Budget for FY-2010-11 to be presented today

[Tomahawk]

Some features of the Federal Budget 2010-11:

Rs663bn allocated in PSDP-2010-11

 

[Tomahawk]

Total increase in Defense Budget is 17% from previous year.
Defense Budget will constitute 13.56% of total budget.

 

[Neither Right Nor Wrong]

My notes from the Live Budget Speech:-



Total Outlay : 3,259 Bn Rupees
Budget Deficit: 4% of the GDP -- thankfully a realistic number
Collections:- 1,667 Bn Rupees (9.8% of GDP)
To be transferred to provinces :- 1,033 Bn as opposed to 655 Bn last [/B]

I think the deficit figure is rather unrealistic.

Total budget is 3259 Bn- $38.3Billion at 1$=85 Rs
Revenue- 1667B= $19.6Billion
Difference- $ 18.6 Billion

Now pak Gdp for 2009-10 -$176 Billion
it is expected to grow by 4.5% hence GDP 2010-11 will be $184 Billion

if Budget defecit is expected to be 4% of GDP = $ 7.36 billion

Then how is Pak manging the difference $ 18.6 Billion - $ 7.36 Billion= $11.24 billion

 

[xenia]

Budget 2010 – 2011 Sailent features
June 5, 2010 –

ISLAMABAD: Following are the highlights of Public Sector Development Programme (PSDP) 2010-11, released here on Saturday:

Total amount of Rs. 663 billion has been allocated in PSDP-2010-11 for various ongoing and new schemes.

Out of total PSDP, the federal share is Rs. 280 billion, provincial share Rs.373 billion where as Rs.10 billion would be spent for Reconstruction and Rehabilitation of Earthquake-hit areas.
Total budget outlay 3259 billion, which is 10.7 percent more than current year.

Total available resources Rs 2.574 trillion.

GST raised from 16 to 17 percent.

Salaries of government employees raised by 50 percent.

Federal Cabinet cut down its salaries by 10 percent.

Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.

Rs 1 CED imposed on manufacturing of each cigarette.

The debt to GDP ratio has climbed to 55 percent and ‘we must protect the poor’.

30 million energy savors will be provided in a bid to conserve electricity.

He stressed upon self-reliance and resource mobilization.

Talking about unemployment, he said jobs are created when the whole economy grows.

He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.

“We have to make our policies right and rise above the petty issues,” he stressed.

He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.

Three dams will be built in 2010-11.

Pepco want subsidy of Rs 180 billion.

685 billion budget deficit, which is 4 percent of GDP.

VAT to be implemented from October 31.

All non-developmental expenditures frozen.

40 billion to be distributed among people from Benazir Income Support Programme.

Baitul Maal to continue functioning with Rs2 million.

Minimum wage raised from Rs6000 to Rs7000.

ADP fixed at 603 billion out of which 52 percent will be given to the provinces.

Rs. 663bn allocated in PSDP-2010-11



Budget 2010 – 2011 Sailent features | Pakistan Travel & Culture

 

[reeyan]

ISLAMABAD: Finance Advisor Dr. Abdul Hafeez Shaikh presented Federal Budget for 2010-11 with a total outlay of Rs3.259 trillion with 685 billion deficit before the parliament on Saturday.

In his budget speech at special budget session of the National Assembly, Dr. Hafeez Shaikh announced ad hoc allowance at 50 percent of basic salaries for government employees; raise in GST from 16 to 17 percent; 10 percent cut in Federal Cabinet salaries; capital gains tax of 10 percent on stocks held for six months or less, 7.5 percent on stocks held between 6 months to a year; reduction in customs duty on 29 items; raise in pension by 15 percent for employees retired before 2001 and 20 percent for those retired after 2001.

He said the budget deficit will be around 685 billion, which is 4 percent of GDP.

Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP.

Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Inflation is targeted at 9.5 percent in 2010/11 fiscal year, down from the central bank's forecast of between 11.5percent and 12.5 percent for the year ending June 30.

The defence budget is set at 442.2 billion rupees, a 17percent increase from last year.

The general sales tax will be reformed to a uniform rate of 15 percent. GST will not be imposed on health, education, food items and on those merchants whose turnover is less 7.5million rupees.

This reform will be effective from October 1, 2010.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.


Dr. Shaikh said Rs 1 CED will be imposed on manufacturing of each cigarette while 30 million energy savors will be provided in a bid to conserve electricity.

He stressed upon self-reliance and resource mobilization.

