Finance minister unveils Rs3.945tr budget for 2014-15
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The federal cabinet on Tuesday approved the federal budget for the year 2014-15, with a total outlay of Rs3.945 trillion, and a Public Sector Development Programme allocated at Rs525billion.
Finance Minister Ishaq Dar told parliament n his budget speech that he aimed to reduce the budget deficit to 4.9 per cent of economic output in the 2014-15 fiscal year from 5.8 per cent a year earlier.
Budget spending has been set at Rs3.8 trillion ($39.3 billion), while tax revenues that Pakistan would be able to collect in the next fiscal year are estimated at 3.94 trillion rupees.
With the budget, the government has introduced welfare schemes for farmers, homeless, the unemployed, businessmen and 10 per cent relief for government employees.
Dar also said Pakistan would invest at least Rs205 billion ($2.08 billion) in power projects in the next fiscal year as part of a plan to reform the struggling sector.
Spelling out the revenue generation plans of the government, the minister said the share of provincial governments in the taxes would be Rs 1.72 trillion against Rs 1.41 trillion last year. Net resources left with the federal government would be Rs 2.22 trillion against the revised estimate of Rs 2.18 trillion for last year.
He said the expenditure for the next fiscal year had been budgeted at Rs 3.937 trillion, 2 per cent higher than the previous year's, which was much lower than the inflation rate.
The minister said the budget deficit had been reduced to 4.9 per cent and estimated at Rs 1.71 trillion for the next fiscal year. By requiring surplus of Rs 183 billion last year, the government had projected an overall fiscal deficit of Rs 1.422 trillion for the next year, he added.
Dar also announced measures to simplify the existing tax regimes and remove inequities created by SROs-based concessions, which would be carried through a phased plan.
The finance minister said that, to ensure continued stability in the stock market, it was proposed that from July 1, 2014, the Capital Gains Tax (CGT) rate would be 12.5 per cent for securities held up to 12 months and 10 per cent for those held for 12 to 24 months.—Agencies
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Jun 03, 2014 05:48pm
Lolzz...only 10 % increase in salaries
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Jun 03, 2014 06:16pm
im an officer, bps-17. 10% increase on basic pay means 2000 rupees increase. my house rent increased 2000 this year and school fees 1500 bills increased 2000 at least. not to mention other expenses on which inflation occurred. what should i do ?
kill myself or take bribes ?
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Jun 03, 2014 06:18pm
@Zafar that is only for gov employees
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Jun 03, 2014 06:29pm
@ahmad Sorry to know that. It is for this that I don't intend to join public services. I'm better paid in private sector and annual increment is about 15% a year, that becomes almost Rs.13,000. Just for fund I'm only 24 years old and have a lot to save from this salary. Any ways, feel sorry for your situation!
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Jun 03, 2014 06:35pm
Increase in govt.employees salaries is nothing keeping in view the inflation.
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Jun 03, 2014 06:38pm
Having been in Canada for 15 years and not seeing such inflation a 10% increase in salary looks like a distant dream for Canadians. But with what I have sen in Pakistan as inflation and no control over prices by anyone, 10% will go directly towards all increased bills and hence not into savings. On the other hand, I have also seen people making too many extra expenses which they can cut to save for future of their kids education etc. So, start cutting any extra expenses and start saving guys and not blame 10% increase, what if you don't get any increase..
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Jun 03, 2014 06:41pm
we are officially paying 1/3 of our budget to debt servicing. Way to go Pakistan....
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Jun 03, 2014 07:06pm
a budget based on foreign funding..
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Jun 03, 2014 07:08pm
Sadly, the budget totally ignores the betterment of the quality of living. People are living in degrading conditions because Land and construction materials are out of range of their pocket. No middle class citizen can afford a five marla plot in Islamabad now. Government should adopt such a policy that can stop investments in Lands. It should also provide Housing schemes for the low income people. A housing scheme for the federal employees is a must.
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Jun 03, 2014 07:26pm
@ahmad: Why kill yourself. The dacoits sitting in the government must face death penalty.
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Jun 03, 2014 07:27pm
Has any BUDGET ever given any relief to the thousands of Pakistanis who toil daily in blood and sweat? Can the so called parliamentarians even imagine the day to day problems that plague the ordinary Pakistanis and the plight of their countrymen? It's a SHAME!
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Jun 03, 2014 07:28pm
A retired officer has no option but to say thank you for the 10% increase in pension. The government should, however, see as to how this paltry increase will help an old pensioner who has no other source of income.
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Jun 03, 2014 07:38pm
why 118 billion for so called benazir income support...???????
