Pak deficit budget with Rs9.5tr outlay, Rs1,523 billion to be spent on defence
ISLAMABAD: Finance Minister Miftah Ismail on Friday unveiled the coalition government’s maiden budget with an outlay of Rs9.5 trillion for the fiscal year 2022-23 in the National Assembly.
While presenting the budget proposals in the lower house, Finance Minister Miftah Ismail blamed the past government and its “inexperienced team” for bringing the country to the verge of economic disaster.
The finance czar of the country said that the current budget focuses on “sustainable and inclusive growth.”
The minister said the government had to move towards “sustainable growth”, adding that the growth target for next year was set at 5%.
“The problem of our economy is that growth is 3-4%, but when it moves up to 5-6%, our current account deficit goes out of control, because we prioritise the elite and increase our imports to facilitate them. We need to adopt a new outlook focused on alleviating the lower-income sections of society to increase domestic production,” the minister said.
Addressing the Speaker of the National Assembly Raja Pervez Ashraf, Miftah assured the lower house that the new coalition government will pull Pakistan out of the economic crisis: “We have done it before, we can do it, we will do it.”
The finance minister further added that in the next fiscal year, the country has to improve the economic conditions of the poor by providing them with facilities.
“When the income of the poor increases, they purchase consumer goods which are produced locally. And this, in turn, reduces the exports and initiates the development process. We can achieve inclusive growth by taking the above-mentioned steps,” he said.
The finance minister further highlighted that Pakistan has become the third-most-expensive country due to the incompetency of the PTI-led government.
Miftah Ismail, while presenting the budget proposals, said that out of total Rs9.502 trillion budget, an amount of Rs2,950 billion had been allocated for debt servicing and Rs800 billion earmarked for the Public Sector Development Programme (PSDP 2022-23).
He said an amount of Rs1,523 billion had been earmarked for defence expenditures, Rs550 billion for civil administration and Rs530 billion for pensions. Similarly, Rs699 billion had been proposed for providing targete subsidies to the poor segments of society.
Miftah said that owing to the high petroleum prices, people earning less than Rs40,000 will be given relief of Rs2,000 per month, which will continue in FY23 budget as well.
He said that taxes will be imposed on goods that are mainly consumed by the rich to provide relief to the common man. The finance minister said that the federal government has established pension fund and released Rs10 billion for it.
Highlights of PSDP 2022-23
Following are the highlights of allocations under the Public Sector Development Programme (PSDP) for various ministries and divisions for the fiscal year 2022-23 announced by the Federal Government here Friday:
- Total outlay of the PSDP for the fiscal year 202122 is Rs 2.263 trillion
- The share of federal PSDP is Rs 800 billion while that of provincial PSDP is Rs 1.146 trillion.
- Rs 2,484.871 million has been earmarked for Aviation Division.
- Board of Investment will get Rs 807.500 million.
- Rs 70,058.816 million has been earmarked for Cabinet Division.
- –The Climate Change Division will get Rs 9,600 million.
- Rs 1,174.440 million has been set aside for Commerce Division.
- Rs 180 million are allocated for Communication Division (other than NHA).
- Rs 2,232.090 million has been earmarked for Defence Division.
- Rs 2,200 million has been set aside for Defence Production Division.
- Rs 900 million are allocated for Establishment Division.
- The Federal Education and Professional Training Division will get Rs 7,239.597 million.
- Rs 1,659.997 million has been allocated for Finance Division.
- Rs 135855.627 million has been earmarked for Provinces and Special Areas.
- The Higher Education Commission (HEC) will get Rs 44,178.907 million.
- Rs 13,985.204 million has been earmarked for Housing and Working Division.
- Rs 184.682 million will be provided to Human Rights Division.
- Rs 2,850 million has been set aside for Industries and Production Division.
- Rs 2,100 million are allocated for Information and Broadcasting Division.
- Rs 6,330.696 million will be provided to Information Technology and Telecom Division.
- Rs 3,472.420 million has been set aside for Inter-Provincial Coordination Division.
- Rs 9,093.009 million has been granted for Interior Division.
- Rs 1,813.892 million has been earmarked for Law and Justice.
- Rs 3,465.378 million has been allocated for Maritime Affairs Division.
- Rs 207.917 million has been granted to Narcotics Control Division.
- Rs 10,129.134 million has been earmarked for National Food Security and Research Division.
- Rs 12,650.997 million has been allocated for National Health Services, Regulation & Coordination Division.
- Rs 550 million has been provided for National Culture and Heritage Division.
- Rs 25,990.602 million has been earmarked for Pakistan Atomic Energy Commission.
- Rs 289.890 million has been set aside for Pakistan Nuclear Regulatory Authority.
- Rs 1,480.509 million has been earmarked for Petroleum Division.
- Rs 42,176.535 million has been allocated for Planning, Development and Special Initiatives Division.
- Rs 500 million has been allocated for Poverty Alleviation and Social Safety Division.
- Rs 32,648.036 million has been set aside for Railway Division.
- Rs 600 million has been allocated for Religious Affairs and Interfaith Harmony Division.
- Rs 3,188.639 million has been earmarked for Revenue Division.
- Rs 5,716.394 million has been earmarked for Science and Technology Research Division.
- Rs 7,395.01 million has been earmarked fr SUPARCO.
- Rs 99,572.465 million has been allocated for Water Resource Division.
- Rs 118,403.402 million has been set aside for National Highway Authority.
- Rs 43,133.262 million has been allocated for NTDC/PEPCO.
- Rs 500 million for ERRA.
- Rs 73,000 million for Viability Gap Fund (VGF).