The finance Minister Ishaq Dar has unveiled the budged 2016-17 in national assembly with the total volume of Rs 4.43 trillion by setting GDP growth rate at 5.7 per cent. The budget has announced through a televised speech which is traditionally the highest rated broadcast event of the year.
Following are the highlights of the budget 2016-17:
Key Targets:
Growth rate: Government has set GDP growth rate at 5.7 per cent as in the current fiscal year government had achieved 4.7 growth rate, highest in last eight years.
Fiscal Deficit: Government set to restrict the fiscal deficit at 4.3% of the GDP while the finance minister clamied it will be more narrowed to 3.5 per cent in FY2107-18.
Inflation: Finance Minister Isaid per capita income had risen to $1,561 per head, while inflation was down to 2.82 pc, the lowest in ten years.
Tax Revenue: The target of Rs 3.9 trillion set to collect tax revenue included 170 bn new taxes, finance miniserter said governemnt to reache target and we want to push the tax-to-GDP ratio to over 10pc next year.
Allocations:
- Rs 800 billion allocated for development budget higher than 100 bn from last year
- Minimum wage has been increased to Rs14,000 as last year, the amount went up from Rs12,000 to Rs13,000.
- A total of Rs11.4 billion will be allocated to the telecom sector
- A total of Rs115 billion allocated for the BISP
- Government has increased federal employees salary by 10 per cent
- RS Rs 22 billion for federal ministries and SAFRON
- Rs 188 billion allocated for National Highway Authority
- Rs 125 billon allocated for CPEC
- Rs 860 billion allocated for Defence budget with increase of 10 per cent
- Rs 169 billion spared for subsidies
- Rs 1354 allocated for payment loans and interest
- The target of Rs 3600 billion set to collect tax revenue included 170 bn new taxes
- Rs 130 billion allocated for energy project
- Rs 84.1billion allocated for Education in which 21.5 billion for only higher education
- Rs 78 billion spared for Railways
- Ad-hoc allowances of 2102-2013 became the part of basic salary
- 10 per cent increase in federal government employees pension announced
- Government allocated Rs 12.1 billion for health
- A total of Rs2.7 tr has been allocated to General Public Services
- Rs 1.06 bn has set aside for environment
- Rs 100 bn sets aside for the rehabilitation of effected people during Zarb-e-Azm operation