BUDGET-2009–10
FEDERAL BUDGET 2009–2010
On 13th June, 2009, Pakistan’s Minister of State for Finance Hina Rabbani Khar unveiled Federal Budget of Rs. 2.8974 trillion for 2009–10 in the National Assembly. which is 27 percent more than the current year’s total. The budget deficit at Rs. 722.5 According to the statistics, the budget estimates show a total outlay of Rs. 2.8974 trillion billion is estimated to be about 24 percent higher than the current estimate of Rs 582 billion. Thus, as percentage of GDP, the budget deficit will slightly go upto 4.9 percent against 4.3 percent during the previous budget. The net revenues amount to Rs. 1377.5 billion against the current expenditure of Rs. 1699.19 billion. The development expenditure (including provinces) is estimated at Rs. 783.1 billion. The Public Sector Development Programme has been doubled to Rs. 626 billion.
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The federal budget for 2009–10 shows the target for FBR tax revenue at Rs. 1372 spending on defence has been raised to Rs. 342.9 billion from Rs. 311 billion in previous billion about 16 percent higher than the revised estimates of Rs. 1179 billion. The year. The budget projects to transfer about Rs. 735.1 billion to the provinces as their share from the divisible pool. An amount of Rs. 31 billion has been allocated for the amount of Rs. 23.2 billion has been earmarked for the health sector showing on increase of 66 percent over the previous year (2008–09). Salient features of the budget are as education under:
sector which is 54 percent higher than current expenditure.
The budget shows a deficit of Rs. 722.5 billion with the total receipts expected at Rs. 2174.9 billion. The deficit will be met through external financing of Rs. 264.9 billion and domestic financing of Rs. 457.6 billion. Pakistan expects external resources of Rs. 178 billion from the pledges of Donor’s Conference in Tokyo and Rs. 48 billion for expenditure on Internally Displaced Persons.
The budget expects net revenues of Rs. 1377.5 billion with a current expenditure of Rs. 1699.19 billion.
An amount of Rs. 19.4 billion is expected through privatization whereas the bank borrowing will raise Rs. 144.6 billion.
An amount of Rs. 342.9 billion has been allocated for defence spending which exceeds the previous year’s allocation of Rs. 296 billion and actual expenditure of Rs. 311 billion.
Under the budget 2009–10, the education sector will get Rs. 22.5 billion.
An amount of Rs. 23.2 billion has been allocated for the health sector against Rs. 13.99 billion in the current year.
The target for FBR tax revenue has been fixed at Rs. 1.372 trillion which is 16 percent higher than the current year’s revised estimates of Rs. 1.179 trillion. Out of the total tax revenue, direct taxes are estimated at Rs. 565 billion and indirect taxes at Rs. 815 billion.
An amount of Rs. 646 billion has been allocated for the Public Sector Development Programme for 2009–10. This allocation includes the following amounts for various sectors:
(A) Federal Government Projects
(B) Allocation for Provinces
= Rs. 421 billion
= Rs. 200 billion
Under PSDP, the allocations are as under:
(i) Pakistan Atomic Energy Commission (ii) Communications Division
(iii) Ports and Shipping
(iv) Pakistan Railways
= Rs. 19.534 million = Rs. 45.972 million
= Rs. 828.8 million
= Rs. 12688 million
(v) Planning and Development Division
= Rs. 17968 million
= Rs. 45599 million
(vi) Finance Division (vii) Social Programmes (viii)Local Governments
= Rs. 35000 million = Rs. 444 million.
