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Newly Announced Pakistan Budget 2010-2011
(Whole Story):
Budget in Brief 2010-2011
(A PDF
file Document)
Federal Budget Speech 2010-2011
(A PDF
file Document)
Amendment in the First Schedule (Tariff) to the Customs Act
Highlights of Pakistan Budget
2010-2011
SALIENT FEATURES
Total outlay of the national budget
for new fiscal year 2010-11, presented at the National Assembly here
Saturday is to the tune of Rs 2764 billion, 12.3 percent higher than
the size of the budget estimates for outgoing fiscal
2009-10.Following are cardinal features of the national budget for
FY 2010-11:
· The total outlay of budget 2010-11 is Rs 2764 billion. The size is
12.3 per higher than the size of budget estimates 2009-10.
· The resource availability during 2010-11 has been estimated at Rs
2598 billion against Rs 2299 billion in the budget estimates of the
outgoing fiscal year.
· Net revenue receipts for 2010-11 have been estimated at Rs 1377
billion indicating an increase of 1.9 percent over the budget
estimates for current fiscal year 2009-10.
· The provincial share in federal revenue receipts is estimated at
Rs 1034 billion during 2010-11 which is 57.9 per cent higher than
the budget estimates for 2009-10.
· The capital receipts (net) for 2010-11 have been estimated at Rs
325 billion against the budget estimates of Rs 191 billion in
2009-10 indicating an increase of 70.2 per cent.
· The external receipts in 2010-11 are estimated at Rs 387 billion.
This shows a decrease of 24 per cent over the budget estimates for
2009-10.
· The overall expenditure during 2010-11 has been estimated at Rs
2764 billion of which the current expenditure is Rs 1998 billion and
development expenditure at Rs 787 billion. Current expenditure shows
decline of less than one per cent over the revised estimates of
2009-10, while development expenditure will increase by 25.3 per
cent in 2010-11 over the revised estimates of 2009-10.
· The share of current expenditure in total budgetary outlay for
2010-11 is 72 per cent as compared to 78 per cent in revised
estimates for 2009-10.
· The expenditure on General Public Services (inclusive of debt
servicing transfer payments and superannuation allowance) is
estimated at Rs 1388 billion which is 69.5 per cent of the current
expenditure.
· The size of Public Sector Development Programme (PSDP) for 2010-11
is Rs 663 billion. While for Other Development Expenditure an amount
of Rs 124 billion has been allocated. The PSDP shows an increase of
30 per cent over the revised estimates.
· The provinces have been allocated an amount of Rs 373 billion for
budget estimates 2010-11 in their PSDP as against Rs 300 billion in
2009-10.
· An amount of Rs 10 billion has been allocation to Earthquake
Reconstruction and Rehabilitation Authority (ERA) in the PSDP
2010-11.
PSDP 2010-11
Following are the highlights of Public Sector Development Programme
(PSDP) 2010-11, released here on Saturday: Total amount of Rs. 663
billion has been allocated in PSDP-2010-11 for various ongoing and
new schemes. Out of total PSDP, the federal share is Rs. 280
billion, provincial share Rs.373 billion where as Rs.10 billion
would be spent for Reconstruction and Rehabilitation of
Earthquake-hit areas.
Following are the main allocations:
Rs.28423.8 million for Water and Power Division (Water Sector)
Rs.15227.5 million for Pakistan Atomic Energy Commission.
Rs.14565.7 million for Finance Division.
Rs.13629.6 million for Railways Division.
Rs.9395.7 million for Planning and Development Division.
Rs.15762.5 million for Higher Education Commission.
Rs.16944.5 million for Health Division.
Rs.10873.7 million for Food and Agriculture Division.
Rs.3220.1 million for Industries and Proudction division.
Rs.5140.9 million for Education Division.
Rs.5584 million for Interior Division.
Rs.3887.1 million for Defence Division.
Rs.3618.3 million for Housing and Works Division.
Rs.3618.7 million for Cabinet Division.
Rs.4115.5 million for Population Welfare Division. Rs.1646.2
million for Science and Technological research Division.
Rs.885.6 million for Livestock and Dairy Development Division.
Rs.1000 million for Law and Justice Division.
Rs.1000 million for Environment Division.
Rs.1000 million for Special Initiatives Division.
Rs.1234.7 million for Revenue Division.
Rs.623.4 million for Petroleum and Natural Resources Division.
Rs.718.3 million for Information Technology and Telecom Division.
Rs.1229.7 million for Defence Production Division.
Rs.474.1 million for Commerce Division.
Rs.149.1 million for Communication Division (other than NHA).
