HomeBusinessHow much progress is expected in the federal budget, employee wages, pensions?

How much progress is expected in the federal budget, employee wages, pensions?

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Islamabad (News Desk) The federal budget of 18 thousand billion rupees will be presented in the National Assembly tomorrow, where an increase of 10 to 15 percent is expected in the salaries of government employees, while 2100 billion has been set aside for defense in the budget. .

The budget estimates interest and debt payments at Rs 9.5 trillion as the preliminary estimate of non-tax revenue. With the end of the sales tax exemption, additional taxes will be imposed. Proposals for sales tax, withholding tax and customs duties on most goods are likely to increase.

Change in the date of presentation of the Federal Budget in the National Assembly

It is proposed to set the tax collection target at Rs 12.9 trillion, in order to get an additional revenue of Rs 2 trillion, other taxes are likely to be increased including 5 percent sales tax on petroleum products, one percent increase in GST and eliminate unnecessary tax exemptions.

The target of receiving more than 1050 billion rupees in the form of petroleum levy is proposed. The proposal to remove all unnecessary sales tax exemptions in the budget is expected to generate additional revenue of five and a half billion rupees.

Sales tax will be levied on agricultural products, seeds, fertilisers, tractors and other equipment, while a 10% sales tax has been proposed on food, medicine and stationery. It is planned to allocate 800 billion rupees for subsidies in the energy sector.

Time limit in negotiations with the IMF, obstacle to budget preparations

Under the pension reforms, a voluntary contributory pension system is likely to be introduced for newly recruited workers while retiring workers will be offered a pension for 20 years rather than for life.

The duration of the workers’ family pension is 10 to 15 years, while the daughter’s pension is also likely to be terminated and commuting reduced.

Besides, according to the document, 827 billion rupees have been allocated for infrastructure, 253 billion rupees for energy, 279 billion rupees for transport and communication, 206 billion rupees for water projects, 280 billion rupees for the sector social, and 45 billion rupees for health.

According to the document, in the upcoming budget, Rs 93 billion for education and higher education, Rs 75 billion for SDGs, Rs 42 billion for agriculture, Rs 28 billion for governance, Rs 79 billion for science and IT, Rs 64 billion for combined areas in KP and Rs earmarked for Azad Kashmir and Gilgit-Baltistan.

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