Pakistan Tehreek Insaf (PTI) revealed its first annual budget for the fiscal year 2019-2020 but what are the major differences between this budget and the previous budget of PML-N of 2018-19?
The size of total budget is estimated to be Rs 7,036.3 billion from which the biggest share will go for interest payments of domestic and foreign loan.
These allocated expenditures of Federal government will reveal how different the current budget is from previous budget:
Expenditure | PMLN Budget 2018-19 (Billion) | PTI Budget 2019-20 (Billion) |
Interest on Debt | Rs. 1,987 Billion | Rs. 2,891 Billion |
Defence Affairs | Rs. 1,137 Billion | Rs. 1,152 Billion |
Development expenditure | Rs. 1,152 Billion | Rs. 843 Billion |
Running of Civil Government | Rs. 460 Billion | Rs. 431 Billion |
Higher education expenditure | Rs. 47 Billion | Rs. 45 Billion |
Health Expenditure | Rs. 37 Billion | Rs. 13 Billion |
Karachi Development | Rs. 25 Billion | Rs. 45.5 Billion |
Housing & Community Amenities | Rs. 2.3 Billion | Rs. 2.3 Billion |
Social Protection | Rs. 2.6 Billion | Rs. 190 Billion |
The government also increased the target of tax allocation through both direct and indirect taxes while reduced few taxes:
Tax | PMLN Budget 2018-19 | PTI Budget 2019-20 |
Corporate tax | 29% | 29% |
Sales Tax on Sugar | 8% | 17% |
Import of mobile phones | 3% | - |
Super Tax on Banking Companies | 4% | 3% |
Additional Customs Duty | 1% | 2% |
FED on cement | Rs.1.25/kg | Rs.1.50/kg |
Sales tax rate on import of finished articles of leather and textile | 6% | 9% |
Tax on undistributed profits | 7.5% | 5.5% |
Gold Jewelry | - | 1.5% |
Sales Tax on Finished Goods of Textile | - | 15% |
June 14, 2019