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8/6/2019 Federal Budget 2011-12
http://slidepdf.com/reader/full/federal-budget-2011-12 1/4
Total size of budget is Rs 2,767 billion
Budget 14.2% higher as compared to previous year
Total resource availability at Rs. 2.463 trillion
Current expenditure is Rs. 2315 billion
Current expenditure share 83.7%
General Public Services Rs. 1660 billion
Total tax collection is Rs1.952 trillion
The fiscal deficit target at 4% of the GDP
Decrease in subsidies to Rs166.5 billion
Provincial share is Rs. 1203 billion
Capital receipts (net) is Rs. 396 billion
External receipts is Rs. 414 billion
Size of PSDP is Rs. 730 billion
Provinces share in PSDP is Rs. 430 billion
Reduction of duty to 5% on pharmaceutical raw materials
Reducing federal excise duty & eliminating special excise duty
Withdrawal of exemption of sales tax on defense stores
Increase in duty slabs on Cigarettes.
Rationalizing zero-rating regime
Increase in the income tax limit from Rs 300000 to Rs 350000
Exemption on 15 out of 40 items from federal excise duty
Decrease in tax on cash withdrawals from 0.3% to 0.2%
Waiving of zero-rated regime for five top export sectors
Amount of Rs495 billion for defense
Amount of Rs295 billion for Security expenditure
Increase in Salaries by 15% and pension 20-25%
Education to getRs39513 million& health Rs2.646 billion
Rs1, 034 billion for retiring foreign loans & interest payments
Reduction in the rate of Sales Tax from 17% to 16%
Abolishing GST on sugar and imposition of 8% excise duty
Total Public debt to be Rs10, 020 billion
SALIENT FEATURES OF THE BUDGET 2011-12
JUNE, 2011 JUNE, 2011 JUNE, 2011 JUNE, 2011
POLICY POLICY POLICY POLICY BRIEF 10BRIEF 10BRIEF 10BRIEF 10GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)
8/6/2019 Federal Budget 2011-12
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304
125
414
396
1529
12032732
658
2074
2767
Bank Borrowing
Surplus for Pay & Pension
External receipts
Net Capital receipts
Net Revenue
Less Provincial ShareGross Revenue
Non-Tax Revenue
Tax Revenue
Total Resources
Receipts
Federal PSDP
66%
loan and
grants to
Provinces
12%
Other
Development
22%
Development Expenditure
Current
Expenditure
84%
Development
Expenditure
16%
Expenditure
Interest Payments
34%
Repayment of
foreign loans
11%
Pension
4%
Defence
21%
Grants and transfers
13%
Subsidies
7%
Running of Civil Government
9%
Provision
1% Current Expenditure
POSITION OF RECEIPTS AND EXPENDITURE
8/6/2019 Federal Budget 2011-12
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GOVERNMENT BUSINESS COMMUNITY POVERTY
Increasing resource mobilization
Boosting economic activity
392 regulatory duties to be abolished
Special excise duties to be abolished
Additional Rs182 billion via unannounced RGST
Withdrawal of sales tax exemption on items
Lower deficit target to decrease expenditure
Increased PSDP to boost economic activity
Taxing new sectors and items for increasing tax/GDP ratio
Private credit for investment
Bank transaction tax decreased
Incentives for equity based projects
Increase in capital market growth
Increase in Production
Removal of duplicity in tax
Decrease in tax on raw materials
Increase of salaries and pensions
No additional tax on education, food & health
Increasing tax limit from Rs300,000 to Rs350,0
Decrease in sales tax to help end consumers
Exemptions on several items to ease inflation
IMPLICATIONS
8/6/2019 Federal Budget 2011-12
http://slidepdf.com/reader/full/federal-budget-2011-12 4/4
The government has tried to provide relief to
the business community and we will continue
to play their part in contributing towards the
economic recovery of the country.
(OICCI President Naved A Khan)
It is a good effort made to bring 2.3 million
new taxpayers in tax net and appreciated
reduction of duty on 40 items and withdrawal
of special excise duty.
(Senior Vice President KCCI, TalatMehmood)
“ There is zero possibility to revive the proposal
to bring the assets of the rich and influential
companies into the tax net for increasing tax
base.
(Dr Hafeez A Pasha, Head of Revenue
Advisory Council (RAC))
Government has not favored construction
sector in the budget to escalate the pace of
economic activities. He said the government has presented a speculation based budget,
which would not create positive impact on the
masses.
(Chairman Association of Builders and
Developers of Pakistan- AB- Babar Chugtai)
The relaxation in tax limit from Rs 300,000 to
350,000 is a step in the right direction.
(President Khalid Mehmood, Sukkur
Chamber of Commerce and Industry- SCCI)
POST- BUDGET REACTION FROM STAKEHOLDERS