Talking about unemployment, he said jobs are created when the whole economy grows.

He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.

We have to make our policies right and rise above the petty issues.

He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.

He said three dams will be built in 2010-11.

He said PEPCO wants subsidy of Rs 180 billion.

All non-developmental federal expenditures will be frozen while 40 billion will be distributed among the poor under Benazir Income Support Programme.

Baitul Maal to continue functioning with Rs2 million.

ADP is being fixed at 603 billion out of which 52 percent will be given to the provinces.

Minimum taxable income for salaried class being raised from Rs200,000 to Rs300,000.

Capital Gains Tax of 10 percent being imposed on gains from stocks held for less than 6 months; 7.5 percent on gains from stocks held for 6 months to 1 year and; no tax on capital gains from stocks held for more than a year.

Pension raised by 15 percent for the employees who retired before 2001 and 20 percent for those retired after 2001.

200,000 unemployed youth will be provided employment for 100 days under Youth Scheme

 

[abbasniazi]

Some Corrections...

I think the deficit figure is rather unrealistic.

Total budget is 3259 Bn- $38.3Billion at 1$=85 Rs
Revenue- 1667B= $19.6Billion
Difference- $ 18.6 Billion

Now pak Gdp for 2009-10 -$176 Billion
it is expected to grow by 4.5% hence GDP 2010-11 will be $184 Billion

if Budget defecit is expected to be 4% of GDP = $ 7.36 billion

Then how is Pak manging the difference $ 18.6 Billion - $ 7.36 Billion= $11.24 billion

Brother, Rs.3259 includes provincial figures also, plus the difference is suppposed to be met out of foreign remittances which are 8.5 billion dollars this year and will surely increase next year, plus the foreign aid KLB and WOT amount to be received from US, this will also add to the available resources, Rs.1667 B will be the expected amount to be collected by FBR. its just a rough idea coz i haven't studied the budget as yet.

Budget 2010 – 2011 Sailent features
June 5, 2010 –

ISLAMABAD: Following are the highlights of Public Sector Development Programme (PSDP) 2010-11, released here on Saturday:

Total amount of Rs. 663 billion has been allocated in PSDP-2010-11 for various ongoing and new schemes.

Out of total PSDP, the federal share is Rs. 280 billion, provincial share Rs.373 billion where as Rs.10 billion would be spent for Reconstruction and Rehabilitation of Earthquake-hit areas.
Total budget outlay 3259 billion, which is 10.7 percent more than current year.

Total available resources Rs 2.574 trillion.

GST raised from 16 to 17 percent.

Salaries of government employees raised by 50 percent.

Federal Cabinet cut down its salaries by 10 percent.

Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.

Rs 1 CED imposed on manufacturing of each cigarette.

The debt to GDP ratio has climbed to 55 percent and ‘we must protect the poor’.

30 million energy savors will be provided in a bid to conserve electricity.

He stressed upon self-reliance and resource mobilization.

Talking about unemployment, he said jobs are created when the whole economy grows.

He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.

“We have to make our policies right and rise above the petty issues,” he stressed.

He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.

Three dams will be built in 2010-11.

Pepco want subsidy of Rs 180 billion.

685 billion budget deficit, which is 4 percent of GDP.

VAT to be implemented from October 31.

All non-developmental expenditures frozen.

40 billion to be distributed among people from Benazir Income Support Programme.

Baitul Maal to continue functioning with Rs2 million.

Minimum wage raised from Rs6000 to Rs7000.

ADP fixed at 603 billion out of which 52 percent will be given to the provinces.

Rs. 663bn allocated in PSDP-2010-11



Budget 2010 – 2011 Sailent features | Pakistan Travel & Culture

50% of basic pay is increased as ADHOC RELIEF ALLOWANCE and its not like their total salaries have been increased or this this increase has been made in their basic salaries otherwise it would have a greater impact on the gross salaries.

VAT to be implemented from October 01 not October 31.

Rs.50 Billion is expected to be distributed not 40 Billion.

Rs. 2 Billion is to be given to Bait-ul-Mal not 2 Million.

ISLAMABAD: Finance Advisor Dr. Abdul Hafeez Shaikh presented Federal Budget for 2010-11 with a total outlay of Rs3.259 trillion with 685 billion deficit before the parliament on Saturday.