Rs.518.6 million for Ports and Shipping Division.
Rs.246.9 million for Pakistan Nuclear Regulatory Authority.
Rs.152.9 million for Women Development Division. Rs.107.6
million for Social Welfare and Special Education Division.
Rs.65.8 million for Labour and Manpower Division. Rs.82.3
million for Local government and Rural Development Division.
Rs.125 million for Tourism Division.
Rs.140.8 million for ministry of Foreign Affairs.
Rs.549.8 million for Narcotics Control division.
Rs.114.4 million for Establishment Division.
Rs.353.9 million for Culture Division.
Rs.229.6 million for Sports Division.
Rs.74.5 for Youth Affairs Division.
Rs.509.9 million for Information and Broadcasting Division.
Rs.164.6 million for Textile Industry Division.
Rs.82.3 million for Statistics Division.
Rs.81.1 million for Ministry of Postal Services.
Rs.15 million for Economic Affairs Division.
Rs.12029.7 million for WAPDA (Water)
Rs. 44637 million for National Highway Authority Rs.10523.5
million for Azad Jammu and Kashmir (Block and other projects)
Rs.6584.9 million for Gilgit-Baltistan (Block and other projects)
Rs.8642.6 million for FATA.
Rs. 5000 million for Peoples Works Programme-I
Rs.25000 million for Peoples Works Programme-II
TAX MEASURES
Following are the highlights of tax measures announced by the
government in the National Budget for the financial year 2010-11. ·
Existing system of General Sales Tax would be reformed to eliminate
multiple tax rates and replace it with a single lower rate of 15%. ·
The reformed GST will not apply on health, education and food items
consumed by the poor. The GST will not apply to turnover less than
Rs. 7.5 million per year whereas the current threshold is Rs 5
million per year and would be automated thus reducing possibilities
of corruption and refund delay.
· It will broaden the tax base instead of burdening the existing tax
payer.
· The proposed GST reform is expected to be in place by October 1,
2010 in consultation with all the provinces and other stakeholders.
· As an interim measure the GST rates are proposed to be raised by 1
percentage point. Once the reform GST is in place the proposed
single lower rate of 15 % will become effective.
· Current 1% Special Excise Duty levied on most items of imports and
local manufacture has been abolished.
· Federal Excise Duty incidence on all categories of cigarettes has
been enhanced and levy FED at Rs. 1 per filter rod of cigarettes has
been proposed.
· The rate of FED on natural gas has been increased to Rs. 10 per
MMBTU, while intensive appliances, levy of FED @ 10% ad valorem on
air conditioners and deep freezers is proposed.
· On income tax side, exemption limit for the salaried taxpayers has
been enhanced from Rs. 200,000 to Rs.300,000, benefitting
approximately 430,000 taxpayers.
· Exemption limit for non-salary income is also proposed to be
raised from Rs. 100,000 to Rs. 300,000 per year benefitting
approximately 350,000 taxpayers.
· Rate of income tax collected along with monthly electricity bill
from industrial and commercial consumers is proposed to be reduced
from 10% to 5%. This will provide a relief of Rs.4.5 billion to the
66,000 taxpayers
· Under the Prime Ministers Fiscal Relief Package to Khyber
Pakhtunkhwa, Federally Adminstered Tribal Areas (FATA) &
Provincially Adminstered Tribal Areas (PATA) additional tax relief
of about Rs.2 Billion have been provided to benefit 300,000
taxpayers of the province.
· Instead of monthly withholding tax statements, now only quarterly
withholding statement will be required to be e-filed.
· Taxation on interest free / concessionary interest loans provided
by an employer is proposed to be waived.
· Rate of final withholding tax on non-specified payments to
nonresidents is to be reduced from 30% to 20%.
· Tax free payments to non-residents on profits on debt will be
allowed 10% tax credit for balancing, modernization and replacement
to all companies.
· A 5% tax credit is proposed to be allowed to a company in the tax
year of its enlistment.
· 10% withholding tax has been announced as final charge on profit
on debt (in debt instruments) and also for the investment in
government securities (treasury bills and PIBs) to allow hassle free
compliance by non-residents.
· It has been proposed that income tax be raised for the Association
of Persons (AOPs) at a flat rate of 25% against the existing
progressive rate averaging up to 20%.
· Tax on short-term Capital Gains on stocks/shares will be charged
at 10% where shares are held for a period less than six months and
at 7.5% where they are held for more than six months and less than
12 months. However, stocks held for over one year will not be
subject to CGT.
