Pakistan Budget 2020-21 for next Financial year Latest News Updates Today:
The federal government has presented a budget of Rs. 7137.9 billion for the next financial year 2020-21 with a deficit of Rs. 3437 billion while no new tax has been imposed to provide relief to the people.
A meeting of the National Assembly was held under the chairmanship of Speaker Asad Qaiser in which Federal Minister for Economic Affairs Hamad Azhar presented the budget. There are following key points of Fiscal Budget of 2020-2021 regarding Federal Government of Pakistan as given below:
1. Cheap motorcycles and rickshaws, expensive double cabin cars
In the federal budget, advance tax on auto rickshaws, motorcycle rickshaws and motorcycles up to 200cc has been abolished while the tax rate on double cabin vehicles has been increased.
2. Local mobile phones cheap
The budget proposes to reduce taxes on locally made mobile phones.
3. Cigars, cigarettes, energy drinks are expensive
It is proposed to increase the federal excise duty on the retail price of cigars and cigarettes from 65% to 100% and to impose a 25% federal excise duty on caffeinated energy drinks. Tax rates on e-cigarettes and imported machinery have been increased.
4. Double the tax on expensive schools
The government has imposed more than 100% tax on educational institutions that charge high fees. Educational institutions charging more than Rs 2 lakh per annum will have to pay 100% more tax.
5. Increasing the limit on ID card transactions
The limit for buying and selling without ID card for traders has been increased from Rs 50,000 to Rs 100,000.
6. 3437 billion budget deficit
The federal revenue in the budget is estimated at Rs. 3700 billion and the expenditure is estimated at Rs. 7137 billion, thus the budget deficit is Rs. 3437 billion which is 7% of the GDP.
7. 1289 billion defense budget
The budget has set a target of Rs 4963 billion for FBR tax collections while the defense budget has been set at Rs 1289.134 billion.
8. Education and health, electricity, transport
Rs 40 billion for Pakistan Railways, Rs 30 billion for education, Rs 20 billion for health, Rs 80 billion for energy and power, Rs 12 billion for food and agriculture, Rs 12 billion for climate change to provide affordable transport to the people. Rs 6 billion, Rs 20 billion for science and technology and Rs 118 billion for national highways.
9. Locust, Successful Youth Program, Agriculture
Rs 10 billion has been earmarked for locust eradication, Rs 2 billion for successful youth program while the amount allocated for financial assistance to artists has been increased from Rs 250 million to Rs 1 billion.
10. The share of provinces is 2873.7
In the next budget, it has been decided to revise the NFC award. The total revenue is estimated at Rs. 6573 billion, of which FBR’s revenue is Rs. 4963 billion and non-tax revenue is Rs. 1610 billion. 2873.7 billion.
11. Corona virus package
A package of more than Rs. 1,200 billion has been approved for the eradication of corona virus, Rs. 71 billion has been allocated for the purchase of medical equipment and Rs. 150 billion has been allocated for poor families.
12. Reduction in federal development budget
The federal development budget for the next financial year is being reduced by Rs 51 billion over the previous year. The total federal development budget will be Rs. 1324 billion, Rs. 650 billion for federal ministries and divisions and Rs. 674 billion for the provinces.
13. Reduction in tax on hotel industry
It is proposed to reduce the tax rate on hotel industry from 1.5 per cent to 0.5 per cent for six months.
14. Special grant
In the budget proposals, Rs 100 billion has been set aside for the emergency fund. A special grant of Rs 55 billion has been earmarked for Azad Jammu and Kashmir, Rs 32 billion for Gilgit-Baltistan, Rs 56 billion for integrated districts in Khyber Pakhtunkhwa, Rs 19 billion for Sindh and Rs 10 billion for Balochistan.
The budget for the next financial year 2020-21 at a glance (Short Summary of Budget 2020-21 of Pakistan)
15. Cabinet meeting (Salary / Pay and Pension Increase News Today for Government (govt) Employees
Earlier, the federal cabinet approved the budget for the next financial year and in view of the current situation, it has been decided not to increase salaries and pensions. A meeting of the Federal Cabinet was held under the chairmanship of Prime Minister Imran Khan in which a budget of Rs. 7600 billion was approved for the next financial year.
16. Decision not to increase salaries and pensions in Budget 2020-21 of Pakistan Today Updates
According to sources, the cabinet has decided not to increase the salaries and pensions of government employees and also approved not to impose any new tax in the budget.
Parliamentary party meeting
After the cabinet meeting, the prime minister left for a parliamentary party meeting to discuss the government’s strategy for the budget meeting. The Prime Minister took the parliamentary party into confidence on the budget for the next financial year.