Budget session in the National Assembly: Finance Minister Muhammad Aurangzeb presented a federal budget of more than 18 thousand billion rupees_x000D_
Salaamabad: Federal Finance Minister Muhammad Aurangzeb presented a federal budget of 18 thousand 771 billion rupees in the National Assembly._x000D_
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In his speech, the Federal Finance Minister said that I am grateful to the coalition parties, it is an honor for me to present the government’s third budget._x000D_
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The Finance Minister said that the victory in Benin is a bright chapter, last year India was given a befitting reply, today the whole world recognizes Pakistan’s defense power, many countries want to include our fighter jets in their forces._x000D_
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Muhammad Aurangzeb said that I would like to mention the defense agreement between Pakistan and Saudi Arabia, we have a sacred and heavy responsibility, the brotherly relationship with Saudi Arabia was strengthened by the defense agreement._x000D_
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The Federal Finance Minister said that despite the losses caused by floods and the US-Iran war in the current fiscal year, our economic growth rate has reached 3.7._x000D_
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In this fiscal year, the growth rate of large-scale manufacturing was 6.1 percent, the growth rate in the services sector was 4.1 percent, the size of our economy has reached $ 452 billion, which is a new milestone, while per capita income has increased from $ 1751 to $ 1901._x000D_
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Muhammad Aurangzeb said that there has been a historic reduction in the policy rate in the last two years, foreign exchange reserves were $ 4 billion three years ago, which have increased to more than $ 17 billion, foreign exchange reserves are enough for three months of imports._x000D_
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According to the Finance Minister, remittances were $ 38 billion in the last fiscal year, the volume of remittances has reached $ 38 billion in the first 11 months of this fiscal year, remittances for the whole year will exceed $ 41 billion._x000D_
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Muhammad Aurangzeb said that the economic growth rate for the next fiscal year is likely to be 4 percent, while the average inflation rate is expected to be 8.2 percent. The budget deficit will be 3.6 percent of GDP while the primary surplus will be 2 percent of GDP._x000D_
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The FBR’s revenue is estimated at Rs15,264 billion, which is 17.6 percent more than the current fiscal year. The provinces’ share in federal revenue will be Rs8,848 billion._x000D_
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The federal non-tax revenue target will be Rs5,336 billion, the federal government’s net income will be Rs11,751 billion. The federal government’s total expenditure is estimated at Rs18,771 billion, out of which Rs8,54 billion will be allocated for markup payment._x000D_
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A budget of Rs1,000 billion has been allocated for the federal public sector development program, the federal government’s current expenditure is estimated at Rs17,495 billion._x000D_
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The Federal Finance Minister said that national defense is the government’s top priority, Rs3,000 billion will be provided for this national duty._x000D_
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Muhammad Aurangzeb said that Rs 1,071 billion is being allocated for civil administration expenses, while Rs 1,169 billion has been allocated for pension expenses._x000D_
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According to the budget document, it is estimated that Rs 822 billion will be spent on military pensions, while Rs 272 billion will be spent on civil pensions._x000D_
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Muhammad Aurangzeb said that Rs 1,091 billion is being allocated as subsidies for electricity and other sectors._x000D_
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The Federal Finance Minister said that from the current expenditure, it is proposed to allocate Rs 146 billion for Azad Jammu and Kashmir, Rs 88 billion for Gilgit-Baltistan and Rs 95 billion for the newly merged districts of Khyber Pakhtunkhwa._x000D_
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It is proposed to allocate Rs 838 billion for BISP in the next financial year, which is 17 percent more than the amount for BISP last year._x000D_
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According to the Federal Finance Minister, the salaries of government employees are being increased by 7 percent, the pension of retired employees is proposed to be increased by 7 percent, while the minimum monthly salary is proposed to be increased by 10 percent._x000D_
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According to the Finance Minister, relief is proposed for salaried individuals in 4 income syllabus._x000D_
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It is proposed to increase the tax rate to 20 percent on annual income of Rs 22 to 32 lakh, while the tax rate is proposed to increase the tax rate to 25 percent on income from Rs 32 to 41 lakh._x000D_
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It is proposed to increase the income tax rate to 29 percent on annual salary of Rs 41 to 56 lakh, while the income tax rate is proposed to increase the income tax rate to 32 percent on annual salary of Rs 56 to 70 lakh._x000D_
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The Finance Minister said that it has been decided to abolish the 9 percent surcharge on the salaried class._x000D_
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The Finance Minister said that there is a proposal to abolish super tax on income from 6 slabs of Rs 15 to 50 crores, it is proposed to reduce the super tax rate from 10% to 8% on income above Rs 50 crores, however, the surcharge on banks, oil and gas exploration companies and fertilizers will remain._x000D_
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Muhammad Aurangzeb said that there is a proposal to introduce a fixed tax system for small shopkeepers, in this system, those shopkeepers whose annual sales are less than Rs 20 crores can come, small shopkeepers will pay one percent tax of their annual sales, shopkeepers will be able to adjust their withholding tax in this tax, small shopkeepers will have to deposit at least Rs 25,000 while submitting their returns, they will not have any routine audit and they will not be liable for withholding on purchases and will be exempted from having a POS machine._x000D_
