Budget for FY-2010-11 to be presented today

[Hyde]

Budget for FY-2010-11 to be presented today​

ISLAMABAD (updated on: June 05, 2010, 00:09 PST): The National budget for the Fiscal Year 2010-11, envisaging relief measures for the common man and new strategies for accelerating pace of economic development will be presented in the National Assembly on Saturday.

This will be the first-ever budget after the National Finance

Commission (NFC) award and the 18th amendment that will enable the provinces to get more resources.

Advisor to Prime Minister on Finance and Economic Affairs, Senator Dr.Abdul Hafeez Shaikh, who is likely to take oath as Finance Minister on Friday June 4, will present the budget before the National Assembly, sources in the ministry told APP.

The consolidated outlay of the next year budget is likely to be about Rs 2.4 trillion whereas revenue target is estimated at about Rs. 1.7 trillion.

The budget will have special focus on agriculture, infrastructure and social sector development and revenue collection.

Amid domestic and international challenges, the realistic GDP growth target will be 4.5 percent while in the outgoing fiscal year 4.1 percent GDP growth has been achieved.

This year, the budget will have focus on infrastructure, human capital and social sector development, poverty reduction, promotion of investments and exports, agriculture sector development, enhancement of revenues and provision of relief in terms of safety network to the poor section of the society.

The government is keen to provide relief to the people in the next budget and has taken comprehensive measures to achieve the objective while government has already launched Benazir Income Support Programme (BISP) in an efficient and transparent manner, which is benefitting a large number of poor people across the country.


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Finally budget day

 

[M8R]

Let's see if they implement VAT and raise taxes.

 

[sparklingway]

Let's see if they implement VAT and raise taxes.

VAT is expected to be delayed for three months and hence GST is being raised by 1 percent to be 17 percent to compensate for the higher tax revenue estimations.

 

[Neither Right Nor Wrong]

VAT is expected to be delayed for three months and hence GST is being raised by 1 percent to be 17 percent to compensate for the higher tax revenue estimations.

GST is not same across the board...it varies from 17% to 24 % depending on the goods in context..so is this 1% increase is on all the goods??

 

[sparklingway]

GST is not same across the board...it varies from 17% to 24 % depending on the goods in context..so is this 1% increase is on all the goods??

The minimum defined one (although there are products on which GST in 8% thanks to the SRO system).

 

[Neither Right Nor Wrong]

^^^So does it mean IMF's last 3 tranches will be delayed??..coz govt had commitment to apply VAT from July 1.

 

[AstanoshKhan]

Budget for FY-2010-11 to be presented today​

The consolidated outlay of the next year budget is likely to be about Rs 2.4 trillion whereas revenue target is estimated at about Rs. 1.7 trillion.

Pakistan's $30.4 billion (Rs.2.6 trillion) budget for fiscal 2010-11 beginning July 1, which has allocated Rs.450 billion for defence, will be presented in parliament Saturday.

Pakistan's budget for 2010-11 to be presented Saturday

I think the link above got the calculation wrong? is it 2.4 Trillion or 2.6 Trillion?

Whatever it may be... this Rickshaw got it right.

 

[sparklingway]

^^^So does it mean IMF's last 3 tranches will be delayed??..coz of govt had commitment to apply VAT from July 1.

That has been settled. No delays, IMF is on board.

 

[Neither Right Nor Wrong]

Pak govt certainly seems to in "b/w a rock and a hard place".
On one hand it is under lot pressure from IMF to increase its revenues.
On the other hand levying of indirect taxes like VAT, which are very unpopular with "common man" as they have inflationary side effects.

But all said and done, even these taxes will have little effect if non-productive expenditures are not reduced.
And 4 yrs from now it will right be where it was 2 yrs ago ie. in front IMF, asking for more loans to pay off the previous loans.

 

[Vasily Zaytsev]

Are there any ways through which the government can reduce its expenses?

I mean expenses by various government departments incurred for themselves.

how much can be saved in this way and what are the fiscal benefits thereoff if at all any significant.

If any examples that are implemented by any government in the world to the great effect.

 

[Neither Right Nor Wrong]

^
As I explained in another thread

Pakistan's 3 major non productive expenditures:-

1. Debt financing -paying back country's loan installment for 2010-11 - Approx $ 8.5 billion

2. Defence expenditure - approx $5.3 dollars

3. And to cover losses made by various public sector enterprises eg steel mills , railaways etc for 2010-11 is approx $ 3 billion.

Now it not possible to reduce No 1and 2 at the present moment , but no 3 can reduced by privatizing Pak Steel , PEPCO , PIA, KSE.

 

[sparklingway]

My notes from the Live Budget Speech:-

Salaries for federal govt employees to be increased by 50%. Medical allowance doubled for BPS 1-15 and 15% increase in medical allowance for upper grades. Night allowances, remote area allowances, special allowances to be increased. 15 and 20% increases in pensions depending on date of retirement.

Cabinet salaries to be cut by 10%.

WoT will have a discrete allocation outside the defence budget (which is being increase by 34% itself). PAI, PSM and PEPCO have been warned that they will not receive subsidies if they do not improve their house by the end of the second quarter. BISP did not receive a large increase for it was unable to utilize its allocations last year entirely.

Budget is realistic this time. Last year's was based on unconfirmed foreign aid.

Dr Sheikh was matching the boringness of Omar Ayub's budget speech though.

