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- June 12, 2024
- Kainat Shakeel
- 0
ISLAMABAD: The relief-focused Rs18.877 trillion federal budget for the fiscal year 2024–25 was released on Wednesday by Senator Muhammad Aurangzeb, Minister of Finance and Revenue. The Finance Minister stated that the GDP growth target for the fiscal year 2024–25 is set at 3.6 percent, while the inflation rate is anticipated to stay at 12 percent while presenting the federal budget 2024–25 to the National Assembly. He stated that the primary surplus is predicted to be 1.0 percent of GDP, while the budget deficit to GDP for the period under review is forecast to be 6.9 percent. The minister stated that the Federal Board of Revenue expects to collect Rs12,970 billion in revenue during the upcoming fiscal year. The minister further stated that tax revenue collection increased by 38% during the current fiscal year, with the province contributing Rs 7,438 billion.
In contrast to the federal government’s projected net income of Rs 9,119 billion, he stated that the federation’s non-tax revenue projections are set at Rs 3,587 billion. The federal government’s total outlays are projected to be Rs18, 877 billion, with interest payments accounting for the remaining Rs 9,775 billion. The government stated that an additional sum of Rs100 billion would be granted under the Public Sector Development Program in addition to the Rs1, 400 billion already budgeted for this program in the current budget.
He said that with an overall budget of Rs. 1,500 billion, this year’s development budget was the largest in the nation’s history. The minister announced that the government would set aside Rs. 839 billion for civil administration and Rs. 2,122 billion for defense. A further Rs1.014 trillion is allocated for pension costs, in addition to the Rs1.363 trillion already allocated for subsidizing gas, electricity, and other industries. According to the Finance Minister, a total of Rs1,777 billion in funds have been set aside for the development of the IT, railway, BISP, AJK, Gilgit-Baltistan, merging districts of KP, and HEC.
The government has announced a historic federal PSDP valued at Rs1,500 billion, according to the finance minister. This amount is greater than 101% of the amended PSDP from the previous year. According to him, the government has increased budgetary allocations despite financial constraints, which will assist in raising the standard of living for the populace and develop the amount of infrastructure, including electricity, water, transportation, and IT resources. According to Senator Aurangzeb, the PSDP for 2024–25 places a specific emphasis on completing ongoing projects, allocating 83% of the funds for this purpose and 17% for new development initiatives.
It is suggested that 20% of resources be allocated to the social sector and 59% of resources be used for infrastructure development during the 2024–25 fiscal year. The government has allotted between 10 and 11 percent for the development of other sectors, like as IT, telecom, science and technology, governance, and the manufacturing sector, to achieve equitable development in AJK, GB, and the combined districts of the KP. The government has incorporated initiatives to boost export-oriented industries’ productivity to increase their competitiveness and expand the nation’s digital infrastructure.
According to Senator Muhammad Aurangzeb, the government is also placing a high priority on the growth of the transportation industry and is committed to enhancing the system of roads and highways to increase city connectivity and manage the volume of growing traffic. To meet the rising energy demands, he added that building hydropower dams, installing solar power plants, and installing transmission lines would all be important aspects of modernizing and expanding the energy infrastructure. In addition, he said that special emphasis would be given to flood control, irrigation system improvisation, water resource management, and securing the availability of potable water through the construction of dams.
The minister stated that these initiatives will help to enhance transportation, energy, infrastructure, and overcome obstacles to create economic growth, all of which would eventually contribute to raise citizens’ standards of living. According to Aurangzeb, the PSDP proposed allocating Rs824 billion for infrastructure development for the upcoming fiscal year, of which Rs253 billion would be spent on the energy sector, Rs279 billion on transportation and communication, and Rs206 billion on the development of the water sector. According to him, the budget also included proposals to set aside Rs 86 billion for housing and planning, Rs 280 billion for social sector development, and Rs 75 billion for AJK and GB.
According to the Finance Minister, the government also places a high priority on skill development and makes special funding available for it. This is especially true for training the vast majority of the county’s youth to increase employment prospects. As the nation’s megacity and a major economic driver, Senator Aurangzeb stated that a unique package is being recommended for Karachi’s development. He also stated that this package is a requirement for starting a comprehensive program to modernize the city’s fundamental infrastructure. He stated that in addition to planning projects for the development of other cities like Mirpur Khas, Hyderabad, Sukkhar, and Benazir Abad, steps are also recommended for the delivery of drinking water in Karachi City under the K-4 project.
The minister stated that a comprehensive strategy was developed to give the residents of Islamabad, Rawalpindi, AJK, KP, and other districts access to the newest and greatest medical treatments, all under the prime minister’s command to improve their health facilities. To guarantee that the public has access to cutting-edge medical services, a proposal was received to build the Quaid e Azam Health Tower at the Pakistan Institute of Medical Sciences hospital.