For the first time in Pakistan, the government was spending less than its revenue. Financial Adviser
For the first time, government spending fell short of our income, according to a financial adviser
Finance Adviser Hafeez Sheikh has said that government expenditure has been strictly controlled, for the first time government expenditure has been less than our revenue, next year loans of Rs 3,000 billion will be repaid, steps will be taken to get out of the shrinking economy.
He clarified that new taxes would not be imposed in the new budget; there is an attempt to reduce the existing tax rates.
Finance Advisor Hafeez Sheikh held a press conference in Islamabad on Thursday in which Abdul Razzaq Dawood, Sania Nishtar, Finance Secretary Naveed Kamran, also participated.
The Finance Adviser briefed about the Economic Survey and said that we had inherited the economic crisis, exports have increased due to keeping the dollar cheaper, the government has taken steps to improve taxes, the government has given concessions to the business sector out of its own pocket.
Hafeez Sheikh said that the inherited 20 billion deficit was reduced to 3 billion, the loans are taken in the past were also repaid, Rs 5,000 billion taken for the previous government was repaid.
Hafeez Sheikh said that the country’s deficit was reduced by 73%, not a single penny was borrowed from the SBP for the whole year, no additional grant was given to any institution, people’s money was spent carefully, and the government provided electricity, gas, and loans.
The tax adviser said that there was a satisfactory increase in taxes, tax revenue increased by 17% before the arrival of Corona, but due to Corona, the pace slowed down. Otherwise, tax revenue would have increased by 27%.
He said that two years ago we were going to default, we also froze the budget of the army, despite the low budget doubled the budget of the Ehsas program, increased the budget to Rs 192 billion.
The finance adviser added that the IMF predicts that world revenues will fall by 3 to 4 percent.
He said that the economic growth rate was zero point 4 percent instead of the target of 3 percent. He did not want to strengthen the tax grip on the citizens in this environment.
Regarding the FBR, Hafeez Sheikh said that the tax revenue of the FBR would remain at Rs 3900 billion, the FBR lost Rs 800 billion, decided to save its economy and people from Karuna, Rs 1240 billion. The package was given, the subsidy was given to the State Bank while it was decided to give cash to 16 million families.