ISLAMABAD, June 28 (PPI) The National Assembly has passed the Finance Bill, 2024 with certain amendments, giving effect to the financial proposals of the federal government for the year beginning on the 1st July 2024.

A motion to this effect was moved by Minister for Finance Muhammad Aurangzeb. Having the total outlay of 18877 billion rupees, the budget focuses on fiscal consolidation. The gross revenue receipts have been estimated at 17815 billion rupees. These include FBR’s revenue collection of 12970 billion rupees and non-tax revenue 4845 billion rupees. The share of provinces in the federal receipts will be 7438 billion rupees.

The growth rate is expected to be 3.6 percent during the next fiscal year. Inflation is expected to be 12 percent, budget deficit 5.9 percent of GDP and primary surplus will be one percent of GDP. The development budget has been set at the historic level of 1500 billion rupees.

The budget envisages 25 percent increase in the salaries of government employees from Grade-1 to 16 and 20 percent from Grade-17 to 22.  Fifteen percent raise has been given in the pension of retired government employees. The minimum wages have been enhanced from 32,000 to 37,000 rupees.  Speaking on the occasion Finance Minister Muhammad Aurangzeb said cardiology stents, surgery items and books as well as ex-FATA and PATA have been given tax exemption.

He said that this tax exemption for education and health was given in very difficult economic conditions. The Finance Minister further said that exemptions to the agricultural inputs like fertilizers and pesticides as well as exemption to Researchers and teachers will continue.

He said that we all need pure milk and we want to promote it, but tax exemption cannot be given on packed milk which is not of standard. The House has approved 53 supplementary demands for grants pertaining to various ministries and divisions for 2022-23 and 25 demands for fiscal year 2023-24.  Besides, the National Assembly approved 26 excess demands to meet the excess expenditure of various ministries and divisions for financial year 2022-23.