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Ishaq Dar Presenting Federal Budget Speech 2015-16
Budget 2015-16 Live Updates in English
Budget Speech Start at Friday 5th June – 05:15 pm
Budget 2015-16 Live Updates in English
Budget Speech Start at Friday 5th June – 05:15 pm
- Rs4089 billion have been allocated for the current budget. Remittances have constantly increased while Rs3115 billion have been expected to come in remittances this year.
- Rs348.926 million will be spent on new development schemes and completion of ongoing projects in the petroleum sector.
- Dar says these loans will be given out on low markups, and will significantly reduce costs for farmers who have to run tubewells on diesel-powered generators.
- Telecenters will be established with 12 billion rupees.
- PM had announced to improve the educational budget to 4% by the end of tenure. We are still committed to our promise. Provincial government will have to raise the education budget to 3.2% of the GDP and take it to 4% by the end of the tenure.
- 3.5 metric tons will be extracted from Thar every year, a solar energy park in Bahwalpur, second phase of Karakoram Highway and upgradation of Gwadar Package and 200 MW power project in Jhampir, power projects in Sahiwal and others are part of the CPEC projects.
- Dar announces Rs10bn for Islamabad and DI Khan route of the China-Pak Economic Corridor (CPEC), and Rs19.5bn for the Raikot-Islamabad stretch of the CPEC.
- Dar says Rs781bn have been allocated for expenditure on defence.
- Government wants to target 7% GDP growth in 2017, says Dar.
- The tax collection target as a percentage of GDP to be increased to 13.5pc by the end of fiscal year 2015-16, says Dar.
- Ishaq Dar said debt management has remained our top priority and public debt will be reduced to 61.89% of the GDP growth and will be brought below 60% during the next 3 years.
- Bait-ul-Maal budget is being increased to 4 billion rupees, says Dar.
- Scholarships worth Rs. 25 million were provided under Prime Minister’s National Program for Information Scholarship. This project will continue in the future.
- Ishaq Dar lays out reasons for missing the growth target in 2014-15— which include floods in September 2014 and political protests from August to December 2014. The minister says fiscal deficit target of 5% for the year 2014-15 will be met by June 30, 2015.
- Import in machinery increased by 10.3%, interest rate has been reduced to 7%, growth rate previous year was 4.24%, collective deficit is Rs 1328 billion, says Ishaq Dar.
- Tax on imported mobile phones upped
- Sales tax applicable on various categories of imported mobile phones is proposed to be increased from Rs150, Rs250 and Rs500 to Rs300, Rs500 and Rs1,000, respectively. On the implementation of new rates, regulatory duty imposed on import of mobile phones will be withdrawn.
- 15% tax to be implemented on the use of scientific tools.
- Regulatory duty on mobile phones to be lifted.
- Sales tax on agricultural machines to be reduced from 17% to 7%.
- Loans worth 1 million forgiven to the widows of the martyrs.
- Khyber Pakhtunkhawa Package
- All new units being set up in KP to be given exemption in taxes.
- KP will be given priority in tax refunds due to the problems the province has been facing.
- KP allowed to do business with Afghanistan in Pakistani rupee.
- Setting up industry in KP also exempted of turnover taxes.
- Tax exemption for 5 years for all those setting up industry in Khyber Pakhtunkhawa (KP).
- Pension increased by 7.5%
- Pension has been increased by 7.5%.
- Minimum wage increased to Rs13,000
- Minimum wage has been increased from Rs12,000 to Rs13,000.
- Further, federal excise duty on cigarettes has been raised by 5%.
- Meanwhile, FBR’s authority to give tax exemption has been revoked.
- Salary tax rate reduced
- For salaried individuals making between Rs400,000 to Rs500,000 annually, tax rate has been reduced from 5% to 2%.
- Additional tax on high electricity bills
- An additional 10% tax has been imposed on electricity bills above Rs75,000 per month.
- Forex reserves to stand at $19 billion by end of year
- “Forex reserves will be $19 billion by the end of this year,” the finance minister said.
- Rs20 billion allocated for PM’s special schemes
- Rs20 billion allocated for special schemes launched by the prime minister. These include provision of laptops, business loans and interest-free loans, among others.
- Markup rate of Business Youth Loan Scheme reduced to 6%
- Markup rate of Business Youth Loan Scheme has been reduced from 8% to 6%.
- Rs600 billion allocated for farmers
- “We are working for the uplift of the agriculture sector and for this purpose a Credit Guarantee Scheme will be initiated,” Dar said.
