Pakistan budget-Fiscal year 2013-2014: Discussions

[Jango]

pretty interesting tweets about the budget:

https://twitter.com/search?q=#Budget2013&src=tren

Tax on Haj?

What do they mean by that?

 

[Hyde]

Oh yeah, I forgot about that in my initial post.

How are they going to implement the tax on foreign dramas and movies?

Well it's simple

Imagine they impose tax of 10,000 rupees for example on each marriage held in marriage halls. So if 10 marriage proceedings happened in a marriage hall each week. You pay 100,000 rupees to the government. Most people can afford that much during the marriage proceedings. If I was to pay 50,000 rupees to book the marriage hall, I could afford 60,000 rupees as well - simple

This simple step can generate billions of rupees each year...

Poor people can organise marriage ceremony at home and remain tax free

 

[Fahad Khan 2]

 

[Jango]

Well it's simple

Imagine they impose tax of 10,000 rupees for example on each marriage held in marriage halls. So if 10 marriage proceedings happened in a marriage hall each week. You pay 100,000 rupees to the government. Most people can afford that much during the marriage proceedings. If I was to pay 50,000 rupees to book the marriage hall, I could afford 60,000 rupees as well - simple

This simple step can generate billions of rupees each year...

Poor people can organise marriage ceremony at home and remain tax free

I was taking about the movies and dramas.

For movies it makes some sense that the cinema ticket prices would be increased, but how will they do it with the dramas on TV?

 

[Fahad Khan 2]

 

[Jango]

You cannot imagine my reaction when I saw those 2 mangoes and 'chupo' on top of them!

Thanks for giving me a hearty laugh my friend!

 

[Slav Defence]

ISLAMABAD: Finance Minister Ishaq Dar presented Pakistan's federal budget for the year 2013-14 in the National Assembly on Wednesday.

According to the government's proposed budget unveiled in parliament, the Pakistan Muslim League- Nawaz (PML-N) government expects Pakistan's 2013-14 fiscal deficit to narrow to 6.3 per cent of gross domestic product.

The proposed budget of Rs 3.5 trillion is expected to be funded partially by tax revenues of around 2.75 trillion rupees, Dar said.

To read the complete text of the finance minister's budget speech, click here.

The finance minister said that the government will spend the bulk of the development budget on the energy sector and that a total of Rs 225 billion have been allocated for the purpose.

Dar said that Rs 59 billion have been allocated for the construction of new dams.

The budget, aims at restricting power sector losses, is expected to do so by bringing down subsidies and gradually increasing electricity tariff for all consumers.

The finance minister announced that the government was looking to take austerity measures to bring the economy back on track.

Dar said that the government was hoping to save Rs 40 billion from the government's kitty by pursuing its planned austerity drive.

He said that the government had decided to freeze and scrap all secret funds for all ministries, except fot national security agencies.

"Yesterday, the Ministry of Finance has issued necessary instructions for immediate ceasing of such of such expenditures and return of unspent balances. Simultaneously, the allocations for the next year have been cancelled," he said.

Dar added that the Prime Minister's discretionary fund had also been scrapped, and that the expenses of the Prime Minister's House will be brought down by over 40 per cent.

He also announced that 3G telecom licenses will be auctioned and foreign exchange reserves will be raised to $20 billion in three years.

Dar said the government plans to build the road network infrastructure across Pakistan. He said that the motorway network will be expanded.

He also announced that the Gwadar sea port will be linked to the northern areas of the country through a road link. He also announced that the Pakistan Railways will be converted into a corporation.

Taxation

Dar said that Pakistan's tax-to-GDP ratio during the previous PML-N government in the 90s was 13.8 per cent, however, that figure had plummeted to only 8.9 per cent.

He said that the government planned to bring tax-to-GDP ratio back up to 15 per cent.

He said that the government's objective was to make tax evaders pay taxes, and widen the tax net.

"An effective tax system focuses on direct taxes. Unfortunately, our tax system focuses more on indirect taxes," said Dar.

The finance minister said that the government had proposed to bring General Sales Tax up from 16 per cent to 17 per cent.

A new 0.5 per cent levy to be imposed on movable assets, to be channeled to Income Support Program. Dar said that he would introduce the levy by volunteering himself.

The finance minister announced that a new adjustable withholding tax will be introduced on foreign films and dramas.

In an announcement welcomed by the house, the finance minister said that the government had planned to grant 100 per cent exemption all duties and taxes to imported eco-friendly hybrid cars up to 1200cc.

Micro-finance scheme

The finance minister also announced a new micro-finance scheme for entrepreneurs.

"It is decided to allocate Rs.5 billion to launch a scheme of Qarze-Hassana (loans without mark-up). These will be made available through selected micro finance providers including 49 Akhuwat, NRSP and Provincial RSPs. at least 50 percent of those benefiting from these markup-free loans will be women," he announced.

Public Sector Development

The PML-N government has earmarked Rs 78 million for the Human Rights Division in Public Sector Development Program (PSDP) for the year 2013-14.

The government has earmarked Rs. 18490 million for the projects of Higher Education Commission (HEC) in the Public Sector Development Programme (PSDP) for the year 2013-14.

A total of Rs 15928.627 has been allocated for ongoing schemes while Rs. 2561.373 has been allocated for the new schemes.

Meanwhile, the government has allocated Rs 5 billion under the Public Service Development Programme (PSDP) for special programmes. The amount has been allocated for Tameer-e-Pakistan Programme.

Rs.315 million have been allocated for the Textile Industry Division projects

 

[Hyde]

Did they say in 2013 or during the tenure?

As no government can raise the wages above 10,000 for sure... It's like putting extra pressure on the government and ultimately kick inflation in the country.

