Budget 2021-22: PTI Government Presenting Third Federal Budget – Watch LIVE

Aizbah KhanWeb Editor

11th Jun, 2021. 04:17 pm

The Pakistan Tehreek e Insaf (PTI) government is presenting the federal budget 2021-22 of about Rs 8,000 billion with a deficit of Rs 3,050 billion.

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

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

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.

Vehicles & Automobiles

  1. Value Added Tax on Local cars removes; Sales Tax on local cars brought to 12.5% from 17%
  2. Custom Duty on Electric Vehicles reduced for a year
  3. Capital Gains Tax reduced from 15% to 12.5%

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 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

 

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.

Cabinet Meeting On Budget

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.

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%.

Budget 2021-22: 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%.

Before the approval, the government presented an Rs8.5 trillion budget 2021-22 today.

The government aims at moving towards graduating from stabilization to growth trajectory by ensuring direct interventions for providing relief to 4 to 6 million poor people. The budget revolves around 3Ds on the expenditures front including debt servicing, defence and development.

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