Prime Minister Nawaz Sharif studies the Federal Budget 2014-15 proposal documents while Finance Minister Ishaq Dar speaks in National Assembly on Tuesday. – APP Photo
Prime Minister Nawaz Sharif studies the Federal Budget 2014-15 proposal documents while Finance Minister Ishaq Dar speaks in National Assembly on Tuesday. – APP Photo

The federal cabinet on Tuesday approved the federal budget for the year 2014-15, with a total outlay of Rs3.945 trillion, and a Public Sector Development Programme allocated at Rs525billion.

Finance Minister Ishaq Dar told parliament n his budget speech that he aimed to reduce the budget deficit to 4.9 per cent of economic output in the 2014-15 fiscal year from 5.8 per cent a year earlier.

Budget spending has been set at Rs3.8 trillion ($39.3 billion), while tax revenues that Pakistan would be able to collect in the next fiscal year are estimated at 3.94 trillion rupees.

With the budget, the government has introduced welfare schemes for farmers, homeless, the unemployed, businessmen and 10 per cent relief for government employees.

Dar also said Pakistan would invest at least Rs205 billion ($2.08 billion) in power projects in the next fiscal year as part of a plan to reform the struggling sector.

Spelling out the revenue generation plans of the government, the minister said the share of provincial governments in the taxes would be Rs 1.72 trillion against Rs 1.41 trillion last year. Net resources left with the federal government would be Rs 2.22 trillion against the revised estimate of Rs 2.18 trillion for last year.

He said the expenditure for the next fiscal year had been budgeted at Rs 3.937 trillion, 2 per cent higher than the previous year's, which was much lower than the inflation rate.

The minister said the budget deficit had been reduced to 4.9 per cent and estimated at Rs 1.71 trillion for the next fiscal year. By requiring surplus of Rs 183 billion last year, the government had projected an overall fiscal deficit of Rs 1.422 trillion for the next year, he added.

Dar also announced measures to simplify the existing tax regimes and remove inequities created by SROs-based concessions, which would be carried through a phased plan.

The finance minister said that, to ensure continued stability in the stock market, it was proposed that from July 1, 2014, the Capital Gains Tax (CGT) rate would be 12.5 per cent for securities held up to 12 months and 10 per cent for those held for 12 to 24 months.—Agencies

2014-06-03 19:47:56

Finance Minister delivers concluding remarks of budget speech, and ends with a couplet by Allama Iqbal.

2014-06-03 19:47:45

Dar quotes Mohammad Ali Jinnah's speech in Lahore on 30th October 1947:

"Do not be overwhelmed by the enormity of the task. There is many an example in history of young nations building themselves up by sheer determination and force of character. You are made of sterling material and are second to none. Why should you also not succeed like many other, like your own forefathers. You have only to develop the spirit of a Mujahid, You are a nation whose history is replete with people of wonderful grit, character, and heroism. Live up to your traditions and add to it another chapter of glory. "

2014-06-03 19:42:29

Minimum wage rate is being increased from Rs.10,000 to Rs.11,000.

2014-06-03 19:41:54

A 5% increase will be allowed in conveyance allowance to those employees working in Grade-1 to 15

2014-06-03 19:41:45

A 10% increase will be allowed to those employees in Grade-1 to 15 drawing fixed medical allowance of Rs.1000 per month;

2014-06-03 19:41:34

A 10% ad-hoc relief will be allowed to all federal government employees with effect from 1st July 2014;

2014-06-03 19:40:19

Imports previously exempt from customs duty will now be charged custom duty at 1%. This will not include socially sensitive items like petroleum products, fertilizers, and all food items.

2014-06-03 19:38:47

Maximum custom duty being brought down from 30% to 25%.

2014-06-03 19:37:53

Tax on tobacco to be increased according to details in Finance Bill.

2014-06-03 19:36:59

Tier-II: All remaining retailers will pay sales tax through their electricity bills. "Retailers having electricity bills of less than Rs.20,000 in a month shall be charged only 5% of the bill as sales tax on retail sales, while those with higher bills shall be charged 7.5% as sales tax on retail sales."

