Finance Minister unveils Rs18.877 trillion relief-oriented federal budget
GDP growth target for the fiscal year 2024-25 is fixed at 3.6 percent, whereas the inflation rate is expected to remain 12 percent; Rs. 2,122bn earmarked for defence sector in budget 2024-25; Proposes upto 25% increase in salaries, 15% in pensions of employees; Proposes to hike minimum wage Rs 36,000; Income tax rates for salaried individuals remain unchanged, with exemption limit at Rs. 600,000 annually; Rs 45 bn to be saved annually by abolishing public sector vacancies; Govt plans to invest a hefty amount in education sector in order to provide suitable environment for the education of children; BISP’s budget increased up to Rs. 593 billion to support disadvantaged segments; 5,000 journalists, media workers to get health insurance in first phase;
ISLAMABAD (APP): Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday unveiled the Rs18.877 trillion relief-oriented federal budget for the fiscal year 2024-25.
Presenting the federal budget 2024-25 in the National Assembly, the finance minister said that GDP growth target for the fiscal year 2024-25 is fixed at 3.6 percent, whereas the inflation rate is expected to remain 12 percent.
He said that the budget deficit to GDP during the period under review is estimated at 6.9 percent, whereas the primary surplus during the review period is projected at 1.0 percent of the GDP.
The minister said that the Revenue collection of the Federal Board of Revenue is estimated to Rs12,970 billion during up-coming fiscal year, adding that tax revenue collection during the current fiscal year grew by 38 percent and the provincial share would be Rs7,438 billion.
He said that the non-tax revenue targets of the federation are fixed at Rs3,587 billion, whereas the net income of the federal government would be Rs9,119 billion.
The total expenditures of the federal government is estimated at Rs18,877 billion out of the total amount of Rs9,775 billion would be spent on interest payments.
The government has allocated Rs1,400 billion for Public Sector Development Program in its current budget, adding that an additional amount of Rs100 billion would be allocated under Public Private Partnership, he added.
This year, he said, over all development budget was the highest in the country’s history comprising Rs1,500 billion.
The minister said that the government would provide Rs2,122 billion for defence, and Rs839 billion would be allocated for Civil Administration.
Meanwhile, an amount of Rs1,014 billion is also allocated for pension expenses, adding that Rs1,363 billion are allocated for the subsidy of the gas, electricity and other sectors.
The Finance Minister further said that total grants amounting to Rs1,777 billion is allocated for the promotion of BISP, AJK, Gilgit-Baltistan, merged districts of KP, HEC, railways and IT sectors.
Finance Minister said that the government has declared a historic federal PSDP valued at Rs1,500 billion, which was higher than 101 percent of the last year’s revised PSDP.
He said that despite the fiscal constraints, the government has enhanced its budgetary allocations,which would help to develop the volume of infrastructure including transportation, energy, IT and water resources and improve the living standards of the people in the country.
Senator Aurangzeb said that in PSDP 2024-25 special focus is paid to the completions of ongoing projects as 83 percent of resources are allocated for the completion of ongoing schemes and 17 percent for the new development schemes.
During the financial year 2024-25, it is proposed to allocate 59 percent of resources for the development of infrastructure development and 20 percent for the social sector development.
To ensure the equitable development in AJK, GB and merged districts of the KP, the government has allocated at 10 percent and around 11 percent for other sectors development including IT, telecom, science and technology, governance and production sector.
The government has included projects related to support the productivity of exports oriented industries to enhance their competitiveness, to expend the digital infrastructure in the country.
Senator Muhammad Aurangzeb said that the government is also paying special focus on the development of the transportation sector and is determined to further improve the network of roads and highways to strengthen the connectivity of cities to handle the increasing traffic volume.
The expansion of the infrastructure of energy and to modernize it is also a priority he said, adding the development of hydropower dams, solar plants installation and transmission lines to ensure efficient distribution to tackle growing demands of the energy.
Besides, he said that special attention would be paid to flood control, ensuring the supply of potable water through the construction of dams, improvising the irrigation system and developing of water sanitation system through water resource management.
These projects would help to develop infrastructure, improve transportation, energy, and overcome the challenges to achieve economic prosperity ultimately helping improve living standards of the citizens, the minister said.
In the PSDP, Aurangzeb said, for the next fiscal year, it was proposed to allocate Rs824 billion for infrastructure development, out which an amount of Rs253 billion for the energy sector, Rs279 billion for transport and communication, Rs206 billion for the water sector development would be incurred.
He said that it was also proposed to allocate Rs 86 billion for Planning and Housing, and Rs280 billion for Social Sector Development, whereas an amount of Rs 75 billion for AJK and GB is also proposed in the budget.
The Finance Minister said that the government is also paying special attention to skill development and special allocations are made for this purpose, particularly to impart training to huge bulges of youth in the county to enhance employment opportunities.
