By WEB DESK: The Federal Government is set to present the federal budget of Rs18 trillion for the fiscal year 2025-2024 in the National Assembly today.
The Ministry of Finance has finalised the budget preparations, and Finance Minister Muhammad Orenzib will present the budget for approval in Parliament.
Furthermore, there is a possibility of rise in prices of agricultural goods, food, medicines, and stationery.
The budget estimates expenditures and repayments of loans at Rs9.5 trillion. With the exemption of sales tax and imposition of additional taxes, there is a possibility of an increase in sales tax on most items, proposals including sales tax on wheat, holding tax, and customs duties.
The target for tax revenues is set at Rs12.9 trillion, with proposals including a 5% sales tax on petroleum products to generate additional revenue of Rs. 200bn, and the possibility of imposing other new taxes.
Aiming to generate over Rs1 trillion in revenue from petroleum levy, the budget proposes to abolish all unnecessary sales taxes, expected to bring in an additional income of over Rs500 bn.
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A sales tax is proposed on agricultural goods, seeds, fertilizers, tractors, and other machinery, while a 10% sales tax is proposed on food, medicines, and stationery. A proposal to allocate Rs. 800bn for subsidies in the energy sector is also on the table.
Under pension reforms, the introduction of a contributory pension system for recruits is being considered, while retired employees may receive pensions for up to 20 years instead of gratuity payments.
The duration of family pensions may be reduced to 10 to 15 years, and the possibility of ending or reducing the pension for daughters is also being discussed.
According to documents, the upcoming budget allocates Rs827 bn for infrastructure, Rs. 253bn for energy, Rs279 bn for transportation, Rs. 206bn for water projects, Rs. 280 billion for social sectors, and Rs. 45 billion for health.
Furthermore, Rs93 bn is allocated for education and higher education, Rs75 bn for SDGs, Rs. 42bn for agriculture, Rs28 bn for governance, Rs79 bn for science and technology, Rs64 bn for districts integrated into KPK, and Rs. 75 billion for Azad Kashmir and Gilgit-Baltistan.
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