The budget for the financial year 2021-2022 will be presented in the National Assembly today and important information has begun to emerge.
The federal development budget for the next financial year is proposed to be 38% higher than the current financial year, Rs 100 billion is proposed to be spent on power transmission projects and Rs 84.50 billion is to be spent on Diamer-Bhasha, Dasu and Mohmand dams.
In addition, Rs 25 billion is proposed to be spent on K4, Nai Gaj Dam, Raini Canal and small dams in Sindh.
Proposal To Spend Rs 244 Billion On Motorways, Airports And Railway Projects
In the new financial year, it is proposed to spend Rs 244 billion on motorways, highways, airports and railway projects, Rs 13 billion for Sukkur-Hyderabad Motorway and Khyber Pass Economic Corridor project, to build 3261 km of new roads across the country. It is proposed to allocate Rs. 4.60 billion for Sukkur-Hyderabad Motorway in the development budget.
In the new financial year, it is proposed to allocate Rs. 3.55 billion for the projects of the Aviation Division. It is proposed to set aside Rs. 46 billion for the development projects of the Cabinet Division.
The Ministry of Climate Change has proposed to allocate Rs. 14.32 billion for the development projects. While Rs 9.70 billion has been proposed for federal education.
Rs 123 billion for development projects of the Ministry of Finance, Rs 42.45 billion for development projects of the Higher Education Commission, Rs 24.21 billion for the Ministry of Housing development projects, in the next financial year, Rs 21 billion for admission projects and Rs. 4.46 billion for maritime projects
Rs. 4.46 billion for maritime projects, Rs. 12 billion for national food security projects, Rs. 21.72 billion for Ministry of Health projects, for railway projects in the next financial year.
In addition, it is proposed to allocate Rs 103 billion for water projects, Rs 113.75 billion for NHA projects, Rs 69 billion for NTDC and PEPCO power projects and Rs 1.61 billion for Commerce Division.
The Development Budget Of The Defense Division Is proposed To Be Rs 1.97 Billion
It is proposed to allocate Rs. 45 crore for the Communication Division. The development budget of the Defense Division is proposed to be Rs. 1.97 billion for the next financial year. The development budget of the Defense Production Division is proposed to be Rs. 1.74 billion. It is proposed to allocate Rs. 80 crore, Rs. 279.2 million for Human Rights Division and Rs. 2.91 billion for the development budget of the Ministry of Industries and Production.
The development budget of the Ministry of Information is proposed to be Rs 1.89 billion, Rs 9.36 billion for IT and Telecom Division, Rs 3.73 billion for Inter-Provincial Coordination and Rs 69.95 billion for Kashmir and Gilgit-Baltistan Division.
Besides, it is proposed to allocate Rs 6.2 billion for the Ministry of Law and Justice and Rs 489.3 million for the development budget of the Narcotics Control Division.
The government Is Focusing On Reducing The Prices Of Essential Commodities
Federal Minister for Economic Affairs Omar Ayub has said that the government is focusing on reducing the prices of essential commodities and people would see improvement in the coming days.
Talking to a private news channel, Omar Ayub said that government and IMF’s perspective for improving the economy is different, no more burden can be placed on the economy and the people.
He said that he hoped that Shaukat Tarin would successfully complete the talks with the IMF.
Federal Minister for Information and Broadcasting Fawad Chaudhry has said that the salaried class will get big relief in the upcoming budget.
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Economic Survey: Inflation Decreased Significantly Compared To Last Year
Amid higher commodity prices, the Economic Survey for the year 2020-2021 states that the July-April Consumer Price Index (CPI) recorded inflation at 8.6 per cent against 11.2 per cent in the same period last year.
According to the details, non-perishable food items contributed to the rise in food and non-alcoholic beverages, which increased by 16% compared to 12.4% in the same period last year.
The highest pressure on prices of non-perishable food items came from the poultry group (chicken, eggs), followed by commodities (wheat, flour, edibles).
Wheat prices rose 24% in April 2021 compared to April 2020 due to supply disruptions, while they fell 9% in March 2021 due to the government’s efforts to ensure uninterrupted supply.
One of the initiatives was the timely release of wheat by procurement agencies in the provinces and its supply through utility stores, fair price shops.
Prices of edible oil, palm oil and soybeans have continued to rise in global markets since June 2020, amid a sharp contraction in global inventory levels due to weather-related concerns in large production areas.
Prices of housing, water, electricity, gas and other fuels rose 5.7 per cent during July-April from 7.1 per cent in the same period last year.
In the first quarter of FY21, the consumer price index was down 8.85 per cent from 10.08 per cent a year earlier, but food prices remained high.
The second quarter of FY21 saw a major stimulus in the Consumer Price Index (CPI), which was due to price differences between the provinces.
The uninterrupted supply of food items by the government in the third quarter of FY21 helped keep inflation at 7.8 per cent against 12.38 per cent in the same period last year.
However, due to the economic recovery, prices of restaurants, hotels, clothing, footwear, housing, water, electricity, gas and other fuels remained relatively high.
Fiscal Deficit Projected At 7% Amid Lower Expenditures, Rise In Revenue
The Finance Ministry has estimated a 7 per cent fiscal deficit for the outgoing fiscal year, despite the reduction in the expenditures and increase in revenues.
According to the Economic Survey of Pakistan released on Thursday, the fiscal deficit has been estimated at 7 per cent of GDP during the outgoing fiscal year 2020/21, compared with 8.1 per cent in the preceding fiscal year.
The ministry estimated the expenditures to be around 22.9 per cent of GDP in the outgoing fiscal year, compared with 23.2 per cent of GDP in the preceding fiscal year.