In his budget speech at special budget session of the National Assembly, Dr. Hafeez Shaikh announced ad hoc allowance at 50 percent of basic salaries for government employees; raise in GST from 16 to 17 percent; 10 percent cut in Federal Cabinet salaries; capital gains tax of 10 percent on stocks held for six months or less, 7.5 percent on stocks held between 6 months to a year; reduction in customs duty on 29 items; raise in pension by 15 percent for employees retired before 2001 and 20 percent for those retired after 2001.

He said the budget deficit will be around 685 billion, which is 4 percent of GDP.

Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP.

Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Inflation is targeted at 9.5 percent in 2010/11 fiscal year, down from the central bank's forecast of between 11.5percent and 12.5 percent for the year ending June 30.

The defence budget is set at 442.2 billion rupees, a 17percent increase from last year.

The general sales tax will be reformed to a uniform rate of 15 percent. GST will not be imposed on health, education, food items and on those merchants whose turnover is less 7.5million rupees.

This reform will be effective from October 1, 2010.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.


Dr. Shaikh said Rs 1 CED will be imposed on manufacturing of each cigarette while 30 million energy savors will be provided in a bid to conserve electricity.

He stressed upon self-reliance and resource mobilization.

Talking about unemployment, he said jobs are created when the whole economy grows.

He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.

We have to make our policies right and rise above the petty issues.

He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.

He said three dams will be built in 2010-11.

He said PEPCO wants subsidy of Rs 180 billion.

All non-developmental federal expenditures will be frozen while 40 billion will be distributed among the poor under Benazir Income Support Programme.

Baitul Maal to continue functioning with Rs2 million.

ADP is being fixed at 603 billion out of which 52 percent will be given to the provinces.

Minimum taxable income for salaried class being raised from Rs200,000 to Rs300,000.

Capital Gains Tax of 10 percent being imposed on gains from stocks held for less than 6 months; 7.5 percent on gains from stocks held for 6 months to 1 year and; no tax on capital gains from stocks held for more than a year.

Pension raised by 15 percent for the employees who retired before 2001 and 20 percent for those retired after 2001.

200,000 unemployed youth will be provided employment for 100 days under Youth Scheme

Rs. 2 Billion is to be given to Bait-ul-Mal not 2 Million.

 

[xenia]

thanks..i dint check in detail
n this 50% increase in basic salary is indeed pricking (for 17th grade its just 9-10000)..clever use of words!

 

[alibaz]

thanks..i dint check in detail
n this 50% increase in basic salary is indeed pricking (for 17th grade its just 9-10000)..clever use of words!

Yes 50% increase in basic pay on 2005 pay scales plus 100% increase in medical allowance for grade 1-16. However no increase for armed forces, FC,Rangers and police as they are already drawing one basic pay. I think government has almost squared position by giving an increase of 50 basic pay and 100% medical allowance.

 

[redgriffin]

Uh news flash, pay raise is always on the basis of basic pay so nothing out of ordinary there. Plus anybody getting 25k or less salary is exempt from income tax. I would have liked Vat as the current gst is too easy to get around. Plus the cgt needs to be imposed on all cap gains. Hum salaried class kub tuk 65% se ziada tax burden uthaieen gay, time for these haramkhor businessmen and industrialists to give their due. Pehlay tu salay hum ACCAS/CAs k paas aa ker tax chori kerwatay hain phir bhonktay hain k hakoomat kerti kiya hay. No wonder all these guys are crying in Lhr Khi etc. Jaisay in k kartoot hum bean counters ko nahi pata. Now they are all crying because vat would have led to total supply chain documentation meaning nil chance of tax evasion, the wht on gas will effect industries more than us domestic consumers. Trust me it's not going to pinch them much as their real profit margins are waaaayyy more than they make us show in their financial statements. Another thing I really like is the abolition of non productive subsidies. The govt also needs to bring agriculture into the tax net, really needs to.

 

[Hyde]

Rs34,500mn earmarked for education ​

ISLAMABAD (updated on: June 05, 2010, 23:51 PST): An amount of Rs 34,500 million has been earmarked for Education Affairs and Services in the federal budget.

According to budget figures, Rs 3,174 million have been allocated for Pre-Primary and Primary Education against amount of Rs. 2,887 million spent last year.

Rs 4,232 million have been allocated for Secondary Education Affairs and Services against Rs 3,828 million earmarked last year.

Rs 25,210 million have been given for tertiary education affairs and services as compared to Rs 23,372 million in the outgoing fiscal year.

Rs 42 million have been allocated for Social Welfare and Special Education Division against Rs 39 million spent last year.

