PTI led Government presented its first Federal Budget for Fiscal year 2019-20
08 July 2019 0 comments
As we all know that Pakistan is going through various of problems and in order to sort out these problems a government has to step up for the sake of the people of the country. These problems are becoming dense with each passing day and someone or a government has to step up so that they deal with it and the people of the country for once live a life tension free. We are currently facing some major problems that are the economic problem and the economic development, the rise in dollar rate, poverty, hunger, illiteracy, unemployment, poor health facilities and condition, and corruption.
Currently Pakistan is facing the problem of unemployment and the day by day rise in dollar rate. If unemployment is not dealt with soon then it would be will be soon that the crime rate again starts to grow gradually and there would be a percent of rise by each year. If a person is unemployed then he would think of to generate money one way or the other way , it would not be too late that he will start to think negatively and he will soon be doing illegal work and he would be involved in illegal activities. He will think about all the time to feed his family and due to unemployment he will be helpless. He will also face the problem of poverty and hunger as making money would be impossible for him so he will have to take a detour and he will be soon involved in a criminal activity.
In order to solve these problems the previous governments presented different budgets in which taxes would be induced on the people so that Pakistan treasury is filled at time and there would be money for development. Budgets that were presented by the previous government were not that much useful because as soon as the treasury would be filled there would be corruption in process by the people of the government. Due to corruption the country had to take debt from other countries or organizations on an interest percentage. This made Pakistan fall into a chaotic position and if this continues then it will be soon that Pakistan fell into chaos, in order to deal with this situation the present government took a U-turn and presented a new and change budget of Pakistan that would be for one year time starting from this July. The budget of 2019-2020 is promised to bring a change to the country and the people. Everything is overpriced as of the new budget that is indulged by the new government.
The government set the budget amount of almost 7,036 billion rupees. The total collection has been set RS.6716.6 billion of which RS.5,822.2 billion would be collected through taxes. Ministry of finance Hammad Azhar said that they have a special focus on the less developed area and hence presented a special layout of the development plan which is to follow:
- Total amount of PSDP is Rs.1.863 trillion out of which Rs. 951 Billion would be a share of federal PSDP and RS.912 Billion provincial PSDP.
- 250b has been separated for alternative financing.
- National authority of highway is supposed to get a total of Rs. 156b.
- The Sukkur-Multan motorway is to receive a total amount of RS.19b.
- 20b has been made compulsory for the Diamer Bahasha Dam and land acquisition.
- The Mohmand Dam is to get a total of RS.15b.
- 54.68b has been allotted for the Dasu hydropower project.
- The Human Rights division is to get RS.142.9 million.
- 2343m has been set aside for the production and industries.
- 7,341m for information technology and telecom division.
- 24.457b for atomic energy commission.
- Our total debt and liabilities were about 31,000 billion rupees.
- Pakistan is under a huge debt of RS.105.8 USD in million and is expected to rise to a total of 123,000.00 USDMillion in 2020.
- Out of which RS.9.2 billion foreign loan (external loan) is to be paid this year as planned by the development budget.
The budget that is induced for technology is RS.43 Billion out of a total of RS.951 billion of the development budget. This means that science and technology would have benefit from this budget of 2019-2020 and that there would be a rise of technology this year in Pakistan and Pakistan would try to co-operate with the foreign organizations of technology and it’s a good news for the technology department but taxes have been implemented on the smartphones and future tech as they are the product of import and the implemented tax on the smartphones are from 5% - 10% varying on the brand of smartphones you are going to buy.
From kitchen budget you could already have an idea about the things you use in your daily life. Yes, kitchen items are included in the budget. The things that you use in your daily life are edible oils, ghee and cooking oil which will now be charged 17% FED. This is going to be a bummer for the young generation as the soft drinks are going to take a toll and a rise from 11.5% to 14% FED is implemented as well as sugary drinks like “Rooh Afza”, squashes, juices and syrups are subjected to 5% FED.
A not so good news is for the smokers as an almost of 50% rise on every cigarette is implemented. Suppose a cigarette is for RS.10, now it will be for RS.20, and if a packet of cigarette is for RS.150 it will now be available for RS.300 at the retail shop.
Petroleum, CNG and diesel:
The FED charged petrol, CNG and diesel the most out of other things. The FED on CNG took a rise from RS.17.18 per 100 cubic meters to Rs10 per million British thermal units (MMBTU). Petrol is now more costly and has taken an almost of 13% rise meaning that petrol is RS.110 per liter and diesel costs RS.122.32 per liter.
A good news for the foodies as restaurants are going to serve the food a little cheaper than before as sales tax on the restaurants are slashed from 17% to 7% and this implementation is applied for bakeries and canteens as well. Well at least you can have a sigh of relief in the restaurants for now.
Jewelry is expected to take a rise and for now the budget of jewelry which is implemented is 1% of tax on gold and silver whereas the gold used in jewelry is taxed at 1.5%, diamonds at 0.5% and making charges of 3%.
The vehicles have taken a high percentage of taxes as now the vehicles that start from 0cc – 1000 cc will be having a 2.5% of rise in the taxes whereas 1,001cc to 2,000cc at 5pc of their value; and at 7.5pc of the car’s value if it has engine capacity above 2,001cc.
The taxes on tourists are reduced and tourism is now made easy for everyone as the hotels for tourists are also cheaper now. Now the hotels are described in classes, the classes are divided into three and the prices will vary differently from class to class. The prices are RS.1,200 for a suitable hotel , a good one will have 2,000 and 5 star will have a 3,000 starting value for the tourists.
The agriculture was affected in the past and our economy is mostly based on agriculture. The taxes on agriculture that are implemented is an amount of 5% meaning that cotton is going to be expensive and most of our daily intake vegetables are going to be expensive. One kilogram of sugar is now at 75 rupees from 68 rupees. A 200 rupees is added to a 790 rupees of wheat meaning now it’s near to 1000 rupees. Rice is also expensive. The agriculture department took a huge bummer.
Health & Medicines
The budget for medical have been an issue for the past but federal government has allocated an amount of Rs.13376.558 million for completion of 32 new and 13 ongoing health sector projects under Public Sector Development Programme. But let us discuss the taxes now as we all know that medicines play a vital role in our life. A 500ml of normal saline is now for 60 rupees from 40 rupees, a 1000ml is of 120 rupees from 70 rupees meaning that a total of around 20 percent is implemented on medicines. Each capsule or tablet has to be given an almost of 1 percent.
The government has earmarked Rs 77.262 billion for Education Affairs and Services in the federal budget for 2019-20 against the revised allocation of Rs 97.155 billion for the current fiscal year, showing a decrease of around 20.5 percent. The government has also reduced the budgetary allocation for higher education sector. Pakistan's public expenditure on education as percentage to GDP is estimated at 2.4 percent in fiscal year 2018-19, which is the lowest in the region. But this doesn’t mean that it is easy on the students as a student of F.Sc at the time of admission has to give a total amount of 70 thousand rupees if it’s a private institute and if it’s a government institute then he would have to pay an almost thousand where as for the higher education a student have to pay an almost of 90 thousand-1 lakh for private institute and an almost of 6 thousand- 10 thousand for government institute.