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Home National Federal Budget Unveiled: Key Allocations and Measures

Federal Budget Unveiled: Key Allocations and Measures

The total budget size for the next financial year is 18,877 billion rupees. Non-tax income is projected at 4,845 billion rupees, with provinces expected to receive 7,438 billion rupees.
by Aftab Mohmand - 13 Jun, 2024 237
federal-budget-unveiled-key-allocations-and-measures

The federal government has presented the budget for the upcoming financial year. According to the budget document, the total current expenditure is set at 17,230 billion rupees. Here is a detailed breakdown of the allocations:

  • Interest Payments: 9,775 billion rupees
  • Pension Payments: 1,014 billion rupees
  • Defense: 2,122 billion rupees
  • Subsidies: 1,363 billion rupees
  • Civil Government Expenditure: 839 billion rupees
  • Emergency Measures: 313 billion rupees

The total budget size for the next financial year is 18,877 billion rupees. Non-tax income is projected at 4,845 billion rupees, with provinces expected to receive 7,438 billion rupees.

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The government aims to earn 2,662 billion rupees from national savings and other sources. Additionally, the government plans to borrow 5,142 billion rupees from banks, with an estimated 30 billion rupees in revenue from privatization.

Key Allocations:

  • Pensions: 1,014 billion rupees
  • Salary Increases: A 25% increase for civil servants in grades 1 to 16, and a 22% increase for officers in grades 17 to 22. Retired employees will see a 15% increase in pensions.
  • Tax Targets: The Federal Board of Revenue (FBR) has set a tax target of 12,970 billion rupees.

Tax Adjustments:

  • Branded Clothing and Footwear: Tax increased to 18%.
  • Income Tax Exemptions: Extended for FATA and PATA regions.
  • Solar Panel Industry: One-year extension on import equipment tax exemption.
  • Withholding Tax: Increased for non-filers, retailers, and wholesalers, with the tax on non-filers proposed to rise from 1% to 2.25%.
  • Fake Cigarettes: Strict penalties and increased FEDP rate on cement.
  • Monthly Income Exemption: No tax for those earning 50,000 rupees per month.

Subsidies and Sector Allocations:

  • Electricity, Gas, and Other Sectors: 1,363 billion rupees
  • Energy Sector: 253 billion rupees, including 45 billion rupees for the Mohmand Dam Hydro Project.
  • Jamshoro Coal Power Plant (1200 MW): 21 billion rupees
  • NTDC System Improvement: 11 billion rupees
  • Water Resources: 206 billion rupees
  • Diamer Bhasha Dam: 40 billion rupees
  • BISP (Benazir Income Support Program): 593 billion rupees, with plans to increase beneficiary families to one crore.

Infrastructure and Development:

  • PSDP (Public Sector Development Program): 824 billion rupees
  • Defense Expenditure: 2,122 billion rupees
  • Electric Bikes: 4 billion rupees
  • Technology Park Development (Islamabad): 11 billion rupees
  • Export Credit (State Bank): 539 billion rupees
  • IT Sector: 79 billion rupees

This budget reflects a comprehensive approach to addressing various sectors and enhancing the overall economic framework of the country.