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The budget proposes to reduce the withholding tax on property transfer. It is proposed to reduce the withholding tax on property purchase for filers from 2.5 percent to 1.25 percent, while for non-filers, the withholding tax on property sale is proposed to be reduced from 5.5 to 2.75 percent._x000D_
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Muhammad Aurangzeb said that the total tax on export is 2 percent in advance income tax and minimum tax support, which is proposed to be reduced to 1.25 percent, which is under the minimum tax._x000D_
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According to the Finance Minister, there is a proposal to reduce the withholding tax on credit and debit cards used abroad to 0.5%, and to abolish the capital value tax on holding foreign assets. This tax was discouraging the disclosure of foreign assets._x000D_
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It has been decided to impose federal excise duty on imported vehicles, while it has been decided to impose federal excise duty on SUVs of 2 to 3 thousand cc, the federal excise duty is being increased on vehicles larger than 3 thousand cc, while it is proposed to impose federal excise duty on electric vehicles costing more than 20 million rupees._x000D_
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The Finance Minister said that the new auto policy is under consideration by a committee formed by the Prime Minister, the current concessional system on electric motorcycles, rickshaws and buses will remain, and a one percent sales tax facility is proposed on imported electric trucks._x000D_
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Muhammad Aurangzeb said that Rs 3,675 billion has been allocated for the national development program, Rs 1,000 billion for the federal government, and Rs 2,224 billion for the provincial development program._x000D_
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The Finance Minister said in his speech that Rs 451 billion is included for investment by state-owned enterprises, and Rs 365 billion has been allocated for the development of transportation infrastructure in the federal development program._x000D_
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According to the Finance Minister, Rs 100 billion will be invested in making the N-25 Pakistan Expressway connecting Karachi to Chaman dual-lane, Rs 30 billion will be invested in the Sukkur-Hyderabad Motorway, while work on the Karachi-Rohri section of ML-1 will begin next year, for which Rs 25 billion has been allocated._x000D_
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The Finance Minister said that to accelerate the pace of industrial development, priority has been given to power supply in Special Economic Zones, Rs 13.1 billion has been allocated for 8 hydropower projects in Azad Kashmir and GB, while WAPDA and National Grid Company will invest Rs 158 billion from their individual resources._x000D_
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Muhammad Aurangzeb said in his budget speech that Pakistan is facing serious water challenges, such as decreasing storage capacity, floods in rivers last year caused a loss of Rs 822 billion to our economy, Rs 103.1 billion has been allocated for 43 water projects in the budget._x000D_
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Rs 14 billion has been allocated for Diamer Bhasha Dam, Rs 22 billion for Mohmand Dam, while Rs 15 billion has been allocated for Dasu Hydropower Project, while Rs 10 billion has been allocated for Karachi’s Bulk Water Supply Project IV._x000D_
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The Finance Minister said that by 2035, almost half of our country’s population will live in cities, urban centers account for 55 percent of our economy, Rs 54.6 billion has been allocated in the budget for sustainable urban development and the housing sector, with this amount, 150,000 affordable housing units will be built at the federal and provincial levels, while digital master plans will be prepared for 10 major cities._x000D_
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Muhammad Aurangzeb said that Rs 6.6 billion has been allocated in the budget to increase the pace of industrial development and export competitiveness._x000D_
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The Finance Minister said that automation centers for industrial design are being established in Karachi, Lahore and Sialkot._x000D_
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Muhammad Aurangzeb said that public health care is our important national responsibility, Rs 25.1 billion has been allocated for health projects in the development budget, including expansion of cancer treatment facilities._x000D_
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Rs 46 billion has also been allocated in the budget for higher education._x000D_
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The budget proposes to eliminate taxes on sanitary pads and women’s health products, while it also proposes to eliminate income tax on contraceptives._x000D_
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The Finance Minister said that it is proposed to continue the 0.25 percent FTR concession on IT export earnings for another 3 years._x000D_
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According to the budget speech, the federal non-tax revenue target will be Rs 5,336 billion, the federal government’s net income will be Rs 11,751 billion._x000D_
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According to the budget speech, the total expenditure of the federal government is estimated at Rs 18,771 billion, Rs 8,54 billion will be allocated for interest payments, Rs 1,000 billion has been allocated for PSDP, while the current expenditure of the federal government is estimated at Rs 17,495 billion._x000D_
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According to the budget document, a total of Rs 1,169 billion is estimated to be spent on pensions, of which Rs 822 billion is estimated to be spent on military pensions and Rs 272 billion on civil pensions._x000D_
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An allocation of Rs 3,000 billion is estimated for defense, while Rs 1,091 billion is estimated to be allocated for subsidies._x000D_
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According to the budget document, the expenditure on the civil government is estimated to be Rs 1,071 billion, while Rs 430 billion is estimated to be allocated to deal with emergency situations. The total ongoing expenditure is estimated to be Rs 17,495 billion._x000D_
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According to the budget document, the size of the federal development budget will be Rs 1,050 billion, while the FBR’s tax collection target is estimated to be Rs 15,264 billion.
