquire four drilling rigs with accessories for the Geological Survey of Pakistan, Rs 3.655 million for appraisal of newly discovered coal resources of Badin Coal Field and its adjoining areas of Southern Sindh, Rs 10.553 million to explore and evaluate coal in Nosham and Bahlol areas of Balochistan, and Rs 3.109 million for exploration and evaluation of metallic minerals in Uthal and Bela areas of district Lasbela.
    Aviation Division
    Under the new budget, the government has set aside Rs 1,266.505 million in the Public Sector Development Programme (PSDP 2019-20) for 16 ongoing and new development schemes of the Aviation Division.
    According to the PSDP document, an amount of Rs 1028.532 million has been earmarked for seven ongoing projects of the Division, out of which Rs 100 million would be spent for construction of Airport Security Force Camp (ASF) at Islamabad International Airport, Rs 100 million for construction of Rain Harvesting Kasana Dam, Rs 23.532 million for establishment of Specialized Medium-Range Weather Forecasting system in the country, Rs 160 million for installation of Weather Surveillance Radar at Karachi, Rs 50 million for installation of Weather Surveillance Radar at Multan, Rs 555 million for new Gwadar International Airport (NGIA) project and Rs 40 million for Reverse Linkage project between Pakistan Meteorological Department and Mamara Research Centre of Turkey.
    This is a developing story and will be updated as more information becomes available…
     
  8. Fracker

    Fracker SENIOR MEMBER

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    Looks like more beatup on the way for common people.

    7 trillion budget (10% growth) with no state bank loans is very positive sign to start with. But the difference between budget and income has to be coming from somewhere. I am assuming they will be confiscating lots of properties bank account of common people. Of course Pakistan don't even have law to began with, so best of luck Pakistanis for next year.

    Same time there are many headers without proper ministry to allocate not sure where that money will go (into corruption?). Taxes increases ridiculously, I said so many times it's I guess useless to even talk on this.

    No budget for new technology development, no budget to help industry grow, no insentives. Irony PTI talked about so much "Katta" "choozay" but nothing for SMEs. I guess talks are easy as compared to practical.

    Ps: many lies was mentioned in budget speech. I know how this Facebook based government works so can't complain.
     
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  9. Yaseen1

    Yaseen1 SENIOR MEMBER

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    this budget has little value as there is high chance govt will present multiple mini budgets in current fiscal year due to failure of meeting budget target announced
     
  10. I.R.A

    I.R.A BANNED

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    Yep the people from that area can again come with trunk full of hard cash and buy property easily in heart of federal capital ....... and they as usual won't be paying a single penny to rebuild their own region. Bravo.

    Promise all you wish ........ but this is another area which will be exploited equally by the businesses (employers) and Commissioner babuz ........ meaning more litigation, more messed up situation. Unless you have mechanism to ensure transparency of this whole hiring recruiting and salaries offered.

    Billions for Zartaj Gul (who by the way tried getting her sister hired in a very dubious manner) and millions for HEC (education) ......... sadqay jaon tharakpan kay.
     
  11. Baby Leone

    Baby Leone SENIOR MEMBER

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    ISLAMABAD: Contrary to the government’s tall claims of austerity, the budget for the next fiscal year has proposed an 18.8 percent increase in the non-development funds of the Prime Minister’s Office.

    The government has allocated Rs1.171 billion for the PM Office in the year 2019-20 against the outgoing year’s revised estimate of Rs980 million.

    According to a break-up of the allocation, a sum of Rs879 million has been reserved for employees’ expenses, Rs384 million for salaries, Rs207 million for payment to officers, Rs176 million for other staff members, Rs494 million for allowances, Rs400 million for regular allowances, Rs94 million for other allowances excluding transport allowance, 218 million for operating expenses and Rs26 million for employees’ retirement benefits.




    A sum of Rs18 million has been allocated for grants, subsidies and write off loans, Rs1.5 million for transfers, Rs5.4 million for physical assets and Rs21 million for repair and maintenance.

    Separately, the government has allocated Rs2.095 billion non-development funds for the Supreme Court against the outgoing fiscal year’s revised estimate of Rs 1.964 billion.

    According to its break-up, a sum of Rs1.655 billion has been allocated for employees’ expenses, Rs451.734 million for salaries, Rs311.567 million for payment to officers, Rs140.167 million for other staff members, Rs1203.426 million for allowances, Rs930.322 million for regular allowances, Rs272.104 million for other allowances excluding transport allowance, Rs288.270 million for operating expenses, Rs49 million for employees’ retirement benefits, Rs1 million for transfers, Rs44.020 million for physical assets and Rs31.050 million for repair and maintenance.

    https://tribune.com.pk/story/1990508/2-budget-2019-20-proposes-18-8-hike-pm-office-funds/

    *Mod edited: ALWAYS provide source!
     
    Last edited by a moderator: Jun 12, 2019
  12. Tejas Spokesman

    Tejas Spokesman BANNED

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    Budget 2020: Govt predicts 2.4pc growth, Rs7 trillion in expenditures

    Net revenue forecast to reach Rs3.5 trillion; fiscal deficit to rise to 7.2pc of GDP.