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Total Outlay : 3,259 Bn Rupees
Budget Deficit: 4% of the GDP -- thankfully a realistic number
Collections:- 1,667 Bn Rupees (9.8% of GDP)
To be transferred to provinces :- 1,033 Bn as opposed to 655 Bn last year
PSDP :- 663 Bn (and provincial development programmes will be larger compared to PSDP for the first time) and PSDP allocations will be automatically released every 3 months

Federal Govt Non-development expenditures freezed for this financial year

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Now comes the main issue of GST/VAT. No GST for Health, Education and Food products. Small business with turnover below 7.5 million to be exempted. Whole issue has been mumbled. VAT has been delayed. "We want to reform GST". Something along the lines of VAT to be delayed to October 1.

Increased FED on Cigarettes (good).
Air conditioner and deep freezers - 10% FED --> good

Income Tax:-
Minimum Taxable Income :- 300,000 up from 200,000 for salaried and 300,000 up from 100,000 for non salaried class
Income Tax collection from electricity bills down to 5% from 10%

Rs 2 Bn Tax relief for people of FATA and Tribal Areas

Capital Gains Tax on stock holdings (varies for holding upto 6 months, 12 months and so on)

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Hafeez Sheikh thanked everybody including his driver. Great man !

The only criticism seems that this is such a good Budget that it might be impossible to sustain it

 

[Neither Right Nor Wrong]

Salaries for public servants to be increased by 50% (decreasing percentage increase). WoT will have a discrete allocation outside the defence budget (which is being increase by 34% itself).

Budget is realistic this time. Last year's was based on unconfirmed foreign aid.

Dr Sheikh was matching the boringness of Omar Ayub's budget speech though.

What are the allocations for PSDF this year??

 

[Tomahawk]

Federal Budget's 2010-11 total volume Rs. 3259 Billion.
Defense Budget will amount Rs. 442 Billion.

 

[ice_man]

Rs663bn allocated in PSDP-2010-11

s663bn allocated in PSDP-2010-11
Updated at: 1745 PST, Saturday, June 05, 2010 ShareThis story

ISLAMABAD: Following are the highlights of Public Sector Development Programme (PSDP) 2010-11, released here on Saturday:

Total amount of Rs. 663 billion has been allocated in PSDP-2010-11 for various ongoing and new schemes.

Out of total PSDP, the federal share is Rs. 280 billion, provincial share Rs.373 billion where as Rs.10 billion would be spent for Reconstruction and Rehabilitation of Earthquake-hit areas.

Following are the main allocations:
--- Rs.28423.8 million for Water and Power Division (Water Sector)
--- Rs.15227.5 million for Pakistan Atomic Energy Commission.
--- Rs.14565.7 million for Finance Division.
--- Rs.13629.6 million for Railways Division.
--- Rs.9395.7 million for Planning and Development Division.
--- Rs.15762.5 million for Higher Education Commission.
--- Rs.16944.5 million for Health Division.
--- Rs.10873.7 million for Food and Agriculture Division.
--- Rs.3220.1 million for Industries and Proudction division.
--- Rs.5140.9 million for Education Division.
--- Rs.5584 million for Interior Division.
--- Rs.3887.1 million for Defence Division.
--- Rs.3618.3 million for Housing and Works Division.
--- Rs.3618.7 million for Cabinet Division.
--- Rs.4115.5 million for Population Welfare Division.
--- Rs.1646.2 million for Science and Technological research Division.
--- Rs.885.6 million for Livestock and Dairy Development Division.
--- Rs.1000 million for Law and Justice Division.
--- Rs.1000 million for Environment Division.
--- Rs.1000 million for Special Initiatives Division.
--- Rs.1234.7 million for Revenue Division.
--- Rs.623.4 million for Petroleum and Natural Resources Division.
--- Rs.718.3 million for Information Technology and Telecom Division.
--- Rs.1229.7 million for Defence Production Division.
--- Rs.474.1 million for Commerce Division.
--- Rs.149.1 million for Communication Division (other than NHA).
--- Rs.518.6 million for Ports and Shipping Division.
--- Rs.246.9 million for Pakistan Nuclear Regulatory Authority.
--- Rs.152.9 million for Women Development Division.
--- Rs.107.6 million for Social Welfare and Special Education Division.
--- Rs.65.8 million for Labour and Manpower Division.
--- Rs.82.3 million for Local government and Rural Development Division.
--- Rs.125 million for Tourism Division.
--- Rs.140.8 million for ministry of Foreign Affairs.
--- Rs.549.8 million for Narcotics Control division.
--- Rs.114.4 million for Establishment Division.
--- Rs.353.9 million for Culture Division.
--- Rs.229.6 million for Sports Division.
--- Rs.74.5 for Youth Affairs Division.
--- Rs.509.9 million for Information and Broadcasting Division.
--- Rs.164.6 million for Textile Industry Division.
--- Rs.82.3 million for Statistics Division.
--- Rs.81.1 million for Ministry of Postal Services.
--- Rs.15 million for Economic Affairs Division.
--- Rs.12029.7 million for WAPDA (Water)
--- Rs. 44637 million for National Highway Authority
--- Rs.10523.5 million for Azad Jammu and Kashmir (Block and other projects)
--- Rs.6584.9 million for Gilgit-Baltistan (Block and other projects)
--- Rs.8642.6 million for FATA.
--- Rs. 5000 million for People's Works Programme-I
--- Rs.25000 million for People's Works Programme-II


LOOK AT THE HIGHLIGHTED PARTS ITS PEANUTS!!!