2014-06-03 19:36:13

Tier-1: retailers operating as part of national and international chain stores, or in air-conditioned shopping plazas; or having machines for credit or debit cards; or having monthly electricity bills in excess of Rs 50,000, will be required to pay sales tax in the normal regime.

2014-06-03 19:34:59

Finance minister announces reforms in sales tax regime for retailers.

2014-06-03 19:32:24

No new tax being imposed in case of sales tax and federal excise duty, announces Ishaq Dar.

2014-06-03 19:31:59

"The government has made a conscious policy decision to enhance the contribution of direct taxes, which are progressive taxes, and gradually reduce the burden of indirect taxes, which affect the common man," announces finance minister.

2014-06-03 19:31:27

Measure to broaden the tax net: Proposal to make obtaining of NTN a compulsory condition for seeking commercial/industrial electricity and gas connections.

2014-06-03 19:29:25

For corporations, alternate corporate tax at the rate of 17% is proposed to be imposed on accounting income.

2014-06-03 19:24:52

Proposal to reduce tax liability of disabled persons having income up to Rs.1 million by 50%.

2014-06-03 19:24:15

Reduction in rate of advance income tax on Shadi (wedding) functions from 10% to 5%.

2014-06-03 19:23:03

Proposal to reduce corporate tax rate by 1%. Corporate tax year 2015 shall be 33%.

2014-06-03 19:22:23

Sales tax on high irrigation equipment and equipment for green house farming is also proposed to be exempted.

2014-06-03 19:21:35

Concessions proposed for encouraging tunnel farming by removing customs duty on import of plastic coverings and mulch film, anti-insect net and shade net.

2014-06-03 19:20:28

Corporate tax rate be reduced to 20%

2014-06-03 19:17:53

Dar pauses during the budget speech during Maghrib prayers.

2014-06-03 19:16:59

Capital Gains: "With effect from 1st July 2014, Capital Gains Tax rates shall be 12.5% for securities held up to 12 months and 10% for securities held for a period which is between 12 to 24 months, whereas the securities held for more than 24 months shall be exempt from CGT."

2014-06-03 19:15:56

Dar now highlights some of the relief measures to be introduced through the budget.

2014-06-03 19:13:21

Finance minister announces phasing out of SRO-based concessions over a period of three years.

2014-06-03 19:10:27

Tax collection up by 16.4%, claims finance minister.

2014-06-03 19:09:44

Overall fiscal deficit project at Rs1,422 billion

2014-06-03 19:09:04

Federal deficit is projected at Rs.1,711billion for 2014-15 compared to the revised estimate of Rs.1,660 billion for last year

2014-06-03 19:08:42

Budget deficit to be brought down from 5.8% to 4.9%.

2014-06-03 19:06:24

Total budget of National Assembly: Rs 2.609 billion

2014-06-03 19:05:20

Total budget allocation for Ministry of Information: Rs.756.425 million Allocation for Ministry of Information Technology: Rs.3.029 billion Allocation for Ministry of Interior: Rs.610.872 million

2014-06-03 18:57:59

Credit availability to agriculture sector to be increased from Rs.380 billion to Rs.500 billion.

2014-06-03 18:56:22

To encourage use of tractors by farmers, sales tax on tractors to be brought down to 10% from 16%.

2014-06-03 18:55:06

Finance minister announces a "Credit Guarantee Scheme for Small and Marginalized Farmers". Scheme will benefit 300,000 farmer households with loan size up to Rs.100,000 and total disbursement of Rs30 billion.

2014-06-03 18:53:26

To develop national policy for long-term sustainability of agriculture, govt has decided to establish a National Food Security Council. "The council will be responsible for ensuring policy coordination across provinces and relating to productivity improvements, market reforms, value addition and prices that ensure stable incomes for farmers."

2014-06-03 18:51:35

In view of the need to take full advantage of GSP plus facility, textile sector will enjoy duty free import of machinery for two more years.

2014-06-03 18:48:03

SBP markup rate for Export Refinance Scheme to be reduced from 9.4% to 7.5% from 1st of July 2014.

