Federal budget 2011-2012 is expected to announce today. From a business man to a common man, from large entrepreneur to a small, all are very impatient to have new policies made by policy makers. There are many pre-budget debates on tax allocation. Now let’s see that how does 45 min speech full of complex financial words react on people of Pakistan.
According to a senior government official tax revenue target has been proposed at Rs1.952 trillion for the fiscal year 2011-12. He said that except for unpacked food items, education, health and agriculture produce, almost every segment of economy would be brought under the consumption tax, widely known as GST, but it would not be called reformed general sales tax for being too controversial. Equipment and machinery relating to the CNG sector, fertilizers, pesticides, computers and other professional materials would come under 17 per cent GST.
The size of Public Sector Development Programme has been set at Rs280 billion against the current year’s original estimate of Rs270 billion which was brought down to Rs180 billion. Another Rs35 billion will be spent on flood relief assistance, slightly less than current year’s Rs40 billion.
Pensions will require Rs118 billion against this year’s Rs107 billion. An amount of Rs495 billion has been earmarked for defence, about 12 per cent more than current year’s allocation of Rs442 billion. Total security-related expenditures will increase by 15 per cent to Rs835 billion against this year’s Rs727 billion.