Federal Budget 2015-16 complete preview
Islamabad (Utvplus News): Federal Minister for Finance Ishaq Dar presented the Federal Budget 2015-16 with an total outlay of Rs 4491 billion in National Assembly Today.
Budget 2015-16 Preview:
Salaries of government employees.
- 7.5% increase in government employees salaries.
- All pensioners employees to get an increase of 7.5%.
- 7.5% ad-hoc relief announced for all government employees.
- 25% increase in medical allowance
- Special Ph.D allowance to be given worth Rs. 10,000
Special package for KPK
- Tax exemption for 5 years for all those setting up industry in KPK
- KPK will be allowed to do business with Afghanistan in Pakistani rupee.
- KPK will be given priority in tax refunds
Tax and subsidy updates
- 15% tax to be applied on the use of scientific tools.
- 10% income tax to be applied on electricity bills worth Rs. 75,000.
- Developing areas will be allocated 39.20 billion rupees.
- 0.1% advance tax to be imposed on shopkeepers.
- Minimum monthly wages increased to Rs. 13,000 from the previous 12,000 rupees
- 35% tax imposed on banks profits.
- 3%taxes imposed on non-filer businessmen.
- 6 billion rupees have been allocated for improvement in exports.
- Excise duty on cigarettes set at 63% with an increase of 5%.
- 0.6% taxes will be implemented on the bank transactions and business transactions of the non-filers.
- 7 billion rupees subsidy to be given for utility stores.
- 192 billion rupees will be transferred to the provinces.
- Remittances have been expected to increase by 1.9% for 2015-16.
- 700 billion rupees to be allocated for PSDP.
- 10% tax exemption to ocmpanies employing more than 500 people.
- Regulatory duty on mobile phones to be lifted.
- Income tax on 400,000 – 500,000 income set on 2%
- Rs.64.15 billion have been allocated for Textile industry.
- Agriculture loans are according to our targets and new target has been set to 6 billion rupees.
- Interest rate for export based businesses has been lowered to 4.5%.
Prime Minister s Youth Schemes
- 700 laptops have been assembled in the local laptop assembling plant while 70,000 laptops have been provided this year.
- 50,000 internships will be offered to the jobless youth having 16-year education
- Ph.D students will be given Rs. 10,000 allowance.
- Loans will be provided for setting up 30,000 tube wells during the next 3 years.
- More than 20,000 people have so far benefited from PM s Youth Loan Scheme.
- Defence budget has been raised to Rs. 780 billion with an increase of 11%.
- Rs. 100 billion have been allocated for security purposes and rehabilitation of the Temporarily Displaced Persons (TDP).
Education Budget 2015-16
- PM had announced to improve the educational budget to 4% by the end of tenure. We are still committed to our promise. Provincial governments will have to raise the educationbudget to 3.2% of the GDP and take it to 4% by the end of the tenure.
- 71.5 billion rupees have been allocated for Higher Education, which is being improved
Pakistan Railways Budget
- Rs. 78 billion have been allocated for the railways department and private and foreign investment is expected this year for Railways.
- 170 new engines will be bought this year for Pakistan Railways and 100 will be upgraded.
Special allocations for CP Economic Corridor
- Rs. 3.5 billion for new Gwadar International Airport and 3 billion rupees for water supply in Gwadar are being allocated.
- Pakistan has the capacity to connect the entire region. Therefore, we have allocated Rs. 185 billion for highways and roads construction with an increase of 65%. Lahore-Karachi Motorway is government s top priority.
Allocation for Power Projects
- Subsidy worth 92 billion rupees will be provided to WAPDA and PECO.
- KESC will be given subsidy worth Rs. 20 billion.
- Government will pay the mark-up on the loans for the solar-based tube wells.
- interest-free loans will be provided to the small farmers for solar-based tube wells.
- 11 billion dollars have been allocated for Neelum-Jehlum power project.
- 5 billion rupees have been allocated for Guddu Power Project.
- Biggest part of the budget has been devised for renewable and cheap energy. Government has set a target to almost eliminate load shedding by the September 2017.
- Diamir-Bhasha Dam is vital for the country. We have allocated 15 billion rupees for the acquiring of land for this project and Rs. 6 billion for constructing the first phase of this dam.
- Rs. 142.41 billion will be spent on power projects and 10,000 mega watts will be added into the system by 2017.