Lahore, 11th June: The federal budget of Rs 8,000 billion for a new financial year will be presented today, where the salary hike likely to be 25%, Rs 1330 billion for defense, tax collection target of Rs 5829 billion was proposed.
The government will present a budget worth about Rs 8,000 billion for the new financial year in Parliament tomorrow (Saturday) in which salaries are likely to be increased by up to 25 percent.
According to the details, the federal government will present a budget of around Rs 8,000 billion for the new financial year 2020-21 in the parliament.
Prior to the presentation, the budget will be approved in a special meeting of the Federal Cabinet chaired by the Prime Minister and a final decision will be taken to increase the salaries and pensions of government employees.
The overall pay hike is expected to be 25%. The basic salary will be increased by 10 to 15 percent and the rest will be given as ad hoc relief.
According to Finance Ministry sources, the federal budget is more than Rs 8,000 billion, of which Rs 3,105 billion is for interest payments, Rs 1,330 billion for defense and Rs 5,829 billion for FBR tax collections.
There are proposals for 26.8 billion, while the import target will be 55.3 billion.
According to sources, the current account deficit target is proposed to be 2.3 billion, remittance target could be set at 31.3 billion, Rs 994 billion in grants and Rs 501 billion in subsidies, GDP.
It is proposed to have a target of 4.8% in the services sector, an inflation target of 8%, an industrial sector growth target of 6.8% and a manufacturing sector growth target of 6.2%.
Similarly, a total investment target of 16% in the national savings has been proposed. The growth target is 15.3 percent, agriculture 3.5 percent, industrial 6.5 percent and services 4.8 percent have been presented.
The development budget will be Rs 2100 billion, the volume of PSDP will be Rs 900 billion, out of which Rs 244 billion will be transport and communication, Rs 118 billion energy, Rs 91 billion water resources, Rs 113 billion social sectors, Rs 100 billion regional equality, 31 Billions of rupees in science and technology and IT sector.
Rs 68 billion is planned to be spent on SDGs while Rs 17 billion is planned to be spent on the production sector. Rs 54 billion has been allocated for integrated areas.
Rs 42 billion is being set aside for the Higher Education Commission in the social sectors.
In the next budget, the tax revenue could be Rs 5829 billion and non-tax revenue Rs 1420 billion. Amnesty for the construction sector is likely to be extended.
With the approval of the IMF, the construction amnesty scheme is likely to be extended to September or December 2021.
The ordinance may extend the period by 3 or 6 months. 350 projects worth Rs 140 billion were registered under the scheme for the construction sector and the deadline for this scheme is June 2021.
The target for net tax collections in the federal budget for the next financial year 2021-22 is to set a target of Rs 5829 billion with 24% growth.
The target for direct tax (income tax) collection from this scheme is Rs. 2182 billion and out of these direct taxes, the target for sales tax is Rs. 2506 billion, the target for federal excise duty is Rs. 785 billion.
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