MetaBOT at 18:08, 8 July 2023

2023-07-08T18:08:55Z

New page

{{Use dmy dates|date=November 2020}}
{{Infobox Government Budget
| title = Federal budget of Pakistan
| year = 2014
| country = Pakistan
| previous_budget = 2013 Pakistan federal budget
| previous_year = 2012–2013
| next_budget = 2015 Pakistan federal budget
| next_year = 2014–15
| image = File:State emblem of Pakistan.svg
| imagesize = 100px
| caption = Emblem of Pakistan
|
| deficit =6.3% of the GDP
| total debt =
| bill =
| bill_link =
| url = [http://www.finance.gov.pk/ Ministry of Finance]
| below =
}}

The '''Federal Budget 2013–14'''<ref name="Ministry of Finance publications">{{cite web|last1=et. al. PD|first1=Public Domain|title=Federal Budget 2013–14|url=http://www.finance.gov.pk/fb_2013_14.html|website=Government of Pakistan|publisher=Ministry of Finance publications|accessdate=14 October 2014}}</ref> was the [[Government budget|federal budget]] of [[Pakistan]] for the [[fiscal year]] beginning from 1 July 2013 and ending on 30 June 2014. The budget was presented by Finance Minister [[Ishaq Dar]] on 12 June 2013 during a session of the [[National Assembly of Pakistan|National Assembly]]. This is the first federal budget presented during the tenure of newly elected Prime Minister [[Nawaz Sharif]] and his [[Cabinet of Pakistan|cabinet]] since the change of government following the nationwide [[2013 Pakistani general election|general elections]] held in 2013.

The new budget has an outlay of [[Pakistani rupee|₨.]] 3.51 [[Trillion (short scale)|trillion]] and is designed to achieve a 4.4% [[GDP growth|growth rate]] in the [[Economy of Pakistan|economy]] over the next fiscal year. The budget seeks to address the country's [[Energy in Pakistan|energy crisis]], reduce non-development expenditures and bring about a range of new economic policies of the elected government.<ref>{{cite news|url=http://tribune.com.pk/story/562138/economic-plans-govt-set-to-unveil-rs3-5tr-budget-today/|title=Economic plans: Govt set to unveil Rs 3.5tr budget today|work=The Express Tribune|date=12 June 2013|accessdate=12 June 2013|first=Irfan|last=Ghauri}}</ref> The government has termed the budget as "an investment and business friendly budget."<ref name="geo">{{cite news|url=http://www.geo.tv/GeoDetail.aspx?ID=104921 |title=Govt unveils 'business friendly' budget for FY 2013–14 |work=GEO News |date=12 June 2013 |accessdate=12 June 2013 |url-status=dead |archiveurl=https://web.archive.org/web/20130615005302/http://www.geo.tv/GeoDetail.aspx?ID=104921 |archivedate=15 June 2013 }}</ref>

Although no new property taxes were levied in Federal Budget but the provincial Punjab Budget 2013–14 imposed new taxes on property. Property sellers were made liable to pay a fixed percentage of tax which decreases as the retention period increases.<ref>[http://tribune.com.pk/story/569419/budget-2013-14-punjab-assembly-passes-finance-bill-tax-target-set-at-rs126-7-billion/ Budget 2013–14: Punjab Assembly passes Finance Bill, tax target set at Rs126.7 billion]</ref> Despite imposition of the heavy [[Taxation in Pakistan|taxation]], country's leading economists and financial experts believe it won't hamper the growth of the booming property market of Pakistan.<ref>{{Cite web |url=http://blog.zameen.com/new-property-taxes-wont-hamper-the-growth-of-pakistans-realty-sector-reports-zameen-com/ |title=New property taxes won't hamper the growth of Pakistan's realty sector, reports Zameen.com |access-date=8 July 2013 |archive-url=https://web.archive.org/web/20130712013345/http://blog.zameen.com/new-property-taxes-wont-hamper-the-growth-of-pakistans-realty-sector-reports-zameen-com/ |archive-date=12 July 2013 |url-status=dead}}</ref> The budget also allocates [[Pakistani rupee|₨.]] 57.4 billion for development of various areas in [[Higher Education Commission (Pakistan)|higher education]]— highest in the [[history of Pakistan]].<ref name="Express Tribune">{{cite web|last=Rizwan-ul-Haq|title=Budget 2013–14: Higher education gets attention, finally|url=http://tribune.com.pk/story/562592/budget-2013-14-higher-education-gets-attention-finally/|work=13 June 2013|publisher=The Express Tribune|accessdate=7 September 2013}}</ref>

