The federal budget for the financial year 2020-2020 will be presented today. Minister for Industry and Production Hamad Azhar will present the budget in the National Assembly.
Sources said that the PTI government will present a budget deficit of more than Rs 34 trillion. The total estimate of the federal budget is more than Rs 88 trillion.
The budget proposals will be approved in a special meeting of the federal cabinet chaired by the prime minister today. The cabinet meeting will also decide to increase the salaries of government employees.
The federal budget for the next financial year proposes to set a target of Rs 49.50 trillion for FBR tax collections while the budget deficit is estimated to be more than Rs 34.27 trillion.
The federal budget has estimated Rs 31.50 trillion for interest and debt repayment and Rs 1.28 trillion for defense.
The budget proposes to allocate Rs 4.75 trillion for pensions, while Rs 4.95 trillion is likely to be allocated for federal ministries and departments. The federation can spend Rs 2.60 trillion on subsidies. Yes, Rs. 820 billion can be released in the form of grants.
Sources said that the federal development budget will be kept at Rs 6.5 trillion. It is recommended to abolish sales tax exemption for various sectors while proposing to increase the tax rate for non-filers and for the salaried class. No concession in income tax is possible, input tax credit facility to unregistered persons may also be abolished.
The budget for the new financial year is likely to impose a withholding tax on foreign currency transactions. Is likely to be done.