2014-06-03 18:46:41

Draw-back for local taxes and levies to be given to exporters of textile products on FOB values of their enhanced exports if increased beyond 10% (over last year’s exports) at the following rates: Garments 4%, Made ups 2%; and Processed fabric 1%

2014-06-03 18:44:42

Govt has decided to reduce mark-up rate on exports finance from 9.4% to 7.5%, which will reduce the financial cost of exporters by 2%

2014-06-03 18:42:06

Funding for the provincial programs for population welfare has been kept at Rs8.2 billion.

2014-06-03 18:41:01

Combined outlay of Rs.63billion will be made for higher education, which represents about 10% increase.

2014-06-03 18:40:21

"A sizeable allocation of Rs.20 billion has been made for 188 projects of the Higher Education Commission, which will support development plans of different universities all over the country," announces finance minister.

2014-06-03 18:39:15

Special initiatives in the budget include the setting up of the EXIM Bank of Pakistan (Specialized DFI) to enhance export credit and reduce cost of borrowing for exporting sectors on long term basis. "The bank will provide liquidity to exporters. Its authorized capital will be Rs.100 billion while the initial Paid-up Capital will be Rs 10 billion. Legal framework for the establishment of the Bank will be developed through an Act of Parliament."

2014-06-03 18:34:57

Budget allocates Rs26.8 billion for health sector programs. "Our major focus will be polio eradication. An emergency plan has been made for this purpose and the federal government will work closely with the provincial jurisdictions to eradicate polio from Pakistan."

2014-06-03 18:32:33
2014-06-03 18:25:24

A total of Rs. 937.327 million allocated for defence production division for development schemes.

2014-06-03 18:24:28

The budget proposes 5 per cent additional tax for those who did not submit their tax returns last year.

2014-06-03 18:23:21

Rs.2.26 billion allocated for ongoing and new schemes of the Defence Division under the Public Sector Development Programme (PSDP) for the year 2014-15.

2014-06-03 18:21:13

The new federal budget proposes 7.5 per cent "Advance Tax" on electricity bills above Rs100,000 to discourage excess consumption and conserve energy.

2014-06-03 18:18:49

Dar says Benazir Income Support Fund was Rs40billion during previous govt's tenure. PML-N govt increased it to Rs75billion last year, and is now increasing it to Rs118billion. BISP will now reach out to 5.3 million people, up 29 per cent.

2014-06-03 18:13:30

3 per cent tax to be levied on sale of first-class airline tickets.

2014-06-03 18:10:31

1 per cent reduction in taxes on telecommunications. Telecom tax to be brought down from 19.5 percent to 18.5 percent.

2014-06-03 18:09:38

Five per cent reduction in tax on wedding functions, according to details of budget document.

2014-06-03 18:08:37

Rate of capital market gains tax to be increased from 10 per cent to 17.5 per cent effective from July 1 2014, according to details obtained by DawnNews.

2014-06-03 18:07:23

"We have been successful in curtailing inflation with strict measures taken during the previous budget," claims the finance minister.

2014-06-03 18:04:00

Short-lived uproar started in the House by MNA Jamshed Dasti as Finance Minister talked about privatisation.

2014-06-03 18:02:23

According to a copy of budget speech obtained by DawnNews, the budget deficit is considered the main culprit behind economic instability as it leads to both inflation and exposes country to external vulnerabilities.

2014-06-03 18:00:47

Total expenditure for 2014-15 is budgeted at Rs3,937 billion, according to budget details obtained by DawnNews.

2014-06-03 18:00:00

Gross revenue receipts of the federal government are estimated at Rs 3945 billion, showing an increase of 10 per cent, according to details obtained by DawnNews.

2014-06-03 17:49:13

The government has allocated a total of Rs. 329.330 million for the Textile Industry Division for different ongoing and new development schemes.

2014-06-03 17:45:38

Minimum pension for government employees has been raised from Rs5,000 to Rs6,000, according to details obtained by DawnNews.

2014-06-03 17:44:10

According to details obtained by DawnNews, the cabinet has approved a 10 per cent increase in salaries and pensions of government employees.

2014-06-03 17:41:41

Finance Minister Ishaq Dar is now reading out the budget speech on the floor of the National Assembly.

2014-06-03 17:40:56

A Public Sector Development Programme worth Rs525 billion has been approved by the cabinet.

2014-06-03 17:39:31

Cabinet approves budget 2014-15. Total outlay at Rs3.945 trillion.

