Key Highlights of Budget 2023-24. The fiscal year 2023-24 budget was put forth by the Pakistani government on Friday. Business Recorder has analyzed the paperwork and compiled some of the most notable aspects for review.
Major Points of Key Highlights of Budget 2023-24:-
- Government sets 3.5% growth and 21% inflation targets for the 2023-24 fiscal year
- Tax-to-GDP ratio expected to be 8.7%, with a $6 billion projected current account deficit
- Allocations for defense spending, subsidies, pension, Public Sector Development Programme, and health sector
- Increased agriculture credit limit and solarization of 50,000 agriculture tube-wells
- No duties or taxes on imported seeds, harvesters, dryers, and rice planters
- Subsidies for PM’s Youth Business and Agriculture Loans scheme, imported urea, wheat flour, ghee, pulses, and rice
- Salary increases for government servants of grades 1-16 and 17-22
- Sales tax exemptions for IT and IT-enabled services and freelancers with monthly exports of $2,000
- Increased funding for Benazir Income Support Programme and minimum pension established
- Provision of 100,000 laptops for students and exemption of custom duty on raw material imports for batteries, solar panels, and inverters.
Fiscal Year Key Highlights of Budget 2023-24:-
According to a statement from Finance Minister Ishaq Dar, Pakistan’s economy has set its sights on achieving a growth rate of 3.5% during the upcoming fiscal year, with the announcement made during the unveiling of the Rs14.5-trillion federal budget 2023-24 on Friday in the National Assembly.
- Pakistan aims for 3.5% economic growth in the 2023-24 fiscal year.
- Finance Minister Ishaq Dar announces the goal during the budget unveiling.
- Rs14.5-trillion federal budget set for 2023-24.
Fed retirees’ pensions up 17.5%.
Dar announced a uniform hike of 17.5% to be applied on pensions of retired public sector workers. “Despite their non-taxable status, considering inflation, this augmentation seems fitting,” commented Dar.
Fed govt employees get increased ad-hoc relief:-
Dar made a significant declaration regarding the ad-hoc relief allowance for federal government employees. Employees in grades 1-16 would benefit from a substantial boost of 35%, while those in grades 17-22 would receive a 30% increase. Furthermore, Dar revealed that other allocations, which had been suspended earlier, would now be raised by a staggering 50%.
- Dar announced significant changes in ad-hoc relief allowance for federal government employees.
- A boost of 35% would be given to employees in grades 1-16.
- A 30% increase would be given to employees in grades 17-22.
- Other suspended allocations would be raised by 50%.
Tax shares bonus Key Highlights of Budget 2023-24:-
According to Dar, it has been decided to implement a uniform tax rate of 10% on the allotment of bonus shares for publicly listed firms.
“Insurance for artists & journalists”
- Finance Minister announced Public Sector Development Programme (PSDP) at Rs1,150 billion.
- Rs200 billion of the PSDP would be allocated for public-private partnerships.
According to Dar, there will be an increase of 17.5% in the pensions of retired public sector employees. Dar stated that even though these pensions are not subject to tax, the hike is necessary to keep up with inflation.
- Retired public sector employees will see a 17.5% increase in pensions
- The increase is needed to keep up with inflation
- Pensions of retired public sector employees are not taxed.