Today’s budget unveiling will reveal a deficit of Rs6tr.
Salary increases of 30% and pension increases of 20% are among the proposals for government workers.
ISLAMABAD:
On Friday (today), the cabinet will vote on a draft of the federal budget with a deficit of more than Rs6 trillion, and later in the day, parliament will vote on the budget.
It includes a proposal to levy new taxes totaling Rs700 billion. Budget expenditures are projected to reach Rs14.5 trillion overall. Ad hoc relief allowances for government workers are expected to increase by 30%, while pensions will increase by 20%.
It has also been proposed that government workers get a 100% raise in their medical and transportation benefits. The government has decided to aim for a deficit of 7.7% of GDP.
The anticipated amount of tax money to be collected is Rs9.2 trillion. The provinces will receive Rs2.8 trillion in revenue from the federal government, of which 55% will be handed to the FBR.
The budgeted amount of Rs950 billion for development by the federal government. New public-private partnership initiatives will cost an estimated 200 billion rupees to initiate.
A total of Rs1.55 trillion has been set aside for provincial development.
The proposed defense budget is R1.8 trillion.
In addition, the upcoming fiscal year will need the FBR to collect an extra Rs1.9 trillion.
The property market and corporate earnings, so the rumor goes, are in for some new taxation. It’s possible that taxes on fuel will go up even more. The proposed budget calls for a uniform sales tax rate of 18%.
On expensive items, the sales tax rate will be 25%. It has been recommended to raise tariffs on imported automobiles with engine displacements beyond 1,000 cc. Non-filers will now be subject to a tax rate of over 30% on their investments in mutual funds and real estate investment trusts.
An increase in the value-added tax on imported luxury products has also been recommended. It was also determined to increase the withholding tax for non-filers involved in the real estate industry by a factor of two.
There are now three options being considered in the budget that may affect government employee pay and benefits.
There has been a call for a doubling of government workers’ medical and transportation benefits.
In addition, it has been suggested that they get a one-time bonus of 10% of their current salary.
A 10% raise in pensions has been proposed. It has also been proposed to double the retirees’ health care subsidy.
The second plan would raise base pay for all federal workers by 25% and provide them new medical and transportation benefits.
It’s only fair to raise retirees’ medical benefit as well. In addition, pensions should be increased by 15%.
The third idea suggests raising worker pay by 30 percent across the board, from elementary school teachers to university researchers.
Officers in Grade 17 and above need a 20% pay raise.
It is appropriate to provide workers a raise of up to 50 percent in their medical and transportation benefits.
It’s time for a 20% raise in pensions. Additionally, retirees should get an increase in their medical benefit.
There have also been calls to raise the minimum wage and pensions from the Employees Old-Age Benefits Institution (EOBI).
With a national election slated for early November, the budget is under intense scrutiny as the administration tries to find a middle ground between the severe fiscal adjustment measures agenda set by the International Monetary Fund (IMF) and the needs of the people. (With help from many agencies)
