ISLAMABAD – Finance Minister Ishaq Dar presented the budget for the upcoming fiscal year 2017-18. It was PML-N government’s fifth budget with the total outlay of Rs. 4.778 trillion.
Budget at a glance:
– The total outlay of the budget 2017-18 is Rs 5,301 trillion.
– The resource availability during 2017-18 has been estimated at Rs 4,681.2 billion.
-The net revenue receipts for 2017-18 have been estimated at Rs. 2,926 billion.
– The provincial share in federal taxes is estimated at Rs. 2,348.2 billion.
The net capital receipts for 2017-18 have been estimated at Rs. 552.5 billion.
-The external receipts in 2017-18 are estimated at Rs. 837.8 billion, showing an increase of 2.2 percent.
-The overall expenditures during 2017-18 have been estimated at Rs 5,103.8 billion.
-The share of current and development expenditures respectively in total budgetary outlay for 2017-18, is 73.7 percent and 26.3 percent.
-The expenditure on general public service is estimated at Rs. 2,553.6 billion.
-The expenditure on general public service is estimated at 2,553.6 billion.
-The development expenditure outside PSDP has been estimated Rs 152.2 billion.
RECEIPTS:
TAX REVENUE Rs. 4,330.5 billion
FBR Taxes Rs. 4,013.0 billion
• Other taxes Rs. 317.5 billion
NON-TAX REVENUE 979.9 billion
a) Gross Revenue Receipts 5,310.3
b) Less provincial share 2,384.2
i) Net revenue receipts (a-b) 2,926.1
ii) Capital receipts (non-bank) 528.0
iii) External receipts (net) 511.4
iv) Estimated provincial surplus 347.3
v) Bank borrowing 390.1
vi) Privatization proceeds 50.0
TOTAL RESOURCES (i to vi) Rs. 4,752.9 billion
EXPENDITURE:
CURRENT Rs. 3,477.1 billion
Interest payments Rs. 1,363.0 billion
Pension Rs. 248.0 billion
Defence affairs & services Rs. 920.2 billion
Grants and transfers Rs. 430.2 billion
Subsidies Rs. 138.8 billion
Running of civil government Rs. 376.8 billion
DEVELOPMENT Rs. 1,275.8 billion
Federal PSDP Rs. 1,001.0 billion
Net lending Rs. 122.6 billion
Other development expenditure Rs.152.2 billion
TOTAL EXPENDITURE (A+B) Rs. 4,752.9 billion
Key features:
The total outlay of the budget is Rs. 4.75 trillion
Total tax revenues target has been set at Rs. 4.33 trillion, of which the Federal Board of Revenue will collect Rs. 4.01tr.
The development expenditure for next year will be Rs. 1.001 trillion.
The defence budget has been set at Rs. 920.2 billion.
The minimum wage will be set at Rs. 15,000.
Agriculture, SMEs and IT will be given tax breaks.
By 2018 summers, nearly 10,000MW of electricity will be added to the national grid, eliminating load-shedding completing.
BISP will be allocated Rs. 121 billion for 5.5 million beneficiaries.
Agriculture:
- Nearly Rs. 1.001 trillion will be given out in agricultural loans next year.
- Agricultural credit will be extended at 9.9pc on Rs50,000 amount to farmers who hold 1.2m acres of land.
- Imported fertiliser will be subsidised.
- Urea will be sold at Rs. 1,400 per bag.
- Other fertilisers’ prices will also be kept constant through subsidies.
- The State Bank will also help link the banking system to the land record management system to facilitate farmers in securing loans.
- Tubewells will be provided subsidised electricity.
Industrials:
- Zero-rated schemes for textiles, leather and other sectors will be continued.
- To promote textiles, cotton hedge trading will be introduced. A brand development fund will also be created.
- An online b2b and b2c portal for textile trading will be introduced.
- Custom duty on raw hides will be eliminated.
Housing:
- The government will provide guarantees for housing loans for up to Rs. 01 million.
Infrastructure:
- Pakistan Development Fund will be established.
- Pakistan Infrastructure Bank will be established to provide loans to private infrastructure projects.
Financial sector:
- Microfinance institutions will provide loans to low-income individuals worth Rs. 8 billion in total.
- Withholding tax on branchless banking will be eliminated.
- SMEs will be provided easy-to-access loans through a risk mitigation facility secured with Rs. 3.5 billion from the State Bank.
Information Technology:
- An IT park is being established with the help of South Korea
- New IT companies will be exempted from income tax for the first three years.
- IT exports from Gilgit, Fata and will be exempted from sales tax.
- Withholding tax on mobile phones to be reduced from 14pc and custom duty on smartphone sets will be cut to Rs. 650 per set.
Development expenditures:
- Federal development expenditures have been increased 37pc.
- Energy and infrastructure will get 67pc of the PSDP budget. Rs411bn will be allocated for this.
Energy:
- Loadshedding will be history by next year.
- 401bn rupees will be allocated to energy projects.
- Energy for All program will receive Rs. 12.5bn
- Dasu project Rs. 54bn.
- LNG projects to receive Rs. 70bn.
- Diamer Bhasha will receive Rs. 21bn.
- Neelum Jhelum will receive Rs. 19bn.
- Tarbela-IV will receive Rs. 16.4bn.
- Jamshoro plant will receive Rs. 16.2bn.
- Transmission and distribution lines from Matiari to Lahore will be builty.
Water:
- Government is focusing on building dams and improvement the water distribution infrastructure.
- 38bn will be allocated under this head.
Roads and highways:
- 320bn will be allocated to national highways.
Railways:
- 45.9bn to be allocated to Railways, including for 75 new engines, 830 bogies and 250 coaches and the Peshawar to Karachi railway line.
Human development:
- 35.7bn for Higher Education.
- Health programs will receive Rs49bn.
- Hospitals will receive Rs10bn.
- 12.5bn will be allocated for Clean Drinking Water for All.
- Sustainable development goals will get Rs30bn.
Gwadar:
- 31 new projects, including a new airport, 200-bed hospital and desalination plants.
CPEC:
- 180bn have been allocated for CPEC projects.
Special projects:
- 45.6bn for projects Azad Jammu & Kashmir, Gilgit Baltistan and Fata.
Security:
- All Army officers and jawans will receive a 10pc special allowance other than the salary increment in lieu of their sacrifices in Pakistan’s war against militancy.
Major heads:
- 2,384bn to be given to provinces.
- Defence budget will be Rs920bn.
- PSDP will be Rs1,001bn
- Budget deficit will be limited to 4.02pc of GDP, contingent on spending on the ‘war against terrorism’,
Taxes:
- Target to raise them to 15pc of GDP.
- Corporate sector will get relief in the form of a 30pc effective corporate tax rate.
- Islamic banking will face the same taxing regime as commercial banks.
- Withholding taxes on new car registrations have been cut for lowest three categories.
- Cement FED will be increased from Rs1 per kilogramme to Rs1.25/kg,
- Commercial import of clothing will be taxed at 6pc.
- Steel sector will be taxed at 10pc compared to the current 9pc.