Comments (49) Closed




Zafar
Jun 03, 2014 05:48pm

Lolzz...only 10 % increase in salaries

ahmad
Jun 03, 2014 06:16pm

im an officer, bps-17. 10% increase on basic pay means 2000 rupees increase. my house rent increased 2000 this year and school fees 1500 bills increased 2000 at least. not to mention other expenses on which inflation occurred. what should i do ? kill myself or take bribes ?

jaffer
Jun 03, 2014 06:18pm

@Zafar that is only for gov employees

Meo
Jun 03, 2014 06:29pm

@ahmad Sorry to know that. It is for this that I don't intend to join public services. I'm better paid in private sector and annual increment is about 15% a year, that becomes almost Rs.13,000. Just for fund I'm only 24 years old and have a lot to save from this salary. Any ways, feel sorry for your situation!

Mian Nasir ud din
Jun 03, 2014 06:35pm

Increase in govt.employees salaries is nothing keeping in view the inflation.

Farhan
Jun 03, 2014 06:38pm

Having been in Canada for 15 years and not seeing such inflation a 10% increase in salary looks like a distant dream for Canadians. But with what I have sen in Pakistan as inflation and no control over prices by anyone, 10% will go directly towards all increased bills and hence not into savings. On the other hand, I have also seen people making too many extra expenses which they can cut to save for future of their kids education etc. So, start cutting any extra expenses and start saving guys and not blame 10% increase, what if you don't get any increase..

Khurram Siddique
Jun 03, 2014 06:41pm

we are officially paying 1/3 of our budget to debt servicing. Way to go Pakistan....

ali ahmed
Jun 03, 2014 07:06pm

a budget based on foreign funding..

Zain
Jun 03, 2014 07:08pm

Sadly, the budget totally ignores the betterment of the quality of living. People are living in degrading conditions because Land and construction materials are out of range of their pocket. No middle class citizen can afford a five marla plot in Islamabad now. Government should adopt such a policy that can stop investments in Lands. It should also provide Housing schemes for the low income people. A housing scheme for the federal employees is a must.

Syed Ahmed
Jun 03, 2014 07:26pm

@ahmad: Why kill yourself. The dacoits sitting in the government must face death penalty.

sabeeh omer
Jun 03, 2014 07:27pm

Has any BUDGET ever given any relief to the thousands of Pakistanis who toil daily in blood and sweat? Can the so called parliamentarians even imagine the day to day problems that plague the ordinary Pakistanis and the plight of their countrymen? It's a SHAME!

Shahid
Jun 03, 2014 07:28pm

A retired officer has no option but to say thank you for the 10% increase in pension. The government should, however, see as to how this paltry increase will help an old pensioner who has no other source of income.

SKY
Jun 03, 2014 07:38pm

why 118 billion for so called benazir income support...???????

Ahmed
Jun 03, 2014 08:01pm

@Farhan Dear Farhan..you mentioned cutting back on extra expenses...Pakistanis have nothing to cut anymore...the people you see complaining here are mostly from middle class or below...please be mindful of your comments and understand gravity of the situation...I am also a Pakistani Canadian...living in Canada for a lot longer than you have....but am mindful atleast...my dear Pakistanis never loose hope...things never remain the same...-:)

Nabil
Jun 03, 2014 08:02pm

fine coverage from dawn...well done!

Kidwai
Jun 03, 2014 08:11pm

@Syed Ahmed The looters and plunderers of national exchequer have awarded us death sentence. People of Pakistan am sure will elect these rascals again and again.

Zarar Bahadar
Jun 03, 2014 08:12pm

Increment in salaries and pensions is the matter of govt employees, questionable thing is that what is good for the jobless youngmen?????? Allocation of funds for industrial purposes are not enough to create a large number of jobs opportunities. Said budget is merely friendly for the capatalists, magnates and traders not for bottomlines.

optimist
Jun 03, 2014 08:46pm

Total budget of National Assembly: Rs 2.609 billion. Compare this to total development budget and allocation for education and health.

Ayesha
Jun 03, 2014 09:51pm

No incentives, or reliefs for the ordinaries --- A Total Flop Budget, as expected.

tahir
Jun 03, 2014 09:52pm

what about salaries tax???