Senator Aurangzeb said that a special package is proposed for the development of Karachi, as it was the mega city of the country and plays a vital role in country’s economy, adding that it was a prerequisite to initiating a comprehensive program for modernizing the basic infrastructure of the city.
He said that measures are also proposed for the supply of drinking water in Karachi City under K-4 project, besides preparing projects for the development of other cities including Mirpur Khas, Hyderabad, Sukkhar and Benazir Abad.
The minister said that under the direction of the prime minister, to modernize the health infrastructure in Islamabad, Rawalpindi, AJK,KP and other areas, a comprehensive plan was devised to provide the latest and best medical services to the people of these areas. In this regard, a proposal was received to construct Quaid e Azam Health Tower in the Pakistan Institute of Medical Sciences hospital to ensure the state of the art medical facilities to the people.
Minister for Finance and Revenue Senator Mohammad Aurangzeb on Wednesday proposed 20-25 percent increase in the salaries on ad-hoc basis and 15 percent enhancement in the pensions of the Federal Government employees, realizing their financial hardships due to the increased inflation.
Presenting the Federal Budget for the fiscal year 2024-25, the minister said despite financial constraints, the government had decided to give 25 percent ad-hoc relief in the salaries of employees from Grade1-16 and 20 percent to Grade-17-22 employees aimed at increasing their purchase power.
He also announced to increase the minimum wages from existing Rs 32000 to Rs 37000 per month.
Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday said that the government was taking steps to reduce its expenditures.
Delivering the budget speech in the National Assembly, he said that besides introducing reforms in the pension scheme, there was a proposal to abolish public sector vacancies from BPS 1 to 16 which would result in Rs 45 billion annual saving.
He said that a committee had been constituted to reduce the size of government structure which would present its recommendations to the Federal Cabinet soon.
He said planning was being done for right sizing of the Federal Government.
The minister said that there was a proposal to allocate funds for every division for capacity development and technical assistance.
To provide maximum relief to the disadvantaged segments of society, the federal government has increased budgetary allocations for the Benazir Income Support Programme (BISP) up to Rs. 593 billion, registering 29 percent increase as compared to the last year.
This was revealed during the budget speech presented in the National Assembly by Federal Minister for Finance and Revenue, Muhammad Aurangzeb on Wednesday.
The number of beneficiaries who were receiving quarterly stipends under Benazir Kafaalat scheme has been increased from 9.3 million up to 10 million while the stipend amount will also be increased keeping in view the prevailing inflation.
Around 100,000 more children will be enrolled in Benazir Education stipend scheme increasing the overall stipends number up to 10.4 million.
During the next Fiscal Year, 5,00,000 more families will be included in the Benazir Nashonuma Programme which is aimed at prevention of stunted growth in children duringthe first 1000 days of growth.
In order to promote economic inclusion and improve financial condition of the people, BISP is introducing Poverty Graduation and Skill Development programme. Apart from this, BISP is also introducing Hybrid Social Protection Programme for financial independence of the poor segments.
Minister for Finance and Revenue Senator Muhammad Aurangzeb announced health insurance scheme for journalists and media workers while presenting the Federal Budget 2024-25 in the National Assembly on Wednesday.
According to him, 5,000 journalists and media workers would be given health insurance under the scheme, while 10,000 more would get the facility under its second phase.
He lauded Prime Minister Shehbaz Sharif for resuming health insurance for scheme while assuming the charge of premiership for the second time.
The minister congratulated Minister for Information, Broadcasting, National Heritage and Culture and his team for their contribution in the relaunch of the scheme.
The best investment of any government is in the human development, therefore the incumbent government has planned to invest a hefty amount in education sector in order to provide suitable environment for the education of children.
Finance Minister in his Budget Speech on Wednesday said that to ensure provision of quality education to our youth, the government had taken numerous steps including improvement of infrastructure and educational facilities in 167 schools of the federal capital.
Similarly, the government has planned to start a ‘School Meal Pogramme’ under which healthy diet would be provided in 200 primary schools of ICT to improve the physical and mental growth of the students.
While highlighting the importance of digital literacy, the government would facilitate the schools with tablets & internet, Chromebooks, smart screens, and also introduce digital interventions and blend learning. Furthermore, digital libraries would be established to promote the culture education, and research.
As many as 16 degrees colleges of the Islamabad would be transformed into result oriented training institutes with cooperation of renowned universities like NUST, NUML, NSU and COMSATS. These institutions would offer six months courses to increase employment opportunities for youth.
The government is going to introduce education voucher scheme for the enrolled students of private sector schools aimed at providing access to quality education to the poor and needy students.
Similarly, Early Childhood Education (ECE) Centers would be established in 100 schools so that a strong foundation of education could be provided to the small children.
However, Pink Buses were being introduced for the traveling of female students from village to city.
On the directions of the Prime Minister, Daanish Schools project was being spread till Islamabad, Balochistan, Azad Jammun and Kashmir, and Gilgit-Baltistan.