ISLAMABAD: With new initiatives along with relief measures for salaried, low and middle income groups, the PML-N government presented its fifth consecutive budget with a total outlay of Rs 5.1 trillion, to realize the objectives of inclusive and sustainable economic growth.
Finance Minister Ishaq Dar while presenting the budgetary proposals for FY 2017-18 in the National Assembly spelled out major economic benchmarks for FY 2017-18 including the real GDP targetted to grow at 6%; bringing inflation below 6%, budget deficit at 4.1% and tax to GDP ratio at 13.7%.
Ishaq Dar also announced the merger of 2010 adhoc allowance in the basic salary of federal government employees as well as 10% adhoc relief on revised basic pay.
The armed forces personnel, in addition to incorporation of 2010 adhoc allowance, would get the merger of 2008 adhoc relief as well in their basic pay.
The federal government pensioners would also get a raise of 10%, the Finance Minister told the House, adding, on the pattern of increase in the pay of Government employees the minimum wage of labourers for their benefit is being increased from Rs. 14,000 to Rs.15,000 per month.
The size of Public Sector Development Programme (PSDP) for FY 2017-18 has been put at Rs 2.113 billion including Rs 1,001 billion for federal PSDP as well as the allocation of Rs 1,112 to the provinces.
He said, the resource availability during 2017-18 has been estimated at Rs 4,681.2 billion against Rs 4,442 billion in the budget estimates of 2016-17.
The defence budget is proposed at Rs 920 billion for FY 2017-18 against the revised budget of Rs 841 billion in the FY 2016-17, the Finance Minister added.
Ishaq Dar also unveiled a strategy to achieve targets that included 14% increase in FBR revenues; 11% growth in federal expenditures; 7% increase in non-tax receipts and containing current expenditure below the level of inflation. He also announced new initiatives for agriculture, financial sector, exports, textile, social sector and employment, aimed at boosting economic activity at fast pace. The Finance Minister also announced tax incentives aimed at giving facilitation to the agriculture, Small and Medium Enterprises (SMEs), and Information Technology (IT) sectors.