Iqbal
Jun 03, 2014 09:53pm

Targeted expenditure for needy persons is highly appreciated. Rich people who are not depended on shares income (having holding power to escape CGT) are favoured with lesser CGT which is unfortunate. Atleast some minimum exemption to investors on their total income below say 100,000 per year be exempted.

Tayyab
Jun 03, 2014 10:30pm

Very much orthodox budget that PML-N was supposed to present once again.

Just Someone
Jun 03, 2014 10:33pm

@ahmad: my parents and the whole of my extended family are retired government servants. The main problem is that the phrase 10% increase is misleading because it is only on the basic salary only and not on the gross salary. So in marketing terms for the government, It looks very nice - 10 percent increase compared to 9% inflation but in real terms, that 10% is much much less on the gross salary.

I also remember as a kid going out to shop with my mother a day after the budget and the shopkeeper quoted her an increased price. When she protested, he replied that she was a govt. Servant and that her salary had increased so she can afford to pay him more from this increase.

Nouman
Jun 03, 2014 10:47pm

People will remember PPP. They will be missing the budgets of PPP

Abid Hussain
Jun 03, 2014 11:09pm

this government always imposes taxes and does not increase salaries. they deal the nation like customers.

Arbab Khan
Jun 04, 2014 12:18am

10 % increase in pay of government employees is a joke. These politicians can spend 90 billions on Metro bus service in Lahore and allocated only 25 Billion for 10 % increase in pay and pension of all the federal government employees. I think along with 10 % increase, Poison may also be provided to Government employees and their families.

Suq Madieq
Jun 04, 2014 12:30am

Statistics have shown that an average American family earns more than the whole budget of Pak.

Khurram
Jun 04, 2014 01:18am

A common man in this country pays 14.5% sales tax on the purchase of Lifebuoy soap (total value: PKR 26) while real estate tycoons are supposed to pay a mere 0.5% as capital value tax (CVT) on the sale of a residential plot (total value: PKR 73 million for a 1000 sq.yds. plot in DHA). And then they say Pakistan is progressing ...

Maxhar
Jun 04, 2014 02:25am

@ahmad Curtail your expenses. If your rent is increased by 2000 you should change your area and move to a place where the rents are on the lower side. You should be Thanking Allah that you are part of that 5 % population which is considered to be in the MIDDLE or UPPER MIDDLE class of our country because you are not living below poverty line. You know that's the problem with our nation, when our salary is 10,000 our expenses r standing at 12,000. When the salary reaches 12,000, expenses goes up to 14,000. And let me bring something to your notice that in 90% companies including banks, the annual salary increment is never beyond 10% so what should they all do? Suicide? They do not even have medical benefits. So Please THINK.....

ali khan
Jun 04, 2014 02:40am

who will increase salaries of people working for non gov entities.

Ahmed
Jun 04, 2014 03:13am

@ahmad In our society it is assumed that only father is the wage earner while we want to provide a comfortable life to our kids and other family members. Schools fees are one of them. I can understand that now your monthly intake is Rs 22000 base + other benefits + pension etc , altogether I can guess Rs 30,000. You know 50% of Pakistani's living under poverty, so thankful to GOD first. Second I would suggest to ask your wife start working from home or outside to support family, in today's world not only father but mother should provide support to family.

DMDiL
Jun 04, 2014 03:54am

oh man, 39$ billion ka budget hai humara, yeh tao bohat low hai, Our nation need to learn to pay tax, if anyone work, they should pay tax.. no one should run business of any kind without skipping on taxes..

Ahmed
Jun 04, 2014 08:26am

@ahmad

Leave the government and absolve yourself from being a parasite and look for a real job. The leaders need to focus to make government smaller. The government and semi government employees should be de-incentivized to leave the government and work (truly work) in private sector. Data shows countries will smaller governments are more sustainable than countries like Pakistan and organizations like PIA etc.

event horizon
Jun 04, 2014 08:34am

@ahmad Luxury cars worth millions of dollars are being imported for those presently in power. Can we stop that money from getting wasted?