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Jun 03, 2014 08:01pm
@Farhan Dear Farhan..you mentioned cutting back on extra expenses...Pakistanis have nothing to cut anymore...the people you see complaining here are mostly from middle class or below...please be mindful of your comments and understand gravity of the situation...I am also a Pakistani Canadian...living in Canada for a lot longer than you have....but am mindful atleast...my dear Pakistanis never loose hope...things never remain the same...-:)
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Jun 03, 2014 08:02pm
fine coverage from dawn...well done!
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Jun 03, 2014 08:11pm
@Syed Ahmed
The looters and plunderers of national exchequer have awarded us death sentence. People of Pakistan am sure will elect these rascals again and again.
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Jun 03, 2014 08:12pm
Increment in salaries and pensions is the matter of govt employees, questionable thing is that what is good for the jobless youngmen?????? Allocation of funds for industrial purposes are not enough to create a large number of jobs opportunities. Said budget is merely friendly for the capatalists, magnates and traders not for bottomlines.
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Jun 03, 2014 08:46pm
Total budget of National Assembly: Rs 2.609 billion. Compare this to total development budget and allocation for education and health.
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Jun 03, 2014 09:51pm
No incentives, or reliefs for the ordinaries --- A Total Flop Budget, as expected.
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Jun 03, 2014 09:52pm
what about salaries tax???
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Jun 03, 2014 09:53pm
Targeted expenditure for needy persons is highly appreciated. Rich people who are not depended on shares income (having holding power to escape CGT) are favoured with lesser CGT which is unfortunate. Atleast some minimum exemption to investors on their total income below say 100,000 per year be exempted.
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Jun 03, 2014 10:30pm
Very much orthodox budget that PML-N was supposed to present once again.
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Jun 03, 2014 10:33pm
@ahmad: my parents and the whole of my extended family are retired government servants. The main problem is that the phrase 10% increase is misleading because it is only on the basic salary only and not on the gross salary. So in marketing terms for the government, It looks very nice - 10 percent increase compared to 9% inflation but in real terms, that 10% is much much less on the gross salary.
I also remember as a kid going out to shop with my mother a day after the budget and the shopkeeper quoted her an increased price. When she protested, he replied that she was a govt. Servant and that her salary had increased so she can afford to pay him more from this increase.
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Jun 03, 2014 10:47pm
People will remember PPP. They will be missing the budgets of PPP
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Jun 03, 2014 11:09pm
this government always imposes taxes and does not increase salaries. they deal the nation like customers.
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Jun 04, 2014 12:18am
10 % increase in pay of government employees is a joke. These politicians can spend 90 billions on Metro bus service in Lahore and allocated only 25 Billion for 10 % increase in pay and pension of all the federal government employees. I think along with 10 % increase, Poison may also be provided to Government employees and their families.
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Jun 04, 2014 12:30am
Statistics have shown that an average American family earns more than the whole budget of Pak.
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Jun 04, 2014 01:18am
A common man in this country pays 14.5% sales tax on the purchase of Lifebuoy soap (total value: PKR 26) while real estate tycoons are supposed to pay a mere 0.5% as capital value tax (CVT) on the sale of a residential plot (total value: PKR 73 million for a 1000 sq.yds. plot in DHA). And then they say Pakistan is progressing ...
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Jun 04, 2014 02:25am
@ahmad Curtail your expenses. If your rent is increased by 2000 you should change your area and move to a place where the rents are on the lower side. You should be Thanking Allah that you are part of that 5 % population which is considered to be in the MIDDLE or UPPER MIDDLE class of our country because you are not living below poverty line. You know that's the problem with our nation, when our salary is 10,000 our expenses r standing at 12,000. When the salary reaches 12,000, expenses goes up to 14,000. And let me bring something to your notice that in 90% companies including banks, the annual salary increment is never beyond 10% so what should they all do? Suicide? They do not even have medical benefits. So Please THINK.....
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Jun 04, 2014 02:40am
who will increase salaries of people working for non gov entities.
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Jun 04, 2014 03:13am
@ahmad In our society it is assumed that only father is the wage earner while we want to provide a comfortable life to our kids and other family members. Schools fees are one of them. I can understand that now your monthly intake is Rs 22000 base + other benefits + pension etc , altogether I can guess Rs 30,000. You know 50% of Pakistani's living under poverty, so thankful to GOD first. Second I would suggest to ask your wife start working from home or outside to support family, in today's world not only father but mother should provide support to family.
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Jun 04, 2014 03:54am
oh man, 39$ billion ka budget hai humara, yeh tao bohat low hai, Our nation need to learn to pay tax, if anyone work, they should pay tax.. no one should run business of any kind without skipping on taxes..
