The Federal Cabinet meeting, which took place under the chair of Prime Minister Khan, today has given approval for the presentation of Budget 2021-22 in the National Assembly (NA).
The Cabinet discussed the Budget 2021-22 proposals for the next fiscal year and approves the hike of pension and salaries by 10%.
Also, the meeting also approved the imposition of taxes on mobile phones.
— Prime Minister's Office, Pakistan (@PakPMO) June 11, 2021
Earlier on June 7, the government of Punjab had proposed a 15% rise in salaries and pensions in the budget of the province for the next fiscal year 2021-22.
However, other than an increase in salaries, the development outlay-Annual Development Plan (ADP)- for the province will be set at Rs480 billion for the next fiscal year.
A total of Rs265 billion would be earmarked for the ongoing projects while Rs130 billion would be set aside for new uplift schemes. A development budget of Rs62 billion is earmarked for Lahore uplift projects.
Government Presents GDP Growth Rate At 4.8%
The federal government has proposed Gross Domestic Product (GDP) growth rate at 4.8% for the upcoming Budget 2021-22 here on Friday (today).
According to the budgetary document available, the GDP growth rate has been set at 5% and for important crops, the growth rate has been forecast at 2.2%.
The growth rate for cotton has been proposed at 10% of the overall GDP projected by the federal government for the upcoming FY22, read the budget document.
For the industrial sector, the growth rate has been set at 6.5% and 6.2% has been estimated for the manufacturing sector.
The growth target for the large manufacturing sector has been proposed at 6%. However, for the construction sector, it has been jutted at 8.3%.
Shaukat Tarin To Present Budget 2021-22 In National Assembly Today
The budget for the financial year 2022-2021 will be presented in the National Assembly today.
The total volume of the budget for the year 2021-22 is likely to be more than Rs 8,000 billion, which will be presented by the Federal Minister of Finance Shaukat Tarin in the National Assembly.
Will there be an increase in the salaries of government employees or not? The final decision will be taken at a meeting of the federal cabinet before the budget is presented.
It is proposed to increase the salaries of government employees by 10 to 15 per cent.
900 billion is being allocated for the federal development budget and Rs. 1,330 billion for defence.
The target for tax collection in the new financial year will be Rs 5,705 billion, 480 billion in pensions, 530 billion in subsidies, 900 billion in development budget, 510 billion in civil government expenditure and 994 billion in grants.