Mumtaz Hussain Shah
Jun 04, 2014 08:35am

In the budget no increase in Employees' Old Age Benifits (EOAB) is given. Dar sb increased minimum monthly labours wadges to 11000. What about the minimum EOAB wadges which are as low as Rs 3600 per month. Dar Sb have mercy on old age benificiaries by increasing their wages to atleast Rs 6000 pm.

Ahmed
Jun 04, 2014 08:36am

@Just Someone : I fail to understand why should government servants serving or retired be treated any preferentially. When I joined the government service I got better perks than I had signed up for. I left the services and joined the private sector and then moved to entrepreneurship. I was better off when in private sector compared to my colleagues because I was still accumulating pension, got free medical care and had some capital to rely on.

I think our government servant should stop whining and be thankful to what our country has given us. Ask thousands of people who would die to get a government job.

Ahmed
Jun 04, 2014 08:46am

@Ahmed Dear Ahmed, I would partially agree with Farhan. we need to balance our income & expenses. I have lived in Pakistan (including myself) have always complained of what is not available. I have witnessed the Haiti earthquake and Sandy, people live & livelihood extinct. I have seen people braving the disasters with a positive attitude. One woman lost two houses in 2 years and was still steadfast. There is a misunderstanding among people about FEMA, their contribution to disasters is close to nothing. We need to learn to adjust. I have asked my friends and younger generation in Pakistan about their willingness to pay for health insurance when they are young and healthy, answer from 90% is no. Guess what ACA mandate young to buy insurance or be penalized.

AAGB
Jun 04, 2014 09:04am

i wish people could understand that 10% increase in govt employee salary probably sounds very fancy, but in actual its only on basic salary and not gross salary. the actual increase in basic salary means 3.3% in gross salary.

Shahid Hussain Khokhar
Jun 04, 2014 09:21am

@ahmad Leave job if you are not satisfied and start a business.

haider
Jun 04, 2014 09:38am

im an soldier, bps-07. 10% increase on basic pay means 670 rupees increase. my house rent + bills etc are not mention other expenses on which inflation occurred. what should i do ? kill myself or take bribes ?

haider
Jun 04, 2014 09:40am

@ahmad , u r right staff.

M Tahir Daudi
Jun 04, 2014 10:10am

There is no relief for poor in this budget. Govt only facilitating rich people and making mock with the poor.

irfan bhatti
Jun 04, 2014 12:27pm

Rich people who are not depended on shares income (having holding power to escape CGT) are favoured with lesser CGT which is unfortunate. Atleast some minimum exemption to investors on their total income below say 100,000 per year be exempted.

@Barkzai Khan
Jun 04, 2014 01:11pm

P.M.L (N) Government always play with the feelings and expectations of government employees and their families. Income tax paid by an employee is on average equal to 70% of his current basic pay. While increase is 10% of the basic pay. So Rs 10 are given and Rs.70 are taken back.Since income tax is paid on gross salary including all allowances except medical allowance.What an excellent policy of give less n take back more.

Zia
Jun 04, 2014 01:28pm

No need increase in salary. Only decrease 15 % prices of eatable items. In school fees. Medcines and hospital charges

ahmad zubair
Jun 04, 2014 02:54pm

figures do not reflect the actual ground realities and miseries of people . I wonder how these targets will be achieved and what cost. high energy costs will increase inflation rather than crubbing it so stop playing with peoples sentiments and show them the real picture of our country.

tehseen
Jun 05, 2014 01:09pm

20 Billions for Health Sector ,, and 68 total for Education -Combined ( 188 hec project + education ) what a shame for our nation. for health and education at least 10-15 % budget must e allocated .. but here priorities are different .. what to Give to future generations ?? Roads and Bridges ? or HEALTH and EDUCATION ?

Fazal Karim
Jun 06, 2014 05:38am

Once again revenue is fully generated by indirect taxes to break back of middle and poor class. Again no mention of tax on agriculture income. If it is a provincial subject, government should assess income from agriculture in all the provinces and calculate tax on it. The amount so calculated be deducted from payable to provinces by federal government. Budget does not provide much needed incentive to most backward engineering industry.

farahan khan
Jun 06, 2014 03:46pm

Hahahahahah i think this budget iz only for the betterment of shareef and chudry and for butt.s family .no relief for poor and labour