The federal government has announced the budget for the fiscal year 2024-25.
Finance Minister Muhammad Aurangzeb presented the Federal Budget in the Parliament House today for the fiscal year 2024-25. The total federal budget outlay is Rs 18.9 trillion.
- Budget outlay set at Rs. 18.88 trillion
- FBR tax collection target set at Rs. 12.97 trillion for FY25, +38% YoY
- Non-tax revenue set at Rs. 4,845 trillion for FY25
- Funds for Public Sector Development Program (PSDP) Rs. 1,500 billion for FY25
- Government employees’ pension set at Rs. 1,014 billion for FY25
- Subsidies budgeted to clock in at Rs. 1.363 trillion FY25
- Total grants to clock in at Rs. 1.777 trillion in FY25
- Budget deficit as percentage of GDP budgeted at 6.9 percent for FY25
- Non-Bank borrowing (NSSs and Others – Public Account set at Rs. 2.662 trillion
- Net External financing set at Rs. 666 billion
- Bank borrowing (T-Bills, PIBs, Sukuk) – Fed. Consolidated fund: Rs. 5.142 trillion
- Privatization proceeds set at Rs. 30 billion
- Current expenditure set at Rs. 17.2 trillion
- Interest payments proposed at Rs. 9.775 trillion
- Pension payouts: Rs. 1.014 trillion
- Defence Affairs & Services expenses set at Rs. 2.122 trillion
- Grants and Transfers to Provinces & Others will be Rs. 1.777 trillion
- Subsidies: Rs. 1.363 trillion
- Expenditure for running of Civil Govt.: Rs. 839 billion
- Provision for emergency and others: Rs. 313 billion
- Primary surplus budgeted to be 1 percent of GDP in FY25
- Federal Excise Duty on the cement sector increased by Rs. 1,000/ton for FY25
- Federal Revenue set at Rs. 10.377 trillion
- Total federal expenditure set at Rs. 18.87 trillion
- Capital Gains tax on securities would be 15 percent on filers irrespective of the holding period and 45 percent on non-filers.
- Exporters will now fall under the normal tax regime
- PDL maximum limit increased from Rs. 60 per liter to Rs. 80 per liter
- New sales withholding tax on copper, coal, paper and plastic scrap
- General Sales Tax (GST) increased on textile and leather products sold by Tier-1 retailers from 15% to 18%
- Withdrawal of exemptions given to Ex-FATA/PATA
- Withdrawal of tax exemptions on imported hybrid cars
- An increase in the minimum wage from Rs. 32,000 to Rs. 36,000
- 5 percent FED on new plots and residential and commercial properties
- 15 percent tax rate on individuals who invest through mutual funds
- Sales tax on computers and laptops doubled from 5% to 10%
- Minimum value for sales tax on certain imported items, which is expected to address the issue of under-declaration by importers
- Sales tax on smartphone imports as well as IMEI registration is now 25 percent ad valorem (for smartphones valued above $500)
- Hiring freeze on new hirings for Basic Pay Scale (BPS) 1 to 16 positions
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No details are seen about EOBI pensionincrease
2.1 trillion rupees for Armed forces + 662 billion Rupees for military pensions?.. in dollar terms this is equivalent to 9 billion dollars.
A poor nation like ours is begging for IMF loans and we are spending more than 9 billion US dollars on Army?. This is unacceptable in my view.