PTI led coalition government smoothly passed Finance Bill 2021 from National Assembly
The PTI led coalition government smoothly passed the Finance Bill 2021 from National Assembly on Tuesday 29th July 2021 which was announced earlier on 11th June, 2021.
The Finance Bill 2021 was presented by Finance Minister Shaukat Tarin.
The total expenditure of the now approved Finance Bill 2021 is PKR. 8,487 B (eight thousand four hundred eighty seven billion Pak rupees).
An aggressive tax collection target of PKR. 5829 Billion is set in this fiscal bill with strict punitive laws being introduced for the tax defaulters.
The government has set GDP growth target at 4.8 % for the next fiscal year while the overall budget deficit is estimated at 6.3 % of the GDP and the primary deficit is targeted at 0.7 % of the GDP.
A target to generate PKR.2 Trillion from the non-tax revenue is also set in the Finance Bill.
PKR 1.37 Trillion are dedicated for defence services, PKR 3.06 Trillion for interest payments and PKR 480 Billion for pension payments.
Shaukat Tarin informed the lawmakers that the PTI led government has allocated PKR 63 Billion for the agriculture sector in the annual budget for next fiscal year as compared to PKR 1.6 billion earmarked in 2017-18 (PML-N tenure). Adding that tax exemptions on pesticides and fertilizers have not been withdrawn.
In the fight against the corona virus pandemic US $ 1.1 Billion has been allocated for the procurement of vaccination from different countries.
The federal employees have been granted ten percent ad hoc relief besides ten percent increase in pensions. The minimum wage has been enhanced to twenty thousand rupees per month.
The annual PSDP has been increased by 40 % from former PKR 630 Billion to PKR 900 Billion of which PKR 100 Billion has been earmarked for construction of hydro-power dams including Neelum Jhelum, Dasu, Diamer Basha, Mohmand.
The funds allocated for Ehsaas program have been enhanced to PKR. 260 Billion from previous PKR 210 Billion which is a massive increase aimed at curtailing the affects of inflation and to support the deprived masses of the society.
To promote the Information Technology (IT) Sector zero rating on export of IT services.
The amount allocated for subsidies has also been massively increased to PKR 682 Billion compared to the PKR 430 Billion during last fiscal year.
Tax relief has been given for locally manufactured cars up to 1000CC and various tax exemptions and incentives have also been given to promote the manufacturing of electric vehicles in Pakistan.
PKR 66 Billion have been allocated for the Higher Education Commission (HEC).
The Kamyab Jawan Program has been granted PKR 10 Billion in this budget.
The govt. in the finance bill 2021-22, has allowed 10 % ad hoc relief allowance to all federal government employees from 1 July 2021 and 10 % increase in pension to all pensioners.
The orderly allowance has also been increased from PKR 14,000 to PKR 17,500 while the minimum wage limit is set to PKR 20,000 per month.
The ruling alliance vehemently rejected the amendments proposed by the opposition members in agriculture, industries, power tariff and other sectors declaring them inapplicable.
The opposition leader and the President of Pakistan’s second largest political party PML-N Mian Shehbaz Sharif absented from the NA along several of his party lawmakers which was considered by many as a tacit support to the PTI led government for the approval of the Finance bill.
The PTI led government claims it to be the best ever budget/ finance bill presented in Pakistan with vast incentives and measures to promote economic growth, entrepreneurship and to improve the lives of the general public.
On contrary the opposition political parties the PPP , PMLN, JUI, ANP and other small political parties are critical of this Finance Bill.
The approval from NA has given legal coverage to all the budget proposals for the next fiscal year.