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The moment is here, the most awaited time that all of us were waiting and the time that kept us on hold and that is the Budget 2024-25. And while so many of us have various views regarding it, here is a deep analysis of what the Budget of 2024 is going to offer us.
Let’s begin!
What Is The Federal Budget 2024-2025?
#WhatIsTheFederalBudget2024-2025
Finance Minister Muhammad Aurangzeb Wednesday announced and presented the federal budget for 2024-2025 with a total outlay of Rs.18.887 trillion in the National Assembly session while there was a lot of chatter from the opposition, the budget 2024 however was still announced.
The government set an ambitious Rs13 trillion tax collection target aiming for 3.6 percent growth in the GDP growth. The budget 2024 deficit is projected at 6.9 per cent of GDP. The finance minister said that total expenditure is estimated to be Rs 18.9 trillion.
The total outlay of the budget 2024 will be around 18 trillion which is expected to be 30 per cent more than last year. There was clear dismissal from the part of the opposition as some members of the opposition chanted their disapproval of the budget and expressed their dismay.
More And More Loans
We were initially surprised when we heard that the government wouldn’t be borrowing any money this time, but that happiness was short-lived. It happened to be that the government will be borrowing 932 billion dollars for projects like external funding and for some development initiatives which are dependent on external funding and therefore are borrowing money.
Growth And Development Projects
This budget 2024 aims to work on some of the projects that are aimed to give robust growth to the country’s GDP. This growth is aimed to be around 3.6 per cent of the GDP. With industrial development and agriculture, developments are set at 14.4 per cent and 2 per cent.
This development budget 2024 is allocated at Rs 837 billion with key allocations including Rs 237 billion for energy, Rs 279 billion for communication, and education which is around Rs 93 billion. Additional funds are allocated for merged districts which is Rs 64 billion. For Azad Kashmir and Gilgit Balochistan, the budget allocated is Rs 75 billion.
IT And Telecom Sector
This time the government aims to grow the IT structure of the country and for that, the overall budget 2024 of the IT sector is allocated to be around Rs 21 billion, totalling around 27.43 billion. These actions will be distributed around Rs 21 billion for some of the current and ongoing projects, and some Rs 6.28 billion for new and upcoming initiatives.
Digital economy projects include Rs 3.5 billion IT parks in Karachi includes Rs 6.78 billion and the technology park in Islamabad includes around 9.92 billion. The government further aims to grow the IT sector.
Incentives For Government Workers
#IncentivesForGovernmentWorkers
As expected and predicted, the overall pay of the government will be increased to 10-15 per cent this year, while farmers will also be getting pensions and increased salaries with pensions.
Annual Income Tax
As far as the tax is concerned, the tax will be applied to salaried and non-salaried people and the annual tax exemption may increase from Rs600,000 to Rs900,000. The annual target that is set up for this year is Rs 13,000 billion.
Defence Budget
The federal government has allocated Rs 12.22 billion for the defence budget for the years 2024-2025. This year’s defence budget includes an increase of approximately 14.4 per cent from last year’s allocation.
Import Tax On Solar Panel
#ImportTaxOnSolarPanel
The government has exempted tax on solar panel energy, this was mainly done so that raw materials and the solar energy sector in Pakistan are promoted. This was also done so that machinery, solar panels, and inventories in Pakistan were promoted.
Pension Scheme 2024-2025
For this year, the pension scheme will be brought into the existing pension scheme with some of the initiatives. This also means that pension will be reduced and that it will be cut from the monthly salaries. There is nothing new in this scheme in our opinion.
Our Opinion
This year’s budget is one of the most debated budgets of all time and we think that some sectors deserve more regarding allocating money. This includes education as well.
However, there were prominent gains as well. We expect robust growth in the industrial sector, agriculture sector, Promotion of energy, and boosting IT sector.
However, on the other hand, there were a few things that the budget missed which include the current financial crisis, the budget is also insufficient in discussing the problem of expanding taxes, investing in education and human development.
In the end, we believe that some areas need more focus and consideration which the budget fails to recognise.