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Jun 04, 2014 08:26am
@ahmad
Leave the government and absolve yourself from being a parasite and look for a real job. The leaders need to focus to make government smaller. The government and semi government employees should be de-incentivized to leave the government and work (truly work) in private sector. Data shows countries will smaller governments are more sustainable than countries like Pakistan and organizations like PIA etc.
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Jun 04, 2014 08:34am
@ahmad Luxury cars worth millions of dollars are being imported for those presently in power. Can we stop that money from getting wasted?
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Jun 04, 2014 08:35am
In the budget no increase in Employees' Old Age Benifits (EOAB) is given. Dar sb increased minimum monthly labours wadges to 11000. What about the minimum EOAB wadges which are as low as Rs 3600 per month. Dar Sb have mercy on old age benificiaries by increasing their wages to atleast Rs 6000 pm.
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Jun 04, 2014 08:36am
@Just Someone : I fail to understand why should government servants serving or retired be treated any preferentially. When I joined the government service I got better perks than I had signed up for. I left the services and joined the private sector and then moved to entrepreneurship. I was better off when in private sector compared to my colleagues because I was still accumulating pension, got free medical care and had some capital to rely on.
I think our government servant should stop whining and be thankful to what our country has given us. Ask thousands of people who would die to get a government job.
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Jun 04, 2014 08:46am
@Ahmed Dear Ahmed, I would partially agree with Farhan. we need to balance our income & expenses. I have lived in Pakistan (including myself) have always complained of what is not available. I have witnessed the Haiti earthquake and Sandy, people live & livelihood extinct. I have seen people braving the disasters with a positive attitude. One woman lost two houses in 2 years and was still steadfast. There is a misunderstanding among people about FEMA, their contribution to disasters is close to nothing.
We need to learn to adjust. I have asked my friends and younger generation in Pakistan about their willingness to pay for health insurance when they are young and healthy, answer from 90% is no. Guess what ACA mandate young to buy insurance or be penalized.
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Jun 04, 2014 09:04am
i wish people could understand that 10% increase in govt employee salary probably sounds very fancy, but in actual its only on basic salary and not gross salary. the actual increase in basic salary means 3.3% in gross salary.
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Jun 04, 2014 09:21am
@ahmad Leave job if you are not satisfied and start a business.
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Jun 04, 2014 09:38am
im an soldier, bps-07. 10% increase on basic pay means 670 rupees increase. my house rent + bills etc are not mention other expenses on which inflation occurred. what should i do ? kill myself or take bribes ?
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Jun 04, 2014 09:40am
@ahmad , u r right staff.
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Jun 04, 2014 10:10am
There is no relief for poor in this budget.
Govt only facilitating rich people and making mock with the poor.
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Jun 04, 2014 12:27pm
Rich people who are not depended on shares income (having holding power to escape CGT) are favoured with lesser CGT which is unfortunate. Atleast some minimum exemption to investors on their total income below say 100,000 per year be exempted.
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Jun 04, 2014 01:11pm
P.M.L (N) Government always play with the feelings and expectations of government employees and their families. Income tax paid by an employee is on average equal to 70% of his current basic pay. While increase is 10% of the basic pay. So Rs 10 are given and Rs.70 are taken back.Since income tax is paid on gross salary including all allowances except medical allowance.What an excellent policy of give less n take back more.
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Jun 04, 2014 01:28pm
No need increase in salary.
Only decrease 15 % prices of eatable items.
In school fees.
Medcines and hospital charges
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Jun 04, 2014 02:54pm
figures do not reflect the actual ground realities and miseries of people . I wonder how these targets will be achieved and what cost. high energy costs will increase inflation rather than crubbing it so stop playing with peoples sentiments and show them the real picture of our country.
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Jun 05, 2014 01:09pm
20 Billions for Health Sector ,, and 68 total for Education -Combined ( 188 hec project + education )
what a shame for our nation. for health and education at least 10-15 % budget must e allocated .. but here priorities are different ..
what to Give to future generations ?? Roads and Bridges ? or HEALTH and EDUCATION ?
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Jun 06, 2014 05:38am
Once again revenue is fully generated by indirect taxes to break back of middle and poor class.
Again no mention of tax on agriculture income. If it is a provincial subject, government should assess income from agriculture in all the provinces and calculate tax on it. The amount so calculated be deducted from payable to provinces by federal government.
Budget does not provide much needed incentive to most backward engineering industry.
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Jun 06, 2014 03:46pm
Hahahahahah i think this budget iz only for the betterment of shareef and chudry and for butt.s family .no relief for poor and labour
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