Understanding Pakistan's Federal Budget 2024-25

Summary

The video script discusses the Federal Budget 2024-25 for Pakistan, highlighting a total budget of 18.9 trillion rupees with a GDP growth target of 3.6%. The budget focuses on increasing tax revenue to 40% and non-tax revenue above 3.5%. It allocates 21.22 billion for defense, emphasizing economic challenges and achievements. The script also covers tax policy reforms, including progressive tax rates and measures to tackle inflation, which is targeted to be controlled at 12%. Additionally, it discusses public sector development programs, with a 40% increase, and the government's strategy to improve the economy through savings, investment, and fiscal austerity.

Takeaways

• 📈 The federal budget for Pakistan for 2024-25 has been presented, aiming to project economic growth with a GDP target set at 3.6%.
• 💼 Finance Minister Mohammad Andleeb presented a total budget of PKR 18.9 trillion, focusing on various sectors including defense and debt servicing.
• 🔼 A significant emphasis on tax revenue collection, with a target set at PKR 1 trillion, which is a 40% increase from the previous year's target.
• 🛡️ Defense expenditure is a priority, with an allocation of PKR 2122 billion, reflecting a 17.6% increase from the previous year.
• 💼 The budget deficit is projected at 6.9%, indicating the government's intention to manage fiscal gaps within the projected income and expenditure.
• 💹 Measures are proposed to boost revenue generation, including increased taxes on petroleum products, mobile phones, and tobacco, aiming to collect more from the public.
• 🌱 An emphasis on economic reforms, with a focus on privatization of state-owned enterprises and regulatory reforms to attract investment and improve economic outlook.
• 💼 The IMF's guidelines and economic alignments are considered in the budget, with a commitment to long-term economic programs and fiscal consolidation.
• 📉 The devaluation of the Pakistani Rupee and a decrease in foreign reserves are noted, with the budget reflecting strategies to deal with these economic challenges.
• 🏛️ Public sector development programs, including those for health and renewable energy, are allocated significant funds, with an overall PSDP allocation of PKR 3792 billion.

Q & A

What is the total amount allocated for the Federal Budget 2024-25 in Pakistan?

The total amount allocated for the Federal Budget 2024-25 in Pakistan is 18.9 trillion rupees.

What is the GDP growth target set for the fiscal year 2024-25?

The GDP growth target set for the fiscal year 2024-25 is 3.6%.

What is the tax revenue target for the Federal Budget 2024-25?

The tax revenue target for the Federal Budget 2024-25 is set at 1 trillion rupees.

What is the projected deficit for the Federal Budget 2024-25?

The projected deficit for the Federal Budget 2024-25 is 6.9%.

How much is allocated for debt servicing in the Federal Budget 2024-25?

For debt servicing, 9.8 trillion rupees are allocated in the Federal Budget 2024-25.

What is the amount allocated for defense in the Federal Budget 2024-25?

The amount allocated for defense in the Federal Budget 2024-25 is 2122 billion rupees.

What is the target set for non-tax revenue in the Federal Budget 2024-25?

The target set for non-tax revenue in the Federal Budget 2024-25 is above 3.5 trillion rupees.

What is the expected increase in the minimum wage for government employees in the Federal Budget 2024-25?

The expected increase in the minimum wage for government employees in the Federal Budget 2024-25 is from 31,000 to 37,000 rupees.

What is the proposed tax rate for individuals earning above 6 million rupees per annum in the Federal Budget 2024-25?

For individuals earning above 6 million rupees per annum, the tax rate is proposed to increase progressively from 15% to 45% in the Federal Budget 2024-25.

What is the target set for inflation control in the Federal Budget 2024-25?

The target set for inflation control in the Federal Budget 2024-25 is 12%.

What incentives are being provided in the Federal Budget 2024-25 to promote renewable energy?

In the Federal Budget 2024-25, significant tax relief is being provided for solar panels, batteries, inverters, and other related renewable energy products to promote renewable energy.