- “Moreover, crop loan insurance and livestock insurance schemes will be launched.”
- Dar announced for this purpose Rs600 billion have been allocated as compared to Rs500 billion in the previous year.
- Fiscal deficit to be contained at 5%
- The fiscal deficit is said to be restricted at 5%.
- Rs 20.88 billion allocated for health
- Rs 20.88 billion have been allocated for health.
- Rs71.5 billion allocated for education
- Rs71.5 billion have been allocated for higher education, 14% more than the previous year.
- Rs3 billion allocated for Ramzan package
- Further, Rs3 billion have been allocated for Ramzan package.
- Green Line Metro Bus for Karachi
- Dar announced Rs16 billion has been allocated for Green Line Metro Bus service for Karachi, to be completed by December 2016.
- Rs3.5 billion for security for CPEC route
- In the new budget, an allocation of Rs3.5 billion is given to Ministry of Interior for raising 28 Civil Armed Forces Wings for ensuring security for CPEC route and Chinese working in Pakistan.
- Rs78 billion for Pakistan Railways
- A sum of Rs78 billion has also been given to Pakistan Railways.
- An amount of Rs23.2 billion has been given to Kashmir Affairs and Gilgit Baltistan and Rs19.7 billion to State and Frontier Region’s Division.
- The government’s planning to implement CPEC projects seems haphazard, as the allocations for CPEC were changed for the third time.
- Rs100 billion for TDPs
- Government proposes Rs100 billion allocation out of the development budget for special development programme for Temporarily Displaced Persons and Security Enhancement. Pakistan has the capacity to connect the entire region. Therefore, we have allocated Rs. 185 billion for highways and roads construction with an increase of 65%. Lahore-Karachi Motorway is government s top priority.
- PAEC budget reduced
- Pakistan Atomic Energy Commission (PAEC) budget has also been reduced from Rs59.3 billion to Rs30.4 billion for the new fiscal year.
- Rs31 billion allocated on water management
- “We are investing a sum of Rs31 billion on water management,” Dar added.
- Rs112.28 billion allocated for WAPDA
- Rs112.28 billion have been allocated for the Water and Power Development Authority for fiscal year 2015-16.
- Rs25 million have been allocated for scholarships
- Further, Dar announced Rs25 million have been allocated for scholarships.
- Rs102 billion allocated for Benazir Income Support Programme
- ‘Electricity growth of 19,600MW expected by 2017′
- Dar proves case for strong economic growth
- For shares sold after two years, the rate of tax would be 7.5%. Previously, shares sold after a holding period of two years were exempted from tax.
- For shares sold between 1-2 years, the rate would be 12.5% — increased from 10%. While, for shares sold within a year, the rate would be 15%.
- Per Capital income has gone up to USD 1512. Japan Internal Trade Organization has declared Pakistan as favorite country for investment. Pakistan’s index was -34 in 2013, it has reached +2 now.Moody s first gave Pakistan the stable status and now has made it Positive, Finance minister told assembly. “According to an analysis by Goldman Sachs, Pakistan, currently ranks 44th in world economies and will become the 18th largest economy by 2050,” Dar added.
- Dar says the improvement in fiscal deficit is the result of improved tax collection that resulted in higher revenue in addition to disciplined expenditure.
- Capital Gain Tax increased by 2.5%.
- 3%taxes imposed on non-filer businessmen.
- 0.1% advance tax to be imposed on shopkeepers
- Rs700 billion allocated for Public Sector Development Programme
- Amid last-minute changes to accommodate the prime minister, the federal government has allocated Rs700 billion for Public Sector Development Programme for the new fiscal year –up by 29% or Rs158 billion over outgoing fiscal year’s revised budget.
- Finance Minister Ishaq Dar presents federal budget for the year 2015-16.
- “Government had vowed to wrong economic pundits and our economic ship is safe now,” he said.
- “We have to save Pakistan from defaulting,” the finance minister said, adding the country has to achieve macro-economic stability.
- “We will achieve the target of 5% by June 30, 2015,” he upheld.
- “We’ve put a dwindling economy on the path of progress,” Dar further said.
- “GDP remained at 4.24 % and depicts persistent growth,” he added.
- Further, the finance minister said, “Prices of commodities and oil were controlled.”
- “Unusual and prolonged winter season resulted in the damage of rice production and large-scale manufacturing and production saw a decline,” he added.
- PM Nawaz arrives at Parliament
- Prime Minister Nawaz Sharif has arrived at the Parliament.
- Budget to be announced shortly.