Pakistan, which is now negotiating a $6 billion bailout with the IMF, set a growth target of 4.8 per cent of GDP for fiscal 2021-22 and a fiscal deficit target of 6.3 per cent on Friday. Shaukat Tarin, the Finance Minister, presented the budget to parliament. Its entire expenditure is Rs 8,487 billion.
-The budget for 2021-22 has specific favourable provisions for the salaried class.
Tarin stated that the budget’s objectives are to strike a balance between fiscal deficits and economic growth. Gross revenue for the coming fiscal year is anticipated to be Rs7909 billion, up from Rs6395 billion in the preceding fiscal year.
This is a massive increase of 24 per cent in gross income. According to him, FBR revenues are expected to increase by 24%, from Rs4691 billion to Rs5829 billion. Non-tax revenues are expected to increase by 22%.
Tarin stated that the provincial share of federal taxes would grow to Rs3411 billion from Rs2704 billion last year. This equates to an additional Rs707 billion, or a 25% increase. He stated that this would allow provinces to invest in development and important social sectors.
The target for GDP growth is set at 4.8 per cent.
The finance minister revealed that the administration had set a 4.8 per cent GDP growth target for FY22. Net federal revenues after provincial payments are Rs4497 billion, up from Rs3691 billion last year. This is an increase of approximately 22%.
The overall deficit for fiscal years 2021-22 is projected to be 6.3 per cent, down from 7.1 per cent in the current fiscal year. The primary deficit is expected to be 0.7%. Despite COVID-19, the government has remained on its programme of immediate deficit reduction.
Development expenditures have been boosted to Rs900 billion from Rs630 billion, representing an almost 40% rise. Tarin stated that they would maintain austerity throughout the government.
Tarin added that subsidies have increased to Rs682 billion from Rs430 billion. These mainly include Independent Power Producers (IPPs), tariff differential subsidies, and food concessions.
Important announcements
· Rs900 billion given for the federal PSDP – a 40% increase over the previous year
· The agriculture sector allocated Rs12 billion
· Rs118 billion for distribution of electricity
· Rs61 billion for the Fund to Address Viability Gaps
· Rs14 billion for programmes aimed at mitigating climate change
· Vaccine purchase budget of $1.1 billion
· One hundred billion rupees for the Covid-19 Emergency Fund
· Sindh receives an Rs12 billion special gift
‘Everyone will be pleased,’ Prime Minister Imran Khan declares.
Earlier, a reporter questioned Prime Minister Imran Khan on the budget’s populist nature. “With the budget, everyone will be satisfied,” he responded.
Tarin stated that Prime Minister Imran Khan wishes to make history by uplifting four to six million low-income households starting next year through a bottom-up method. He noted that each family would receive an Rs500,000 interest-free business loan. Each agricultural home would receive an Rs2050,000 interest-free credit for agriculture and an Rs200,000 loan for tractors and equipment. These families would receive low-interest mortgages of up to Rs2 million. Each home will receive a Sehat Card, and 1% of households will receive free technical training. He stated that this is a necessary condition for Imran Khan to fulfil his pledge of Riasat-e-Madina.
Tarin stated that the government’s primary endeavour for social security and poverty alleviation is the Ehsaas Program. The upcoming budget proposes Rs260 billion for this programme.
Pakistan Tehreek-e-Insaf (PTI) claims to have proposed the fiscal year 2021-22 budget that is pro-people, business-friendly, and growth-oriented. The government, according to the Express Tribune, has fixed the minimum pay at Rs20,000. Meanwhile, the budget for fiscal years 2021-22 has no new taxes on the salaried class.