Real Estate Update, Latest Prices & Market Overview

This Is What Budget 2019-2020 Is All About!

Get real time updates directly on you device, subscribe now.

Read Time: 6 mins

The most talk-about annual budget 2019-20 was presented in the National Assembly by Hammad Azhar, the Minister of State for Revenue, who evaluated the budget allocation for the financial year for the lawmakers and the nation.

The Brief Overview

During the important announcement, the minister had to face a disorderly opposition who were in an uproar and making slogans and chants during the proceedings. Azhar’s podium was surrounded by the opposition members, who constantly objected the ongoing speech, adding in difficulty to the situation.

Salient Features Budget 2019-20

1. In contrast to the estimated Rs 4,917.2 billion budget of 2018-19, the year 2019-20 has an estimated resource availability of Rs 7,899.1 billion.

2. The provincial share has been raised 25.7% from the budget estimates of 2018-19, and the value is estimated at Rs 3,254.5 billion during 2019-20.

3. The share of General Public Services is 76.9% of the current expenditure, estimated to be Rs 5,607.0 billion.

4. Out of the overall expenditure of an estimated Rs 8,238.1 billion, the current expenditure is Rs 7,288.1 billion for 2019-20

5. There is an 87.7% rise in the net capital receipts for 2019-20, is estimated at Rs 831.7 billion as compared to the budget estimates of Rs 443.1 billion in 2018-19.

6. Valuing in 38.9% higher than 2018-19, the total outlay of budget is Rs 8,238.1 billion for the budget estimates of 2019-20.

7. Valuing in 12.8% higher than the budget estimates of 2018-19, the net revenue receipts are estimated at Rs 3,462.1 billion for the year 2019-20

8. For the 2019-20 budget, the external receipts are estimated at Rs 3,023.3 billion, which is a 171.2% increase over the budget estimates for 2018-19.

9. In the budget of 2019-20, Rs 85.8 billion is estimated for development expenditure outside PSDP.

10.Rs 1,613 billion is allocated in 2019-20 to the Public Sector Development Programme (PSDP). The provinces will be entitled to Rs 912 billion of the total. An estimated Rs 701 billion of the total is allocated for federal PSDP, with Federal Ministries/Divisions receiving 348.2 billion, Corporations receiving Rs 348.2 billion, Earthquake Reconstruction and Rehabilitation Authority (ERRA) receiving Rs 5 billion, Relief and Rehabilitation of IDPs receiving Rs

17 billion, Security enhancement receiving Rs 53 billion, Prime Minister’s Youth Skill Development Initiative receiving Rs 5 billion, Clean Green Pakistan Movement/Tourism getting Rs 2 billion, Gas Infrastructure Development Cess getting Rs 1 billion, Merged areas of FATA 10 Year Development Plan getting Rs 48 billion, and Pakistan Sustainable Development Goals (SDGs) and Community Development Programme getting Rs 24 billion

11. Indicating a decrease of 75%, the bank borrowing for meeting expenditure in 2019-20 is estimated to be at Rs 339 billion, which is Rs 688.7 billion less than the revised estimates of 2018-19.

Directing to the speaker, the minister addressed that, “Billion Tree Tsunami and Clean and Green Pakistan initiatives were launched, FATA and merged areas were put under special concentration and brought into the national streamline.”

Azhar extolled the efforts of the Prime Minister and Army Chief by saying, “I pay my respects to the Army Chief and the Chief of Armed Staff Qamar Javed Bajwa for their exemplary role in trying to curb the menace of economic instability.”

It was communicated by the minister to the NA that against the Rs 4917.2 billion of the outgoing financial year, Rs 7899.1 billion is the estimated resource availability for the current financial year.

Indicating an 18.7% rise over the budget estimated of 2018-19, the gross revenue receipts for the current financial year are estimated at Rs 6717 billion.

For the current financial year, the net value of the budget for the federal government is estimated to be Rs 3463 billion, after the transfer of provincial share in gross revenue.

Indicating a 25.7% rise from the year 2018-19, the provinces will receive an estimated share of Rs 3254.4 billion from the federal taxes during the current financial year.

Reflecting an increase of 33% over the estimates of the year 2018-19, the estimate for the tax revenues in the next financial year will be Rs 5282,160 million.

Valuing in at 12% of the GDP, Rs 5550 billion is set as the collection target for the FBR.

