Last update: Wed, 07 Dec 2016 07pm

Budgets: 2010-11


The government on Saturday announced a consolidated budget outlay of Rs 3.259 trillion for next fiscal year, with 4 percent budget deficit, and what the Federal Finance Minister was careful to refer to as deferring the reforms of GST, understood by the galleries as reluctant to use the three-letter word ''VAT'', till October 1, 2010 instead of July 1, 2010, but increased the GST from existing 16 to 17 percent.
The government has increased defence allocations in 2010-11 budget by Rs 99,260 million to Rs 442.1 billion as compared to the Rs 342.9 billion defence allocations of on-going fiscal year, mainly due to military operations against terrorists.
The government has earmarked Rs 663 billion for development in the 2010-11 budget, which envisages Rs 280 billion federal and Rs 373 billion provincial share. According to budget documents, Rs 10 billion has been earmarked for Erra for financial year 2010-11.
The government has targeted 4.5 percent GDP growth rate for the financial year 2010-11, with the following sectoral contributions: agriculture 3.8 percent, manufacturing 5.6 percent, and services sector 4.7 percent. The production targets of wheat and rice have been set at 25 million tons and 6.2 million tons, respectively, for 2010-11.
10 percent tax credit on BMR & Expansion between fiscal year 2010-2015
Privatisation as an economic tool to lower the haemorrhaging of the Budget still needs a political consensus within the Pakistan People''s Party as nil inflow from privatisation process has been shown in the 2010-11 budget documents.
In a bid to decrease the cost of vegetable ghee and oil, the government has reduced customs duty on crude palm oil by Rs 1000 per metric ton from Rs 9000/MT to Rs 8000/MT. The duty structure on the import of old and used cars, re-conditioned vehicles and other cars has not been changed.