For administrative purposes about Rs 1,260 million have been allocated against Rs 808 million spent last year.

 

[Neither Right Nor Wrong]

Some Corrections...



Brother, Rs.3259 includes provincial figures also, plus the difference is suppposed to be met out of foreign remittances which are 8.5 billion dollars this year and will surely increase next year

Foreign remittance can be defined as ‘the purchase and sale of freely convertible foreign currencies as admissible under Exchange Control Regulations of the country’.
A looser translation is the sending of money home while working in a foreign country. Thousands of people are currently working and living in a country that is not their home, and sending funds regularly back to their families in their home country.

There are two type of remittances:

1. Foreign Outward Remittance: The sending country, where the wage earner is located. The sender uses a bank or foreign exchange company to send money to foreign country. Many of the receiving banks have established remittance relationships with currency houses and banks in other countries to better facilitate the flow of remittances into the country.

2. Foreign Inward Remittance: The receiving country, where the beneficiary resides. The bank receives the money that has been sent from the sending person in the country in which the money has been earned.

Now Remittance is sent by ppl living abroad to their relatives Pak , this money can end as savings or as an investment or for eg buying a car or a TV and its not necessary this money will end up in govt's kitty.
Then how can a govt plan its budget on money, it might never receive.

plus the foreign aid KLB and WOT amount to be received from US, this will also add to the available resources

Total amount to be received in a FY under KLB , CSF ,WOT is $ 1.5 Billion and is inclusive of amount alloted to Foreign Military sales.

Rs.1667 B will be the expected amount to be collected by FBR. its just a rough idea coz i haven't studied the budget as yet.

Well if you notice, I included this amount in my initial calculations.

To me it still does not add up.

 

[M8R]

Yes 50% increase in basic pay on 2005 pay scales plus 100% increase in medical allowance for grade 1-16. However no increase for armed forces, FC,Rangers and police as they are already drawing one basic pay. I think government has almost squared position by giving an increase of 50 basic pay and 100% medical allowance.

No no thats not true - There have been 100% increase in salary of Armed Forces.

 

[AstanoshKhan]

Rs34,500mn earmarked for education ​

ISLAMABAD (updated on: June 05, 2010, 23:51 PST): An amount of Rs 34,500 million has been earmarked for Education Affairs and Services in the federal budget.

According to budget figures, Rs 3,174 million have been allocated for Pre-Primary and Primary Education against amount of Rs. 2,887 million spent last year.

Rs 4,232 million have been allocated for Secondary Education Affairs and Services against Rs 3,828 million earmarked last year.

Rs 25,210 million have been given for tertiary education affairs and services as compared to Rs 23,372 million in the outgoing fiscal year.

Rs 42 million have been allocated for Social Welfare and Special Education Division against Rs 39 million spent last year.

For administrative purposes about Rs 1,260 million have been allocated against Rs 808 million spent last year.

Would you believe it, we have no Education and Economic Affairs & Statistics ministers as yet? This position is vacant, I don't know from when and our budget is in place.

http://www.na.gov.pk/fedmin.html

Believe me there was no need to increase the pay of Govt. employees. This amount of their salaries should have been allocated to the corruption elimination, with help of which a Corruption Elimination Taskforce could have been established?

However, our education system is of a serious and utmost concern and I hope this money goes in to the right direction and in the right places, not in the pockets - which is usually the case.

Overall, a very good budget presented but again the doubt remains on its implementation as we have very disfunctional institutes all over the country, just because of inept people are (being put) in charge of it during the recent years.

but

We can only hope for the good and pray that may Allah swt bring some sanity to our leaders to work for the betterment of this country and it's people or else the situation is quite worrisome.

Taskeen na ho jis se wo raaz badal dalo,
Jo raaz na rakh paye, hamraaz badal dalo,

Tum ne b suni hogi, bari aam kahawat hy,
Anjam ka ho khatra, Aghaz badal dalo,

Pur-soz dilon ko jo muskan de na paye,
Sur hi na mile jis mai, wo saaz badal dalo,

Dushman k iradon ko hy zahir agar karna,
Tum khel wohi khelo, andaz badal dalo,

Ay dost karo himmat, kuch door sawera hy,
Agar chahte ho manzil, tu parwaaz badal dalo...

Dr. Allama Iqbal

 

[Neither Right Nor Wrong]

wrong section

 

[reeyan]

Will the 50% increase in the salaries of govt officials will also apply to the salaries of policemen and army officials????