You might have 8000 rupees per month wages and pay 70 rupees per kg for food item.

You might have 16,000 rupees per month wages and pay 140 rupees per kg.

 

[Jango]

Bhaiyo aur behnon, suna hai doodh kay sath sath pepsi bhi mehengi ho gayi hai!!!

Last time I bought a coke bottle, with the bottle refund, it was 18 Rs!

The three things I would be most looking forward to will be:

1- THe 500 house schemes, total 1000.

2- Circular debt finished in 60 days, how the heck will they do that?

3- The reduction in expenditures of PM house and government offices. It's all good on paper, but real issue is implementation. Yeh to Gilani nay bhu kaha tha keh kharchay kam kar dain gay!

 

[Fahad Khan 2]

Did they say in 2013 or during the tenure?

As no government can raise the wages above 10,000 for sure... It's like putting extra pressure on the government and ultimately kick inflation in the country.

You might have 8000 rupees per month wages and pay 70 rupees per kg for food item.

You might have 16,000 rupees per month wages and pay 140 rupees per kg.

In previous budget every year PPP govt was increasing govt employed salaries why not now????

اس بجٹ کی مختصر سی سمری یہ ہے کہ

یہ بجٹ امیروں اور سرمایہ داروں کیلئے ہے، غریبوں کیلئے اس بجٹ میں کچھ نہیں ہے۔ یہ بجٹ ملازمت پیشہ افراد کیلئے وبال جان ہے۔

پہلے عوام کوئی بھی چیز خریدتی تھی تو 16 فیصد سیلز ٹیکس دیتی تھی اب 17 فیصد دیگی۔

تاجر طبقے اور جاگیردار طبقے کو نوازا گیا ہے۔ جاگیردار طبقے کی آمدنی پر کوئی ٹیکس عائد نہیں کیا گیا۔

دودھ پر سیلز ٹیکس کی چھوٹ ختم کردی گئی اور اس فیصلے سے دودھ کی قیمتوں میں 17 فیصد اضافہ ہوجائے گا۔

سرکاری ملازمین کی تنخواہوں میں کوئی اضافہ نہیں کیا گیا۔

ن لیگ نے وعدہ کیا تھا کہ وہ مزدور کی تنخواہ 18 ہزار کرے گی لیکن اس بجٹ میں کوئی اضافہ نہیں کیا گیا۔

ن لیگ نے بلٹ ٹرین چلانے کیلئے کوئی بجٹ نہیں رکھا۔

نوجوانوں کو بلاسود قرضہ دینے کا وعدہ کیا تھا اور ن لیگ نے وعدہ پورا کیا 8 فیصد شرح سود کیساتھ۔

اوٹ پٹانگ سکیمیں جاری رکھی گئیں یا نئی شروع کردی گئیں۔

ایک بار پھر سرمایہ دار اور جاگیردار جیت گئے اور عوام ہار گئی۔۔​

 

[Hyde]

The three things I would be most looking forward to will be:

1- THe 500 house schemes, total 1000.

So in simple words, it's 1000 x 500 = 500,000 houses (enough to accomodate 2-3 million people since we have larger families in Pakistan). Well it sounds interesting but the budget allocated to do this job is too little to be realistic. So I guess it's either splited in 2 or more years or it's too difficult to achieve this target. Nevertheless, it's at least a good project on paper and if turns into reality, what else is needed!

2- Circular debt finished in 60 days, how the heck will they do that?

By taking IMF or Saudi loans. They can arrange 100 or 200 billion rupees from here n there from within the current budget, that doesn't seem difficult but rest of the money will be taken from loans.

3- The reduction in expenditures of PM house and government offices. It's all good on paper, but real issue is implementation. Yeh to Gilani nay bhu kaha tha keh kharchay kam kar dain gay!

The only achievable/realistic claim of PML-N out of the three mentioned by you in this post.

They can do it, just need to say good bye for luxurious lifestyle

 

[Peaceful Civilian]

What is pay of labor??. I hope that it is 18000 Rs per month as promised by PMLN in election campaign.

 

[Edevelop]

what about minimum salary as per pmln promised?

it will be increased to 15,000 gradually.

 

[Fahad Khan 2]

اسحاق ڈار صاحب عوام سے اپیل کر رہے ہیں کہ ایمانداری سے ٹیکس دے۔

خواجہ سعد رفیق کہہ رہے ہیں کہ ریلوے پحران پر قابو کرنے کیلئے ہر ایک کلومیٹر کیلئے 1 روپے کرایہ بڑھایا جائے گا۔

احسن اقبال کہتے ہیں کہ ملک کی حالت ٹھیک کرنے کیلئے عوام کو کڑوی گولی کھانی پڑی گی۔

کیا یہ خزانہ عوام نے خالی کیا ہے۔ آپ لوگ اُن کو کیوں نہیں پکڑتے جنھوں نے یہ خزانہ خالی کیا ہے۔ لیکن شاید اُس میں تو آپ بھی شامل ہے​

What is pay of labor??. I hope that it is 18000 Rs per month as promised by PMLN in election campaign.

 

[Jango]

Nevertheless, it's at least a good project on paper and if turns into reality, what else is needed

Most of the budget looks good on paper, implementation is the real thing.

By taking IMF or Saudi loans. They can arrange 100 or 200 billion rupees from here n there from within the current budget, that doesn't seem difficult but rest of the money will be taken from loans.

SO that wuldn't solve the problem would it? I mean taking loans, you would have to repay them as well. With interest. So then to repay that loan you would have to arrange finances again and if God forbid you don't get your act straight after getting the circular debt out of the equation on a emergency basis, you are screwed for even a longer time!

Instead of taking a loan and doing it in 60 days, do it in one year on your own incentives. But let's see how they do it.