ISLAMABAD: Federal Government all set to present Rs18,500 billion growth-oriented budget today Wednesday that is focused on mitigating people’s sufferings, transforming agriculture sector
Rs2,100 billion for defence and Rs9,700 billion for interest payments on loans reserved and the target of GDP growth in the budget is 3.6 percent
The target of Rs12,970 billion tax collection has been set for FBR
The budget for fiscal year 2024-25 would be presented in the National Assembly by Federal Minister for Finance and Revenue Muhammad Aurangzeb at 4pm.
The budget has been formulated while considering the existing challenges being faced by the economy on domestic and international fronts.
Hence, mitigating people’s sufferings, transforming agriculture sector, promoting Information Technology (IT), boosting exports and industrial growth, and bolstering businesses would be the main focus of the document, sources said.
The government is committed to presenting a pro-people, business-friendly and progressive Federal Budget FY 2024-25. It will pursue policies aimed at fiscal consolidation to contain budget deficit.
Revenue mobilization, measures for economic stabilization and growth, reduction in non-development expenditure, job creation and people-friendly policies for the socioeconomic prosperity are expected to feature in the budget.
It would also focus on social sector development besides introducing reforms for improving governance and boosting the private sector investment.
On the revenue side, the government would introduce measures for bringing improvements in the system of tax collection, broadening the tax base, and facilitation to tax-payers.
Keeping in view the robust growth of revenue during the current fiscal year (2023-24), the government is likely to set the revenue collection target at over Rs1,200 billion for the fiscal year 2024-25.
The sources said the preparations for the announcement of the federal budget was in full swing in accordance with the prescribed timeliness.
The budget is being prepared in close coordination among all departments and ministries involved in budget-related process including the presentation of the budget in parliament and launching of the Economic Survey, sources added.
The federal government will present a budget of more than Rs18,900 billion.
In the federal budget, Rs2,100 billion have been reserved for defence. It reflects a 19.29 percent increase as the allocation for fiscal year 2023-24 was Rs1,804 billion.
The federal government had allocated Rs920 billion in the federal budget for 2017-18, Rs1,100 billion in 2018-19, Rs1,153 billion in 2019-20, Rs1,289 billion in 2020-21, Rs1,370 in 2021-22 and Rs1,563 billion in the budget for 2022-23.
An amount of Rs9,700 billion has been earmarked for interest payments on loans.
Besides, the government has allocated Rs1,500 billion for development projects during the next financial year.
The target of GDP growth in the budget is 3.6 percent.
In the budget, Rs253 billion have been allocated for the energy sector, Rs827 billion for infrastructure, Rs800 billion for energy sector subsidy, Rs206 billion for water resources, Rs279 billion for transport and communication.
The target of tax collection of Rs12,970 billion has been set for the FBR in the coming financial year. The FBR will have to collect an additional revenue of Rs3,720 billion, Rs3,452 billion direct tax and Rs267 billion customs duty.
The volume of taxes of land revenue will be Rs11,379 billion, the volume of direct taxes will be Rs5,512 billion, the volume of income tax will be Rs5,454 billion. An additional target of Rs1,773 billion has been given in the income tax volume.
On the other hand, a meeting of the parliamentary party of PPP was held under the chairmanship of Bilawal Bhutto-Zardari, in which the members of the assembly expressed their concerns regarding the budget.
Sources said, the participating members have decided not to sit in the session citing concerns that the party was not briefed about the details.
They said the conditions on which they supported the government were yet to be implemented.
Speaking to media, PPP leader Syed Khurshid Shah said, “We do not know which and what kind of budget is being presented. We are ignorant of the agreements with the IMF and China.
“In the past, the opposition was taken into confidence, but an ally is not taken on board,” he said.
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