FinMin Presents  budget For FY2024-25 In Delayed NA Session

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FinMin presents  budget for FY2024-25 in delayed NA session

Sunni Ittehad Council (SIC) continue to protest throughout the speech of Finance Minister Senator Muhammad Auranzeb.

ISLAMABAD: (UrduPoint/Pakistan Point News-June 2024) Finance Minister Muhammad Aurangzeb on Wednesday presented the 2024-25 budget after a delayed start to the session.

The budget session for the fiscal year 2024-25 began after a brief delay as the PML-N secured the cooperation of its key ally, the PPP.

The PPP's parliamentary party, led by Bilawal Bhutto Zardari, however, expressed concerns about the budget, deciding not to attend the session due to not being briefed on the details.

PPP leader Syed Khurshid Shah stated, “We do not know which and what kind of budget is being presented. We are unaware of the agreements with the IMF and China. In the past, the opposition was taken into confidence, but an ally is not taken on board."

The federal government introduced its first growth-oriented budget for 2024-25, with an estimated outlay exceeding Rs18,900 billion.

The cabinet approved the budget, but the National Assembly session was delayed when the Pakistan Peoples Party decided to boycott it. The budget was initially scheduled for presentation at 4 PM.

Efforts were made by the PML-N to bring the PPP on board for the budget session. Deputy Prime Minister Ishaq Dar met PPP Chairman Bilawal Bhutto Zardari to address the PPP's concerns.

Additionally, the Sunni Ittehad Council (SIC) announced its decision to boycott the budget session.

Federal Minister for Finance and Revenue Muhammad Aurangzeb will present the budget for fiscal year 2024-25 in the National Assembly.

The budget has been formulated with consideration of the current economic challenges on both domestic and international fronts.

Focus Areas

The budget will focus on alleviating people's hardships, transforming the agriculture sector, promoting Information Technology (IT), boosting exports and industrial growth, and supporting businesses.

The government aims to present a pro-people, business-friendly, and progressive budget, pursuing policies aimed at fiscal consolidation to contain the budget deficit.

Revenue mobilization, economic stabilization and growth measures, reduction in non-development expenditure, job creation, and policies for socioeconomic prosperity are expected to feature prominently in the budget.

Defence Allocation

Rs2,100 billion has been allocated for defence, reflecting a 19.29 percent increase from the Rs1,804 billion allocated in fiscal year 2023-24.

Social Sector and Governance

The budget will emphasize social sector development and introduce reforms to improve governance and boost private sector investment.

Revenue Measures

On the revenue side, the government will introduce improvements in the tax collection system, broaden the tax base, and facilitate taxpayers.

Given the robust revenue growth during the current fiscal year (2023-24), the government is likely to set a revenue collection target of over Rs1,200 billion for 2024-25.

Preparations for the federal budget announcement are in full swing, with coordination among all departments and ministries involved in the budget process, including its presentation in parliament and the launch of the Economic Survey.

Budget Overview

The federal budget will exceed Rs18,900 billion.

Interest Payments

An amount of Rs9,700 billion has been earmarked for interest payments on loans.

Development Projects

The government has allocated Rs1,500 billion for development projects for the next financial year.

GDP Growth Target

The budget sets a GDP growth target of 3.6 percent.

Sector Allocations

Rs253 billion for the energy sector

Rs827 billion for infrastructure

Rs800 billion for energy sector subsidies

Rs206 billion for water resources

Rs279 billion for transport and communication

FBR Targets and Revenue Sources

The Federal Board of Revenue (FBR) has a tax collection target of Rs12,970 billion for the coming financial year, including an additional revenue target of Rs3,720 billion, Rs3,452 billion in direct taxes, and Rs267 billion in customs duty.

The land revenue tax volume will be Rs11,379 billion, with direct taxes accounting for Rs5,512 billion, and income tax at Rs5,454 billion. An additional target of Rs1,773 billion has been set for income tax.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.