May 292010

Pakistan is due to announce its budget for fiscal year (FY) 2010-11 (July-June) on June 5. Following are details of the budget that have been announced and media reports on its likely contents.

Macroeconomics: The government expects gross domestic product (GDP) to grow by 4.5 percent in FY 2010-11 beginning on July 1 as compared with 4.1 percent forecast for FY 2009-10.

Agriculture growth in the next fiscal year is targeted at 3.8 percent, manufacturing
growth at 5.6 percent and service sector
growth at 4.7 percent.

Inflation for FY 2010-11 is targeted at 8 percent, compared with the central bank’s forecast of between 11 percent and 12 percent for FY 2009-10.

The government is aiming for a fiscal deficit in FY 2010-11 of between 4 percent and 4.2 percent of GDP, compared with an earlier forecast of 5.1 percent.

The National Economic Council (NEC) has approved Rs 663 billion for FY 2010-11 for the Public Sector Development Programme 2010-11.

The government has finalised proposals for collecting Rs 1.65 trillion in taxes during FY 2010-11.

Taxes, duties and subsidies: The government has decided to eliminate subsidies on power, fertilizer and sugar in the budget for the next fiscal year.

The government has decided to eliminate five types of subsidies for the next fiscal year. This includes a subsidy on the power tariff, a power tariff subsidy for tubewells in Balochistan province, a tariff differential subsidy, a subsidy on sugar and a subsidy on fertilizer, from July 1.

The government is expected to announce the replacement of general sales tax with a 15 percent value-added tax in the budget.

The government is expected to impose capital gains tax on the purchase of stocks made on or after July 1.  reuters

 Posted by at 6:03 pm

  One Response to “Pakistan’s 2010-11 budget – what to watch for”

  1. since independance no leadership or Govt: in Pakistan came to the rescue for the solution of problems of poor masses of the country.All the top leadership has been in practice of looting the treasury of Pakistan.When General Mushraf took over he blamed Nawaz Sharif and Co.for looting Pakistan.He became friend of Nawaz Sharif companions and fooled poor masses for 11 years.When the present Govt;of Rotee Kapra Makaan came the blamed the previous Govt: for the present crisis in every walk of the Country.Who is thief? I think we are ruled by theives as they blame oneanther and rule the foolish masses,as they do not want do the accountantibility of previous masters,as they all share corroption in every walk of pakistan.May Allah bring disaster on all our thief and corrupt leaders(Amin)

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