· The withholding tax rate payable by commercial importers is
proposed to be increased from 4% to 5%.
· A withholding tax on banking transactions including withdrawal
through demand draft, pay order, RTCs, CDRs etc. will be charged at
0.3% where such transaction exceeds Rs.25000 in a day.
· Turnover tax on loss making companies and AOPs is proposed to be
increased from 0.5% to 1%.
· Withholding tax on domestic air travel is proposed to be charged
at 5% on gross value of the ticket.
SALERIES INCREASE
An unprecedented increase of 50 per cent in salaries of government
employees and 15 to 20 per cent raise in pension is the hallmark of
the Federal Budget 2010-11. The budget also envisaged some new tax
exemptions on food items besides providing relief in health and
education sectors. The budget, presented in the National Assembly by
Federal Finance Minister Dr. Abdul Hafeez Shaikh had a total outlay
of Rs 3.259 trilliona jump of 10.7 per cent over the last fiscal
year. It offered scores of incentives to the working class at a time
when the world was constantly in the grip of a sweeping recession.
A sizeable 50 per cent adhoc increase in salaries and 15 to 20 per
cent raise in pension of government employees were among a host of
people-friendly features of the third budget in row prepared by the
PPP-led coalition government.
The budget envisaged employment opportunities for the youth and
income-generating measures for laborers, workers and poor segments
of the society.
Senator Hafeez Sheikh, who was inducted into the Federal Cabinet
just hours before tabling the budget in the lower house of the
Parliament, said the total budget deficit of an estimated Rs. 685
billion would be met through internal and external resources.
The total size of the deficit is 4% of the GDP, the Minister said,
adding that Rs. 1033 billion would be transferred by the federation
to provinces under the recently-adopted National Finance Commission
(NFC) award.
In the current year, the provinces had been given an amount of Rs.
655 billion under the same head, Hafeez Sheikh said, adding that
according to the 7th NFC Award, the provinces would be paid their
due share on quarterly basis, which would be released by the Federal
Government automatically as per schedule.
No big wig will have to visit finance department for the release of
provincial share as now it will be released automatically, he said.
He said the present government, in its efforts to revive the
economy, has to strictly follow the policy of belt-tightening in its
expenditures.
Now, he added, the current expenditures of the government had been
frozen, with the exception of salaries, to the level of outgoing
financial year as a major austerity step.
The Minister said that the recommendations formulated by the Pay and
Pension Commission would be implemented during the next three years.
APP
Read Federal Budget in Urdu 2010-2011
Salient Features of Budget 2010-2011 IN
URDU
Posted by Mohammad Rashid
on Jun 05, 2010
(Source: www.pinditube.com)
Hafeez Sheikh to present
federal budget today Updated at: 1353 PST, Saturday,
June 05, 2010 (Source: Geo TV News web site)
 ISLAMABAD:
The next budget (2010-11) with total volume of Rs. 3300 billion will
unravel new taxes worth Rs. 40 to 70 billion, Geo News reported
Saturday.
The budget is expected to contain tough taxation measures, including
hiking the standard rate of the GST by one per cent to 17 per cent
from the existing 16 per cent, abolishing sales tax and income
exemptions and increasing excise duty on cigarettes, air
conditioners, refrigerators and other items.
Finance Adviser Senator Dr Abdul Hafeez Sheikh will take oath as
finance minister to table the budget today.
The salaries of the government employees will be mounted 20 to 35
percent in the budget for next year. However, defense personnel and
paramilitary forces will have no pay raise.
The rate of withholding tax on the imports will be set at 4 to 5
percent in the budget with development budget expected at Rs. 663
billion; of it, the provinces would be apportioned Rs. 373 billion and
federation to have Rs. 290 billion.
The provinces would be allocated Rs. 1036 billion in revenues with
fiscal budget deficit expected to stand at Rs. 680 billion.
Rs442 billion has been set aside for defense. Income tax exemption
for salaried class has been augmented from 2 to 3 lakh per annum.
The budget for next fiscal year will have Rs. 672 billion for payment
of debts and markups and Rs. 221 billion to run the federal
departments.
Expectation from coming Budget 2010-2011
Pakistan Government will soon make public its new budget for the
next financial year. At this moment we are sitting with our fingers
crossed since the budget generally comes to us as a shocker with
added taxes and less benefits to the masses. This time we anticipate
nothing much from the current government of PPP.
We will inform this post as soon as we
get the details. Another interesting thing will be the
Pakistan Defense Budget 2010-11 as that takes best part of
our budgetary allocation.
In the mean time you can place
anything here in the comments that you think will be part of the
budget.
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