Budget 2021-22 Updates: Latest News Of Budget 2021 Pakistan

Arhama AltafWeb Editor

11th Jun, 2021. 01:09 pm
Budget 2021

The budget for the financial year 2022-2021 has been presented in the National Assembly.

The total outlay of the budget for the year 2021-22 is Rs8.487 trillion, presented by the Federal Minister of Finance Shaukat Tarin in the National Assembly.

In the federal cabinet meeting, it was approved that Capital Gains Tax (CGT) will decrease to 12.5 per cent.

Rs900 billion is being set aside 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.

Reduction in capital gains tax to attract foreign investment

The Federal Budget FY22 has proposed a reduction in the capital gains tax (CGT) rate on the disposal of shares to 12.5 per cent from the existing 15 per cent.

Govt proposes tax on non-filer power consumers

The government has announced imposition of tax on the domestic electricity consumers who are not on the Active Taxpayers List (ATL).

Tax-free Border Sustenance Markets proposed

The federal government has proposed the establishment of Border Sustenance Markets to mitigate the problems being faced by the people residing in the border areas due to fencing and counter-smuggling measures.

No excise duty on cars up to 850cc, sales tax reduced

The government in the Federal Budget 2021/22 announced to abolish the federal excise duty (FED) and reduction in the sales tax on the locally-manufactured small cars to ease prices in the domestic market.

Govt abolishes withholding tax from banking transactions

The government has abolished the withholding tax on cash withdrawal from the banking system and non-cash banking transfers to provide relief to the general public.

Govt announces Rs8.487 trillion outlay; sets GDP growth target at 4.8%

The government on Friday presented the Federal Budget 2021-22 with an outlay of Rs8.487 trillion on the hope of economic revival, development and prosperity.

Budget 2021-22: HEC to get Rs42.45 billion

The federal government has assigned Rs42, 450 million for the Higher Education Commission (HEC) for the Budget 2021-22 under the Public Sector Development Programme (PSDP).

Total Expenditure

Tarin’s announced expenditure was almost 19 per cent higher than last year’s budgeted expenditure of Rs 7,136 billion. The total size of the budget or the total expenditure budget for the next year stood at Rs8,487 billion.

Budget 2021-22 – Miscellaneous Points 

  1. Rs260 billion for Ehsaas Program
  2. Tax collection target set at Rs5829 billion
  3. The remittances with the 25% increase, reached $29 bn in FY2020
  4. The annual development program is proposed at Rs9,000 billion
  5. Rs2,135 billion proposed for public sector development program
  6. Rs57 billion have been fixed for the first phase of the Dasu Hyder Project
  7. Rs23 billion reserved for Diamir Bhasha Dam
  8. Rs6 billion earmarked for Mohmand Dam and Rs 14 billion have been proposed for Neelam Jhelum Project
  9. Rs12 billion reserved for the business sector
  10. No New Taxes on Wages
  11. Value Added Tax on Local cars removes; Sales Tax on local cars brought to 12.5% from 17%
  12. Custom Duty on Electric Vehicles reduced for a year
  13. Capital Gains Tax reduced from 15% to 12.5%
  14. Current Withholding Tax on Mobile Phones reduced from 12.5% to 10%
  15. Exclusive Technology Zones to be created around the country
  16. 10% increase in Pensions
  17. 10% Ad hoc relief to federal government employees

Budget Summary (Amounts Reserved)

  • Interest on Loan: Rs. 3060 Bn
  • Defence Budget:  Rs. 1370 bn
  • Fiscal Deficit Target: 6.3%
  • Growth Target: 4.8%
  • Diamir Basha Dam: Rs. 23 Bn
  • ML One Project: $9.3 Bn
  • Covid Emergency Relief Fund: Rs. 100 Bn
  • Karachi Transformation Plan: Rs. 739 Bn
  • Pension Estimate: Rs. 480 Bn
  • Daso Hydropower Project: Rs. 8.5 Bn
  • Neelum Jhelum Power Project: Rs 14 Bn
  • Provincial Grants Estimate: Rs. 1168 Bn
  • 2022 Census: Rs 22 Bn
  • Coronavirus Vaccine Procurement: $1.1 Bn
  • Subsidy: Rs. 682 bN

Tax To Be Reduced On Vehicles Smaller Than 850 Cc

In the federal budget 2021-22, being presented by Finance Minister Shaukat Tarin in the National Assembly (NA) today, it is expected that small cars and motorcycles will become cheaper.

According to sources, the budget 2021-22 will propose to reduce taxes on vehicles smaller than 850 cc.

