Islamabad: The finance minister Ishaq Dar announced the federal budget for the fiscal year 2014-2015 in the National Assembly on Tuesday.
The budget speech presented here on Tuesday in which pension increment and 10 percent increase of package for the government employees was included. The prices of cigarette, cooking oil, cement and air tickets will be in increased. The prices of luxury vehicles, mobile phones calls and tractor will be reduced; while retailers are going to pay more tax.
The Rs3.936 trillion budget, includes development budget of Rs 806 billion consisting of Federal Public Sector Development Program of Rs 525 billion, foreign component of Rs120 billion and Rs162 billion to be generated by Wapda, NTDC and Pepco for some their projects.
A great amount of Rs1.325 trillion will be consumed for debt servicing and Rs 700 billion for defense needs. However, the target of tax revenue at Rs3.129 trillion that includes FBR taxes Rs2.810 trillion and Rs319 billion from other tax measures has been fixed by the government.
The 4.9 percent budget deficit will be financed through external financing of Rs508billion and domestic borrowing of Rs914 billion and estimated provincial surplus of Rs 289 billion.
The stabilized budget expenditure has been evaluated at Rs4.074 trillion which is 7.9 percent more than the size of the budget estimates of 2013-2014. The Rs 4.074 trillion stabilized budget considers Rs 1.175 trillion out of which provinces development budget would be at Rs 650 billion and federal share will stand at Rs525 billion.
The finance minister has also announced a 200 percent increase in the allocation of Rs 118 billion for Benazir Income Support Program by including the component of some schemes of PM’s youth program by saying the government has increased the monthly stipend by 25 percent for poverty-stricken to Rs 1500 Rs 1200.
The minimum wages for the government employees have also been increased from Rs 10, 000 to Rs 12, 000.
The government has also announced a reduction in corporate tax rate to 20 percent in order to encourage the Foreign Investors in manufacturing, construction and housing sectors.
Last but not the least, the government has done away with customs duty on import of plastic coverings and mulch films, anti-insect net and shade net for the development of agriculture department.