federal budget 2011-12

8/6/2019 Federal Budget 2011-12

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Total size of budget is Rs 2,767 billion

Budget 14.2% higher as compared to previous year

Total resource availability at Rs. 2.463 trillion

Current expenditure is Rs. 2315 billion

Current expenditure share 83.7%

General Public Services Rs. 1660 billion

Total tax collection is Rs1.952 trillion

The fiscal deficit target at 4% of the GDP

Decrease in subsidies to Rs166.5 billion

Provincial share is Rs. 1203 billion

Capital receipts (net) is Rs. 396 billion

External receipts is Rs. 414 billion

Size of PSDP is Rs. 730 billion

Provinces share in PSDP is Rs. 430 billion

Reduction of duty to 5% on pharmaceutical raw materials

Reducing federal excise duty & eliminating special excise duty

Withdrawal of exemption of sales tax on defense stores

Increase in duty slabs on Cigarettes.

Rationalizing zero-rating regime

Increase in the income tax limit from Rs 300000 to Rs 350000

Exemption on 15 out of 40 items from federal excise duty

Decrease in tax on cash withdrawals from 0.3% to 0.2%

Waiving of zero-rated regime for five top export sectors

Amount of Rs495 billion for defense

Amount of Rs295 billion for Security expenditure

Increase in Salaries by 15% and pension 20-25%

Education to getRs39513 million& health Rs2.646 billion

Rs1, 034 billion for retiring foreign loans & interest payments

Reduction in the rate of Sales Tax from 17% to 16%

Abolishing GST on sugar and imposition of 8% excise duty

Total Public debt to be Rs10, 020 billion

SALIENT FEATURES OF THE BUDGET 2011-12

JUNE, 2011 JUNE, 2011 JUNE, 2011 JUNE, 2011

POLICY POLICY POLICY POLICY BRIEF 10BRIEF 10BRIEF 10BRIEF 10GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)GLOBAL RESEARCH INSIGHT FOR DEVELOPMENT (GRID)



304

125

414

396

1529

12032732

658

2074

2767

Bank Borrowing

Surplus for Pay & Pension

External receipts

Net Capital receipts

Net Revenue

Less Provincial ShareGross Revenue

Non-Tax Revenue

Tax Revenue

Total Resources

Receipts

Federal PSDP

66%

loan and

grants to

Provinces

12%

Other

Development

22%

Development Expenditure

Current

Expenditure

84%

Development

Expenditure

16%

Expenditure

Interest Payments

34%

Repayment of

foreign loans

11%

Pension

4%

Defence

21%

Grants and transfers

13%

Subsidies

7%

Running of Civil Government

9%

Provision

1% Current Expenditure

POSITION OF RECEIPTS AND EXPENDITURE



GOVERNMENT BUSINESS COMMUNITY POVERTY

Increasing resource mobilization

Boosting economic activity

392 regulatory duties to be abolished

Special excise duties to be abolished

Additional Rs182 billion via unannounced RGST

Withdrawal of sales tax exemption on items

Lower deficit target to decrease expenditure

Increased PSDP to boost economic activity

Taxing new sectors and items for increasing tax/GDP ratio

Private credit for investment

Bank transaction tax decreased

Incentives for equity based projects

Increase in capital market growth

Increase in Production

Removal of duplicity in tax

Decrease in tax on raw materials

Increase of salaries and pensions

No additional tax on education, food & health

Increasing tax limit from Rs300,000 to Rs350,0

Decrease in sales tax to help end consumers

Exemptions on several items to ease inflation

IMPLICATIONS



The government has tried to provide relief to

the business community and we will continue

to play their part in contributing towards the

economic recovery of the country.

(OICCI President Naved A Khan)

It is a good effort made to bring 2.3 million

new taxpayers in tax net and appreciated

reduction of duty on 40 items and withdrawal

of special excise duty.

(Senior Vice President KCCI, TalatMehmood)

“ There is zero possibility to revive the proposal

to bring the assets of the rich and influential

companies into the tax net for increasing tax

base.

(Dr Hafeez A Pasha, Head of Revenue

Advisory Council (RAC))

Government has not favored construction

sector in the budget to escalate the pace of

economic activities. He said the government has presented a speculation based budget,

which would not create positive impact on the

masses.

(Chairman Association of Builders and

Developers of Pakistan- AB- Babar Chugtai)

The relaxation in tax limit from Rs 300,000 to

350,000 is a step in the right direction.

(President Khalid Mehmood, Sukkur

Chamber of Commerce and Industry- SCCI)

POST- BUDGET REACTION FROM STAKEHOLDERS

federal budget 2011-12

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