A proposal to reduce sales tax, excise duty and additional customs duty on small vehicles are also under consideration, sources said.

In addition, a plan may be given to reduce the tax on various brands of new motorcycles and on new models of tractors.

Finance Minister Shaukat Tarin Presenting Third Federal Budget

The Pakistan Tehreek-e-Insaf (PTI) government begins presenting the federal budget 2021-22 with a total outlay of Rs7.​136 trillion, a little expansionary to get economic recovery.

Prime Minister Imran Khan, federal ministers and PTI members are present in the National Assembly session.

As soon as the budget speech of the Fiance Minister commenced, the House erupted with the noisy response from the opposition benches.

Budget Speech

Finance Minister Shaukat Tarin said that the volume of the federal budget has been kept at Rs 8,487 billion.

Finance Minister Shaukat Tarin said that it is an honour for him to present the third budget of the PTI government.

“We went bankrupt because of the debts, we inherited a deficit of $20 billion, interest rates were kept low and loans were taken from commercial banks,” he added.

Delivering a budget speech, the Federal Minister said that the interest rate was artificially kept low and all the loans were taken from the State Bank of Pakistan (SBP) which created a severe imbalance in the financial volume, the volume of loans from the SBP reached a dangerous level of Rs. 70 trillion.

Shaukat Tarin said that there has been a remarkable increase of a staggering 18 per cent in tax collection, due to the extraordinary performance of the economy this year, the average limit of taxes has crossed Rs 4,000 billion.

Housing and Construction

Shaukat Tareen said that at present there is a shortage of at least 10 million residential houses in Pakistan, adding that the Prime Minister’s Housing and Construction Package has boosted many economic activities in the sector and industries associated with the sector.

The Finance Minister said that the government is taking the following steps for the promotion of this program, in this regard a Naya Pakistan Housing Authority has been set up to coordinate policymaking and its implementation.

The Finance Minister said that a tax rebate package for housing schemes has been specially clarified under this initiative, besides the government is giving a subsidy of Rs. 300,000 to help low-income people build houses.

He said that mortgage financing has been started for the first time in Pakistan.

Finance Minister Shaukat Tarin said that the volume of the federal budget has been kept at Rs 8,487 billion.

Finance Minister Shaukat Tarin said that it is an honour for him to present the third budget of the PTI government.

“We went bankrupt because of the debts, we inherited a deficit of $20 billion, interest rates were kept low and loans were taken from commercial banks,” he added.

Delivering a budget speech, the Federal Minister said that the interest rate was artificially kept low and all the loans were taken from the SBP which created a severe imbalance in the financial volume, the volume of loans from the SBP reached a dangerous level of Rs. 70 trillion.

Fawad Chaudhry Seeks Opposition’s Suggestions For Improvement

Minister for Information and Broadcasting Fawad Chaudhry has on Friday seeks suggestions from the opposition parties on Budget 2021-22, set to be presented in the National Assembly today.

“Opposition should read the budget and give their suggestions for improvement,” Fawad said adding that if the government’s method for increasing exports was not good enough then the opposition should make suggestions in this regard.

He said that a debate on budget would continue for 10 days. “Anyone could create a ruckus during the process but we want to engage them in a serious debate over the matter,” Chaudhry added.

He said that the government wants to give voting rights to the overseas Pakistanis, however, the opposition parties are opposing it.

Opposition Plans Strong Protest During Session

The Opposition held a meeting of its parliamentary members under the chairmanship of PML-N President Shahbaz Sharif.

Sources said important decisions related to the budget have been taken in the meeting.

The meeting decided to take on the government with challenging its quest of presenting the third budget with a protest during the session.

On the other hand, Chairman Pakistan Peoples Party (PPP) Bilawal Bhutto Zardari has also directed the party lawmakers to give tough time to the government in the budget session.

PM Imran Reaches Parliament To Attend Session

After the meeting of the Federal Cabinet, Prime Minister Imran Khan reached the Parliament House to attend the budget session.

On this occasion, the journalist asked the Prime Minister, Khan Sahib, what will be the people-friendly budget? On this, Prime Minister Imran Khan says everyone will be happy with the budget.

It should be noted that the federal budget for the next financial year is being presented today.

Federal Cabinet Approves 10% Hike In Salaries, Pensions

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.

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 budget 2021-22 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%.

Budget 2021-22: How Much Relief Will Govt Provide To People?

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.

Budget 2021-22: Documents Transported To Parliament House

The documents have been transported to the parliament house and they will be handed over to the Member National Assembly at the beginning of the session.

Budget 2021 Documents Transported

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