Abb Takk News

PM Summons Cabinet Meeting Ahead Of Budget

ISLAMABAD: Prime Minister Imran Khan has summoned a special meeting of the federal cabinet to finalize the federal budget for the fiscal year 2019-20 on Tuesday.

The federal budget will be presented on June 11 (Tuesday) in the Parliament.

The meeting is expected to give approval for Rs6.8 trillion federal budget and the budget deficit would be Rs3 trillion.

The budget envisages fiscal management, revenue mobilization, measures for economic stabilization and growth, reduction in non-development expenditures; boosting exports besides providing relief to the masses, promoting investment for job creation and people friendly policies for the socio-economic prosperity of the country.

The main focus in the budget would be on fiscal consolidation, revenue mobilization while the government is likely to enhance allocations for the social safety net for providing maximum relief to a vulnerable segment of the society, sources said.

The government has proposed to allocate more than Rs250 billion for the payments of interests on loans, while a total of Rs925 billion would be allocated for the development program of the federal government.

The government is likely to set the revenue collection target at Rs5.55 trillion for the fiscal year 2019-20.

The government has announced health tax on the cigarette to cut rising tobacco consumption that kills nearly 160,000 Pakistanis every year.

Health tax of Rs10 per pack of 20 cigarette sticks and 1 percent tax on all beverages (Rs1 on 250ml) has been proposed by NHS Ministry along with an increase in Federal Excise Duty on cigarettes in the upcoming budget.