Positives

1.    Transfers to the provinces from the federal divisible pool have been estimated at Rs1,459 billion – almost 20% higher than the outgoing year’s estimates of Rs1,233 billion.
2.     20% increase in salaries and pensions of federal government employees.
3.     Minimum pension increased from 3,000 to Rs3,600
4.     Rs900 million set aside for the Thar Coal Gasification project to develop another source of cheap electricity generation.
5.    Pakistan Atomic Energy Commission’s budget increased by a whopping 78% to Rs39.2 billion in a bid to up the ante on nuclear power plants for cheaper electricity.
6.     Different rates of general sales tax abolished and a uniform GST of 16% imposed.
7. Allocation of Rs15.8 billion for the Higher Education Commission despite the fact that the subject of education has now been devolved and the provinces are now expected to spend from their own resources.
8. Priority given to the water sector and the allocated funds increased to Rs47.192 from Rs36.136 billion.
9. More increase in provincial share of the PSDP in comparison with the federal share, since the latter is traditionally slow in spending and a lot of allocated funds go unutilised.
10. For salaried employees, income tax exemption limit increased from Rs350,000 to Rs400,000.
11. Withholding tax ceiling for cash withdrawl from banks enhanced from Rs.25,000 to Rs.50,000.
12. Allocation for the Benazir Income Support Programme increased to Rs70 billion from Rs50 billion.
13. Rs183 billion to be spend on overcoming the worst energy crisis being faced by the country.
14. Subsidy of Rs134 billion for WAPDA and PEPCO.
15. The maximum rate of custom duty brought down to 30% and Federal Excise Duty (FED) on 10 more items abolished.

Winning Ministries

1.    Inter Provincial Coordination Division: Allocation increased to Rs195 million from Rs70 million.
2.    Housing and Works Division: Allocation increased to Rs2.6 billion from Rs1.4 billion.
3.    Pakistan Atomic Energy Commission: Allocation increased to Rs39.2 billion from Rs22.0 billion.
4.    Railways Division: Allocation increased to Rs22.9 billion from Rs15.0 billion.
5.    FATA: Allocation increased to Rs16 billion from Rs10 billion.
6.    Commerce Division: Allocation increased to Rs653.8 million from Rs425 million.
7.    Textile Industry Division: Allocation increased to Rs227 million from Rs150 million.

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