The budget for the fiscal year 2022-23 (FY23) was presented in the National Assembly on Friday.
Finance Minister Miftah Ismail presented the budget before the national assembly session.
The federal minister bashed the previous PTI government as he started the budget speech saying its policies had hurt the economy and damaged the lives of the country’s masses.
“An inexperienced team brought the country to the brink. Different people presented the budget every year presenting different policies which hurt investor sentiment,” the finance minister said, adding that his government had begun repairing the economy by taking the tough decisions that were the need of the hour.
Following the national assembly session, PM Shehbaz Sharif took to Twitter to stress his views before the nation over the fiscal year 2022-23 Budget.
“These are difficult times brought upon us by recent years of economic mismanagement. Through this budget, my government will steer our way out of these challenges by taking tough decisions while minimising [the] impact on vulnerable segments of [the] population,” he said.
These are difficult times brought upon us by recent years of economic mismanagement. Through this budget, my govt will steer our way out of these challenges by taking tough decisions while minimising impact on vulnerable segments of population.— Shehbaz Sharif (@CMShehbaz) June 10, 2022
The key proposals presented in the budget:
- Petroleum levy of Rs750bn proposed
- No tax on salaries of up to Rs100,000 per month; previously minimum taxable salary was Rs50,000/month
- Taxes proposed on real estate holdings (property valued over 25m) and capital gains on property sale
- The minimum tax bracket for small business persons to be raised from Rs0.4 million to Rs0.6m
- 15pc increase in salaries of government employees
- Sales tax exemption on import of solar panels and distribution
- Advance withholding tax will be collected from those sending remittances abroad via credit, debit, and pre-paid cards
- Advance tax will be increased on cars above 1,600cc
- Exemption of complete custom duty on pharmaceutical ingredients
- Rs51bn proposed for education projects
- Rs24bn for the health sector
- People earning an annual income of Rs300 million or more per year are proposed to pay 2pc extra tax
- Advance 2pc tax on the value of high-value hybrid and electric vehicles.
Federal Budget 2022-23 at a glance:
The breakup of resources and expenditures:-
Total Resources (I to V): Rs. In Billion: 9,502
(FBR) – Federal Consolidated Fund: 7,004
Non-Tax Revenue: 2,000
a) Gross Revenue Receipts: 9,004
b) Less Provincial Share: 4,100
I.Net Revenue Receipts (a-b): 4,904
II. Non-Bank Borrowing (NSSs & Others) – Public Account: 1,996
III. Net External Receipts – Fed. Consolidated Fund: 533
IV. Estimated Provincial Surplus: 800
V. Bank Borrowing (T-Bills, PIBs, Sukuk) – Fed. Consolidated Fund: 1,172
VI. Privatization Proceeds – Fed. Consolidated Fund: 96
Total Expenditures: Rs. In Billion: 9,502
A. Current: 8,694
Interest Payments: 3,950
Defense Affairs & Services: 1523
Grants and Transfers to Provinces & Others: 1,242
Running of Civil Govt: 550
Provision for Disaster / Emergency Covid: 100
Provision for-pay & Pension: 100
B. Development: 808
Federal PSDP: 727
Net Lending: 81