Islamabad June 10 2022: This year government is expecting fiscal deficit at 8.6% of GDP which will be reduced to 4.9% in the next fiscal year, the budget document reveals.
Individuals earning less than Rs 1.2 will be exempted from tax and for individuals and AOPs limit has been enhance to Rs0.6 million.
Government has set FBR tax to GDP target at 9.2% which is still lower when compared with regional average of 8.6%. Federal government increases 15% salaries of Federal Government employees.
For Pension government has allocated Rs 530 billion. An amount of Rs 3,144 billion has been allocated for Interest payment, out of which domestic interest payment is Rs 2,770 billon and Rs 373 billon for external debt servicing.
An amount of Rs 1,523 is allocated for Defense spending. An amount of Rs 550 billion will be spend for Federal Government expenditures, Rs 530 billion for Pension and an amount of Rs 1,515 billion will be spend on subsidies and Grants of Rs 1,090 will be given.
FBR revenue will be Rs 7,004 billion out of which provinces share will be Rs 4,100 billion. Federal government will kept revenue of Rs 4,904 billion. Non-tax revenue will be Rs 2,000 billion.
Federal government total expenditure will be Rs 9,502 billion out of which Rs 3,950 billion will be spend on debt servicing and Rs 800 billon for PSDP.
In PSDP government has allocated Rs 136 billion for development of Azad Kashmir and Gilgit Baltistan, Rs 395 billion for infrastructure, Rs 73 billion for electricity transmission out of which Rs 12 billion allocated for Mohmmand Dam, Rs 183 billion for Hydel projects, Rs 202 billion for roads and connectivity, Rs 70 billion for SDG, Rs 24 billion for Health, Rs 17 billion for IT, Rs 11 billion for Agriculture and Rs 5 billion for Industrial Agriculture.
An amount of Rs 354 billion has been kept for Benazir Income Support Program.
Government will give subsidies of Rs 570 billion in electricity bills of the consumers and Industries. In lieu of Petroleum subsidy government has allocated Rs 71 billion.
An amount of Rs 65 billion is allocated for HEC budget.
