Islamabad, June 12, 2020 (PPI-OT): A tax-free and relief-oriented budget for the next fiscal year with a total outlay of 7294.9 billion rupees has been announced. Minister for Industries and Production Hammad Azhar presented the budgetary proposals in the National Assembly on Friday.
The Minister said the gross revenue receipts have been estimated at 6573 billion rupees. The FBR tax collection target has been set at 4963 billion rupees while the non-tax revenue is estimated to be about 1610 billion rupees. Under the NFC Award, 2874 billion rupees will be transferred to the provinces. The provincial share in federal taxes is estimated at 2873.7 billion rupees.
The net revenue receipts have been estimated at 3699.5 billion rupees indicating an increase of 6.7 percent over the budget estimates of the outgoing fiscal year. The net capital receipts have been estimated at 1463.2 billion rupees, which are 75.93 percent higher than the outgoing fiscal year.
The Minister said the external receipts for the next year are estimated at 2222.9 billion rupees. The development expenditure outside PSDP has been estimated at 70 billion rupees in the budget. The total federal expenditures are estimated at 7,137 billion rupees with a budget deficit of 3437 billion rupees, which is seven percent of the GDP. The primary balance will remain -0.5 percent.
The size of Public Sector Development Program for 2020-21 is 1324 billion rupees. Out of this, 676 billion rupees have been allocated to provinces. Federal PSDP has been estimated at 650 billion rupees, out of which 418.7 billion rupees for federal ministries and divisions, 100.4 billion rupees for corporations, 3 billion rupees for Earthquake Reconstruction and Rehabilitation Authority and seven billion rupees for COVID response and other natural calamities program.
Giving the targets set for next fiscal year, Minister for Industries Hammad Azhar said GDP growth target has been set at 2.1 percent, which remained negative four percent in the outgoing fiscal year. He said the current account deficit will be confined to 4.4 percent. The inflation will be brought down from 9.1 percent to 6.5 percent. The foreign direct investment will be enhanced by 25 percent.
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