Islamabad: Finance Minister Muhammad Aurangzeb presented the first budget of the newly government on Wednesday. During budget 2024-2025 announcement in the National Assembly (NA) slogans were chanted by the opposition.
Government presented a budget with a total outlay of Rs18.9 trillion which aims for 3.6% of GDP growth.
The federal budget sets a target to increase the tax-to-GDP ratio by 10.4 pc.
These steps are set to generate a revenue of more than Rs2.2 trillion.
A tax revenue target has been set to Rs13 trillion and 3.6% of GDP growth.
Moreover, the budget has been designed in a way to meet IMF requirement.
The current expenditure is set to Rs17.203 trillion at 28% increase.
Total revenue for financial year is set to Rs17.815 trillion with net revenue of 10.377 trillion after provincial transfer.
Tax collection target has been set to Rs2.97 trillion, a 38% increase from last year. A non-tax revenue goal of 3.5 trillion.
Federal PSDP allocation increased to 47.5% to Rs1.696 trillion and Provincial PSDP allocation to 34.4% to Rs2.09 trillion.
Public sector development program received Rs3.79 trillion.
Pakistanis earning less than 50,000 per month will not be taxed. 5% tax will be imposed on annual salary of 600,000 to 1.2 million. 15% tax on annual salary of 1.2-2.2 million. 25% tax on annual salary of 2.2-3.2 million. 30% tax on annual salary of 3.2-4.1 million and 35% tax on annual salary of less than 4.1 million.
Finance Minister also announces an increase in salaries of government employees. 25% increase for grade 1-16, 22% increase for grade 17-22 and 15% increase in pensions.
A budget of 79 billion has been allocated to IT sector, 5% to agricultural and 12 trillion to defence.
Minimum wages for private sector increase to Rs360. Rs1.5 trillion allocated to development project.
27% of funding has been increased for Benazir Income Support Program.
Budget also includes an increase in petroleum levies; Rs20 on petrol and Rs25 on superior kerosene oil and other fuels.