Islamabad: The National Assembly on Friday approved the federal budget with total outlay of 18877 billion rupees.
Finance Minister Muhammad Aurangzeb moved the finance bill to the lower house of the parliament, which was endorsed by the ruling alliance, including the Pakistan Peoples Party (PPP).
The gross revenue receipts have been estimated at 17815 billion rupees. These include FBR's revenue collection of 12970 billion rupees and non-tax revenue 4845 billion rupees. The share of provinces in the federal receipts will be 7438 billion rupees.
The growth rate is expected to be 3.6 percent during the next fiscal year. Inflation is expected to be 12 percent, budget deficit 5.9 percent of GDP and primary surplus will be one percent of GDP.
The development budget has been set at the historic level of 1500 billion rupees.
The budget envisages 25 percent increase in the salaries of government employees from Grade-1 to 16 and 20 percent from Grade-17 to 22. Fifteen percent raise has been given in the pension of retired government employees. The minimum wages have been enhanced from 32,000 to 37,000 rupees.
Speaking on the occasion, Aurangzeb said cardiology stents, surgery items, book, printing and FATA and PATA have been given tax exemption. He said we all need pure milk and we want to promote it but tax exemption cannot be given on packed milk which is not of standard.
The minister said this tax exemption for education and health was given in very difficult economic conditions. He further said exemptions to the agricultural inputs like fertilizers and pesticides as well as exemption to researchers and teachers will continue.
