The Pakistan Tahreek-i-Insaf (PTI) government is all set to present its first federal budget for the fiscal year 2019-20 with an estimated outlay of around Rs 6.8 trillion on Tuesday (today).
The National Assembly has already been summoned for the presentation of the federal budget.
The budget envisages fiscal management, revenue mobilisation, measures for economic stabilisation and growth, reduction in non-development expenditures, boosting exports, providing relief to the masses, promoting investment for job creation and people-friendly policies for the socio-economic prosperity of the country. The budget will have emphasis on austerity, fiscal discipline, external sector management and protecting the poor. It will also focus on social sector development besides introducing reforms for improving governance and boosting private sector investment.
On the revenue side, the government will introduce measures for bringing improvements in the system of tax collection, broadening the tax base, and facilitation to taxpayers. The government is likely to set the revenue collection target at Rs 5.55 trillion for the fiscal year 2019-20. It is expected that the budget deficit will stay at Rs 3 trillion. For the first time in country’s history, no increase will be made in the defence budget. It is likely that new taxes amounting to Rs 750 billion will be imposed on commodities of daily usage, including consumer items, electric appliances, tractors, agricultural tools and items of clothing. The government is expected to seek a 10 percent increase in salaries and pensions of government employees of Grade 1 till 16. The government has decided not to grant any increase in salaries to senior bureaucrats as well as the top officeholders in the upcoming budget. No increment will be given to the prime minister and the president.