HIGHLIGHTS

  • A new initiative is established by the government to support the penurious and needy, these initiatives include ‘Ehsas Program’ and ‘Sehat Insaf cards’ which aim to provide relief to the disadvantaged.
  • The introduction of ‘Rashan Card’ scheme in the budget will entitle the cardholders to ration throughout the year.
  • In order to complete the existing development projects and to start new development projects all over the country, the appropriate funds have been allocated.
  • An increase in value from Rs 5000 to Rs 5500 has been applied to the ‘Ehsas program’
  • As per the Prime Minister’s Youth Affairs initiative, there is an increase in children’s stipend from Rs 750 to Rs 1000.
  • To secure the land for Diamer Dam, Rs 20 billion has been assigned.
  • There is a proposal for Rs 80 billion being allocated to the energy sector which will be implemented soon
  • Higher education will receive a total of Rs 43 billion
  • ‘Kamyab Jawan Program’ has received approval of Rs 100 billion from the Prime Minister Imran Khan
  • Pakistan steel mills will be assessed by foreign investors who will evaluate and improve the unfavorable conditions of the mills.
  • Azhar also revealed that mobile card taxation will amount for Rs 1 billion.
  • 1000CC cars will witness a 2.5% increase in tax.
  • Prompt action will be taken to put an end to the illegal practice of money laundering, which is harmful to the country nationally and internationally, as stated by Azhar, who said that a new system will be Launched to end this.
  • An increase in the minimum wage to Rs 17500.
  • Azhar said that there will be a 10% reduction in the monthly income of Parliament officials, which the prime minister has agreed to.
  • It was agreed that employees of grade 1-10 will have a 10% increase in salaries in the upcoming financial year, however, Grade 21 and 22 will have no change in salaries.
  • Daso Hydro Power project has been assigned Rs 55 billion.
  • The speech also revealed that a scheme for asset declaration has been started that allows undisclosed and unnamed properties to be fetched into the tax net. Properties and benami accounts will also come under this scheme. A payment of 4% will make money kept abroad white.
  • National Highway Authority has been assigned Rs 156 Billion.
  • Federal development projects have been assigned Rs 950 Billion.
  • The employees of grade 17-20 will receive 5% increased salaries.
  • LNG will have a 5% customs duty.
  • Cream and flavored milk will have a 10% tax imposed on them.
  • An increase in Federal Excise Duty (FED) from 11% to 14% on mineral water
  • An increase of FED from 11.25% to 13% on soft drinks
  • Marble industry electric tariff is suggested to be reduced by 1.25 per unit
  • Girls will receive a stipend of Rs 1000, increased from the previous Rs 750.
  • Tax will be imposed on Gold, Silver, Diamond and other precious gems
  • Companies will have a 29% tax rate for 2 years
  • Tax relief will be offered to institutes who hire fresh graduates
  • The import duty on over 1600 items was abolished, and it was stated by Azhar that revenue witnessed a rapid increase due to import.
  • “Government finalizing reforms project in customs tariff, taking measures to curb import of cloth.”
  • “Duty on wooden furniture has been decreased,” said Azhar
  • An increase from 8% to 17% for the sales tax on sugar.
  • An increase to 17% for the sales tax on leather products.
  • Restaurants and bakers will have a reduced sales tax ratio, from 17% to 7%.
  • Tax on mobile phones reduced by 3%.
  • An unchanged 17% General sales tax.
  • Edible oil and ghee will have a 17% federal excise duty imposed on them.
  • Abolishment of the condition that prohibited non-filers from buying properties exceeding 5 Million rupees.
  • Abolishment of the ban for non-fillers that prohibited them from purchasing properties worth Rs 500,000.
  • Steel sector will have 17% FED imposed on it.
  • Rehabilitation and assistance of IDPs will be assigned Rs 17 billion.
  • Issuing bonds proposed for a tax refund.
  • Within 2 years, tax credit on purchasing machinery will be abolished.
  • Royalty will have a 15% withholding tax imposed on it.
  • The defense budget has been allocated Rs1.15 trillion.
  • Federal Board of Revenue has introduced valuation for properties along with recommendations to impose withholding tax on properties.
  • On every 10,000 cigarettes, a FED of Rs5,000 will be applied.

Through the misconduct of the previous governments, the government is dealing with massive economic mayhem, stated the minister.

Azhar also stated that will the help of the nation and by following the footsteps of the founder of the nation, Quaid-e-Azam Muhammad Ali Jinnah, the government will go all-out to bring the economy to a stable place

“Prime Minister Imran Khan had directed his economic team in an earlier meeting to ensure a minimum burden on the poor segment of the society.”

The minister requested the official to draft a people-friendly budget, that will be crucial for economic stability.

It was expressed by Azhar after the speech that the anti-corruption campaign has increased its magnitude and it was evident to him that the opposition was feeling the pressure.

“We did not award a National Reconciliation Ordinance (NRO) deal to the opposition this time around and they are certainly distraught about the fact, the business of the state will go on as normal,” Said Azhar.

It was expressed by the minister that the economy is on the way to improvement.

PTI’s mini-budget:

The government’s second mini-budget was announced by Asad Umer, the former finance minister, on January 23. It majorly focused on improving the supply-side condition for businesses and incentivize domestic reinvestment by taking revenue-based measures.

Umer stated after unveiling the budget that the Supplementary Finance Bill (Second Amendment) 2019 also known as the government’s mini-budget was, in reality, ‘economic reforms bill’, which had the main aim of promoting investment and giving support to the national economy

The Previous Budget By PMLN For 2018-19:

The federal budget of the financial year 2018-19 was presented by Pakistan Muslim League, the former government of Pakistan, in April last year with a sum of Rs 5.9 trillion

The targeted tax revenue was Rs 4.435 Trillion and a fixed 6.3% was targeted for the GDP growth rate. Defense sector was allocated Rs 1.1 Trillion.

For the mitigation of poverty, Rs 688 million were allocated and the federal expenditure assigned Rs 1010 billion with the provinces getting Rs 1030 billion. There were significant features of the budget of the previous financial year.

Comments
Loading...