Budget 21-2020: Deficit budget of over 34 trillion, increase in defense budget by 11.8%, 'no increase in salaries'

The second annual budget of the PTI government has been presented in Pakistan today which is a budget of 34 trillion 37 billion deficit.

Federal Minister for Industries and Production Hamad Azhar presented budget proposals that did not impose any new taxes, but did not increase the salaries of government employees.

It has been proposed to set aside Rs 470 billion for pensions, an increase of 1.3 per cent over last year's revised budget.

Compared to last year, the defense budget for the current financial year has been increased by 11.8 percent, but this is an increase of 61 billion in the revised budget presented last year.

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Opposition parties raised banners with anti-government slogans during the budget speech and rioted during the meeting.

Rs 650 billion has been allocated for the public sector development program for development purposes in the country.

The total estimate of this budget is Rs. 65.73 trillion out of which FBR revenue is Rs. 49.63 trillion while unpaid revenue is proposed to be Rs. 16.10 trillion.


Similarly, customs duty on 61 items related to corona virus has been abolished while duties and taxes on corona and cancer diagnostic kits have been abolished.
This year, the FBR's tax collection target is proposed to be Rs 49.63 trillion.

Last year, Rs 187 billion was earmarked in the budget for the Ehsas program, which has been increased to Rs 208 billion, including other social security programs such as the Benazir Income Support Program, Pakistan Bait-ul-Mal and other departments.

It is also proposed to allocate Rs. 28.74 trillion for the provinces under the NFC award.

The Federal Minister said that Rs. 10 billion has been earmarked for providing relief in the agricultural sector and prevention of locust heart.

Defense budget increased by 11.8%
The defense budget initially proposed last year was 11 11.52 trillion, which was later revised to کھ 12.27 trillion later that year.

However, this year this amount has been increased to 12.89 trillion.

Thus, this is an increase of 11.8% in the amount allocated in the initial budget for the year 2019-20.


Opposition parties waved banners with anti-government slogans during the budget speech and caused a commotion during the meeting.
Education and health
The government has given Rs 64 billion to HEC for higher education, an increase of Rs 5 billion over the previous year.

Preparation of uniform curriculum, standard system, formulation of examinations, establishment of smart schools, inclusion of madrassas in the national mainstream will improve the education system, for which funds have been allocated and Rs. 5 billion for these reforms. Has been allocated.

Hamad Azhar said that in order to meet the standard education of the 21st century, research and other advanced fields such as artificial intelligence, robotics, automation and space technology can be worked for research and development, so innovation in the field of education and Rs 30 billion has been allocated for this achievement.

Prevention of corona virus and other disasters
The Federal Minister said that the government has formulated a special development program for eliminating the negative impact of Corona and other disasters on human life and improving the quality of life for which Rs. 70 billion has been allocated.

Similarly, customs duty on 61 items related to corona virus has been abolished while duties and taxes on corona and cancer diagnostic kits have been abolished.

Sales tax exemptions on Corona-related public health items have also been extended by three months, while customs duty on life-saving drug Magellan Anti-Moneti has been abolished.

He further said that in view of the financial crisis caused by the corona virus, the PSDP would allocate 73 per cent for ongoing projects and 27 per cent for new projects to avoid cost overruns.


The FED on caffeinated imported and local beverages has been increased from 13% to 25%
What items have gone up in price?
According to the budget documents, the FED on imported cigarettes, electronic cigarettes, irons, cigars and other tobacco products has been increased by 35%.

The FED on caffeinated imported and local beverages has been increased from 13% to 25%.

At the same time, FED has been implemented on double cabin pick-up and it has been proposed to tax it as per other vehicles.

It is also proposed to reduce inflation from 9.1 per cent to 6.5 per cent.

Economic Financial Survey 20-2019
Earlier on Thursday, while presenting the Economic Financial Survey 2019-20 in Islamabad, Finance Advisor Dr Hafeez Sheikh said that the present government had inherited the economic crisis.

He said that before the Corona epidemic, the economic growth rate was expected to exceed 3%, but the GDP growth rate in the financial year 2019-20 has been negative 0.4%.

He said that in the current financial year, the growth rate in the agricultural sector was 2.67 per cent while the industrial sector was affected and the growth rate was minus 2.64 per cent while in the services sector it was minus 3.4 per cent.

The federal government claims that the budget presented by them today
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