    Hufsa Chaudhry Updated about 3 hours ago

    The Pakistan Tehreek-i-Insaf (PTI) government unveiled its first annual budget for fiscal year 2019-20 on Tuesday.
    The budget projects the economy will grow at a rate of 2.4 per cent ─ a massive decline from last year's projected growth rate of 6.2pc ─ and its revised growth rate of 3.3pc.

    The last time Pakistan saw a GDP growth rate resembling this figure was amid a global financial crisis during the PPP era in FY2009-10, when the revised growth rate came to 2.6pc.

    Inflation is estimated to remain between 11-13pc this fiscal. Pakistan last saw inflation touching 11.5pc in FY2011-12.



    • Projected expenditures
      The size of the budget (total expenditure) has been estimated at Rs7,036.3 billion. The total outlay has been estimated at Rs 8,238.1bn.



      Overall, current expenditure has increased substantially this year, while development expenditure has fallen. Current expenditure is estimated at Rs6,192.9bn in FY20 compared to last year's estimate of Rs4,780bn ─ an increase of 75pc.

      Over half this amount (Rs4.04 trillion) is dedicated to interest payments on past domestic and foreign debts and defence.

      Read more: Take-home salary to take a hit thanks to new income tax brackets

      Interest payments on domestic debt are projected to increase by Rs1.14tr in FY20, while interest payments on foreign debt are expected to increase by Rs130bn.

      Interestingly, the defence budget did not see a cut this year as expected. In fact, it rose by Rs52bn from last year's budgeted amount of Rs1,100bn to Rs1,152.54bn.

      Other expenditures, which include pensions and running of the civil government, amount to Rs2,149bn.



      Within current expenditures, budgeted foreign loan payments in FY20 saw an increase of nearly Rs494bn compared to last fiscal.

      Total development expenditure this year is expected to amount to Rs949.89bn ─ a drop of 17.5pc compared to last year's budget.

      Of this amount, Rs701bn has been allocated to the federal Public Sector Development Programme (PSDP), while Rs912 has been allocated to the provincial PSDP.

      Non-PSDP development expenditure, which includes expenditure heads such as Benazir Income Support Programme and Kamyab Jawan Programme, is estimated at Rs85.8 million.



      With its finances stretched, the government has had to make difficult decisions about where to allocate development funds. Allocations this year reflect the leadership's focus on social welfare projects.

      Although a special provision for CPEC projects has been eliminated from the PSDP this year, projects like Kamyab Jawan and low-cost housing ─ announced by Prime Minister Imran Khan last year ─ have been allocated Rs450m and Rs5m this year.

      The Clean Green Pakistan Movement/Tourism head under federal PSDP, which is new this year, has been allocated Rs2bn.

      Sustainable Development Goals have been allocated Rs24m against last year's Rs5m.

      However, the budget for the Benazir Income Support Programme was reduced to zero this year. It is possible the allocation has been shifted elsewhere as per the government's priorities under the wide-ranging Ehsas programme. Dr Sania Nishtar, the chairperson of BISP is also the architect of Ehsas.

      The new Poverty Alleviation and Social Safety Division, which was set up to combat poverty under Ehsas in April 2019, has been allocated Rs200m.

      Rs2bn ─ compared to last year's Rs150m ─ has been allocated to a public financial management and accountability programme to support services delivery.

      A 10-year plan for the development of the tribal areas has been allocated Rs48bn in FY20 compared to Rs10bn last year. Additionally, Rs8.3bn has been set as a provision for elections this year ─ ostensibly for the upcoming polls for tribal areas in the KP Assembly.

      Where is the money coming from?
      The government estimates net revenue will reach Rs3,462.1bn in FY20 ─ an increase of 11pc from last year's budgeted net revenue.



      The fiscal deficit, or the shortfall between the government's revenues and its expenditures, amounts to Rs3,151.2bn or 7.2pc of GDP.



      Total tax revenue has been budgeted at Rs5,822bn. The bulk of the revenue will be drawn from FBR taxes, which are projected to reach Rs5,555bn in the coming fiscal.



      The government expects income tax revenue amounting to Rs2,073bn in FY20 compared to last year's revised income tax revenue of Rs1,651bn.

      Explore: Direct taxes in Budget 19-20: Expect a smaller pay cheque starting July

      Indirect tax revenue projections have increased by Rs773bn.
     
  13. Tejas Spokesman

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  14. kris

    kris FULL MEMBER

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    It's believed that reducing military expenses is important point of austerity measure for the imf deal

    What happens to it now as pakistan refused to do so??
     
  15. Arsalan

    Arsalan MODERATOR

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    Agreed. But the problem is the way the gov. wants to end this blanket tax relief. The industry/exporters claim that if the refund payments are not made for years. If gov. wants to implement this proposed system them need to make sure refunds are paid at time of presentation of documents, even that means an investment being blocked for around 3 months (which is huge). If the refund delays mean the investment is blocked for 5-6 months (and this is the best case scenario) you can understand how the industry will suffer.

    There will be some agitation but it wont be as wide spread as what we saw in PMLN time. This is what i feel!