ISLAMABAD: Pakistan Tehreek-e-Insaf government on Tuesday presented its first budget with total outlay of Rs 7.022 trillion for the fiscal year 2019-20, registering growth of 30 percent against the revised budget of Rs 5.385 trillion for current fiscal year (2018-19).
State Minister for Revenues Hammad Azhar presented the budget in the National Assembly, amid protest by the Opposition parties.
The minister said that total federal revenues have been estimated at Rs 6.717 trillion which is 19 percent higher than the previous year’s revenues of Rs 5.661 trillion.
The collection of revenues by Federal Board of Revenue (FBR), he said are estimated to be recorded at Rs 5.555 trillion which are 12.6 percent of Gross Domestic Product (GDP).
The minister of state said out of total revenue collections, an amount of Rs 3.255 trillion would be distributed among the provinces under 7th National Finance Commission (NFC) Award, which is 32 percent higher than the current year’s share of Rs 2.465 trillion.
He said Net Federal Revenues for the upcoming fiscal year have been estimated at Rs 3.46 trillion against the revenues of Rs 3.07 trillion during current fiscal year, which is 13 percent higher.
Similarly, he said the federal budget deficit would be Rs 3.56 trillion, whereas the provincial budget surplus is estimated to be at Rs 423 billion for the year 2019-20.
Minister of State for Revenues Hammad Azhar said the consolidated fiscal deficit for the coming year is estimated at Rs.3.137 trillion or 7.1% of the GDP as against 7.2% of the GDP in financial Year 2018-19.
He said with respect to the worst economic situation, inherited by the incumbent government around 10 months ago, when total debt and liabilities had reached to
over Rs 31,000 billion, foreign debt and liabilities were around US$97 billion, foreign exchange reserves with State Bank of Pakistan had fallen from $18 billion to less than $10 billion and Current Account Deficit touched the historical mark of $20 billion, it had to take measures to control the situation.
Presenting the measures taken by the government to stabilize economy, Hammad Azhar said imports duties were increased to cut trade deficit by $4 billion in 10 months.
He said during the period, remittances were increased by $2 billion, and electricity circular debt which had reached Rs.38 billion per month, was brought down by Rs.12 billion to Rs.26 billion per month.
Besides, he said the government also managed to mobilize $ 9.2 billion from China, UAE and Saudi Arabia to support balance of payment situation.
He said due to government’s measures to support industrial sector, higher volumes of exports were witnessed as knitwear exports increased by 16%, readymade garments by 29%, fruits by 11% and vegetables increased by 18%, and basmati rice by 22%.
Similarly, he said an agreement has been reached with the International Monetary Fund (IMF) for a $6 billion programme. Once approved by the IMF board, this programme will have benefits such as generating additional international assistance of $2 – $3 billion from the World Bank and Asian Development Bank at relatively lower interest rates and achieving stabilisation of the economy and build a sustainable platform for growth.
“A deferred payment facility of $3.2 billion for purchase of oil and gas products from Saudi Arabia was also acquired to reduce pressures on foreign reserves besides operationalising Islamic Development Bank for deferred payment facility of $1.1 billion”, he said adding with these measures, it is expected that the current account deficit for the year will reduce by $7 billion this year.
With respect to targets of different economic indicators set by the government for the year 2019-20, the minister of state pointed out that by reducing imports and aiming for higher exports, the government wants to bring current account deficit from $13 billion estimated this year to $6.5 billion in 2019-20.
“A challenging target of Rs. 5,555 billion FBR revenue collection will be combined with aggressive expenditure controls to reduce primary deficit to 0.6% of GDP. Both the civil and military governments have announced unprecedented reduction in expenditures”, he said.
Budget Speech (English)
Salient Features of Budget 2019-20
Finance Bill
Budget 2019-20 Document In Urdu
Economic Survey 2018-2019
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