ISLAMABAD: Finance Minister Ishaq Dar on Wednesday presented Pakistan’s federal budget 2013-14, estimating the total budget outlay at Rs3.985 trillion.
Budgetary proposals include the revival of economy, special measures to address the ensuing energy crisis and the construction of water reservoirs and infrastructure across the country.
Ishaq Dar announced that Rs627 billions were allocated for the defense.
He announced that Benazir Income Support Program (BISP) project would continue as National Income Support Program (NISP), allocating Rs75 billion for the next financial year.
He said the government has also increased the monthly allowance from Rs1000 to Rs1200 under the NISP program.
The development budget has been estimated at Rs.1155 billion for Public Sector Development Programmes (PSDP) for the year 2013-14, with Rs.540 billion as Federal component and Rs.615 billion provincial component.
Under the PSDP allocations, priority has been given to water and power sector, besides emphasizing on social sector health education and poverty alleviation, claims the finance ministry.
He said that Rs31 billion was allocated for the rehabilitation of Pakistan Railways. The finane minister announced that Karachi Circular Railway (KCR) would be built with the help of Japan government.
In the budget, the tax exemption for luxury cars is proposed to be abolished while 1200 cc hybrid cars are being exempted form import duty. A concession of 25 % has been proposed for 1800-2500 cc cars and 1200-1800 cc cars 50% duty reduction.
Ishaq Dar announced that Rs250 billion were earmarked for the energy projects. The government, he announced, has allocated Rs55 billion for the human development projects.
A modernize version of Shahra-h-Resham has been envisaged that includes development of rail and road links from Gwadar to Kasghar, China.
Faisalabad-Khanewal-Multan and Karachi-Hyderabad motorways projects will be completed soon, Dar announced.
He said that the general sales tax (GST) was increased from 16 to 17 percent. A new adjustable withholding tax will be introduced for foreign dramas being played on local TV channesl.
He announced that 3-G license would be issued and government will get billions of rupees from it. Secret funds allocated to different ministers have been withdrawn. A Rs2 billion subsidy would be given for the holy month of Ramadan, he announced.
The foreign minister said that interest free loans would be given to men and women for small scall businesses. The provinces, he said, would get Rs77 billion in the form of loans for various projects.
In addition, Prime Minister Nawaz Sharif has announced 45 cuts in overall spending. A microfinance scheme, he said, would be launched by the Prime Minister. The number of federal ministers has been reduced from 48 to 25.
A ban was imposed on purchase of new vehicles for the public offices from banks.
