Dar to present Rs4.772 trillion budget today

ISLAMABAD: In a bid to strike a balance between pressing requirement for spending spree to lure political sympathies of voters on eve of next general elections as well as maintaining hard-earned economic stability at the same time, Finance Minister Ishaq Dar will present the budget 2017-18 in parliament today (Friday) for achieving these two objectives simultaneously in the presence of expected deafening voices of opposition benches.

The finance minister is all set to use fiscal measures for discouraging rampant rise in imports so the government through Finance Bill 2017-18 will increase Regulatory Duty (RD) on 400 items as major revenue ticket item under Statutory Regulatory Order (SRO) 568 whereby the duty will go up by 50 to 100 percent on these items. The government claims that these items are being used by rich and affluent segments of the society so duty structure will be increased by 50 to 100 percent as if the RD is imposed at the rate of 5 percent it will be jacked up to 10 percent.

Such imported items included yogurt, cheese, curd, frozen mangoes, natural honey, Mineral waters, Aerated waters, Perfumes, Face powder, talcum powder, face and skin creams and lotions, hair lacquers, cream for hair, dyes for hair, waste and scrap of auto parts in pressed bundle condition, remelting scrap ingots, cooking ranges, for gas fuel or for both gas and other fuels, freezers of the chest type, not exceeding 800 l capacity, other furniture (chests, cabinets, display counters, show cases and the like) for storage and display, incorporating refrigerating or freezing equipment, water dispenser, electric oven, reception apparatus for receiving satellite signals of a kind used with TV (satellite dish receivers), reception apparatus for receiving satellite signals of a kind used with TV (Satellite dish receivers), wooden beds, wooden cabinets, electric table, desk, bedside or floor standing lamps, powder puffs and pads for the application of cosmetics or toilet preparations, scent sprays and similar toilet sprays, and mounts and heads therefore and vacuum flasks and many others.

On other hand, the government will enhance incentive package for exports and agriculture sector in order to reverse trade deficit as well as boosting growth trajectory by incentivizing the farmers.

Keeping in view upcoming elections in mind so popular measures will be used for luring voters, Mr. Dar is going to present fifth consecutive budget today, unveiling different incentive packages especially for exporters and farmers for achieving the objective to jumpstart economic activities for achieving higher and sustained growth trajectory. 

With expected outlay of Rs4.772 trillion, the government is eyeing to fix a highly ambitious FBR’s tax collection target of Rs4,015-4,020 billion for the budget 2017-18 in which the government will increase the cost of imports especially for luxury items through Finance Bill 2017-18.

On expenditures side, Pakistan’s budget revolves around 3Ds with major share of spending related to debt servicing then defense and finally the development expenditure side. The debt servicing is expected to consume over Rs1,500 billion, defense Rs940 billion and Public Sector Development Program (PSDP) at Rs1,001 billion including Rs866 billion for ministries/divisions and remaining for TDPs and PM’s special initiatives.