==Federal expenses and revenues==

Initial [[finance|financial calculations]] were aimed towards the budget makers with an ambitious target by the incoming [[PML-N]] government to bring down next year's fiscal [[Government budget deficit|deficit]] by about 2.50% of [[GDP growth|GDP]] through a combination of [[Federal Board of Revenue (Pakistan)|revenue]] and [[Public expenditure|expenditure]] control measures of over [[Pakistan Rupee|₨.]] 550 billion. With an interaction with Dar, the senior economists and officials of the [[Ministry of Finance (Pakistan)|Finance ministry]] gave out an understanding that current year's budget deficit would be restricted within 7.5[[Prime cost|pc]] of GDP or less than [[Pakistan Rupee|₨.]] 1.8 trillion. Instructions were given to bureaucrats by Dar that the deficit to be scaled down by about 2.5[[Prime cost|pc]] of GDP and desired the budget makers to design next year's budget on those lines.<ref name="Beta dawn news, June 2013">{{cite news|last1=Kiyani|first1=Khaleeq|title=Dar wants "fiscal gap" to be cut by 2.5pc|url=http://www.dawn.com/news/1015494|work=Geo Television Network|agency=Geo News|publisher=Beta dawn news, June 2013|date=2 June 2013}}</ref>

Total revenue target for 2013–14 was [[Pakistan Rupee|₨.]] 3.42 billion including share of provinces of [[Pakistan Rupee|₨.]] 1.502 billion. Total Net Receipts were of [[Pakistani rupee|₨.]] 3.591 billion, out of which [[Pakistani rupee|₨.]] were bank borrowings.<ref name="Dawn">{{cite web|last=Dawn|title=Budget 2013–14: Visualised: Budget at a glance|url=http://www.dawn.com/news/1017795/budget-2013-14-visualised|work=13 June 2013|publisher=Dawn|accessdate=19 February 2014}}</ref> Detail of federal expenses and revenues is a follows:
{| class="wikitable"
|- bgcolor = "#ccccff" align=center
| colspan=2 |'''Federal Expenses(%)'''
|-
|[[Interest rate|Interest Payments]]
||32.0%
|-
|Defence Affairs and Services
||17.0%
|-
|Federal Public Sector Development Programme
||15.0%
|-
|Grants and Transfers
||9.0%
|-
|Running operations of the [[Government of Pakistan]]
||8.0%
|-
|Subsidies
||7.0%
|-
|[[Pensions in Pakistan|Military Pensions]]
||4.0%
|-
|Development Expenses
||5.0%
|-
|[[Pensions in Pakistan|Civil Pensions]]
||1.0%
|-
|-
|Provision for Pay and other Pensions
||1.0%
|-
|Net Lending
||1.0%
|}
{| class="wikitable"
|- bgcolor = "#ccccff" align=center
| colspan=2 |'''Federal Revenue(%)'''
|-
| align=center | Net Revenue Receipts
|53.0%
|-
|Bank Borrowings and loans
||27.0%
|-
|Net Capital Receipts
||14.0%
|-
|Net External Receipts
||5.0%
|-
|Estimated [[Administrative units of Pakistan|Provincial Surplus]]
||1.0%
|}

===2013–2014 Fiscal Budget===

{{Main|2014 Pakistan federal budget}}

On 13 June 2013, Dar presented the [[2014 Pakistan federal budget|federal budget]] for [[Fiscal year|2013–14]], which was termed as "business friendly".<ref>[Govt unveils 'business friendly' budget for FY 2013–14 {{cite web|url=http://www.geo.tv/GeoDetail.aspx?ID=104921 |title = Govt unveils ‘business friendly’ budget for FY 2013-14 {{!}} Pakistan - geo.tv |accessdate=2013-06-12 |url-status=dead |archiveurl=https://web.archive.org/web/20130615005302/http://www.geo.tv/GeoDetail.aspx?ID=104921 |archivedate=15 June 2013 }}] ''GEO News'', 13 June 2013</ref> Total outlay of the [[2014 Pakistan federal budget|federal budget]] was [[Pakistan Rupee|₨.]] 3.5 trillion with an annual [[Fiscal deficit|deficit]] of 6.3%; the inflation was set at 9.5% as the [[GDP|GDP growth]] was projected at 4.8%.<ref name="Ministry of Finance, budget">{{cite web|last1=etl. al|first1=Finance Minister|title=Annual Budget Statement 2013–14|url=http://www.finance.gov.pk/budget/abs_2013_14.pdf|website=Govt. Pakistan|publisher=Ministry of FInance, budget|accessdate=14 October 2014}}</ref> The budget putted [[Pakistan Rupee|₨.]] 1.55[[Trillion (short scale)|tn]] for the [[Public Sector Development Program|PSDP]]; additional allocation of [[Pakistan Rupee|₨.]] 75 billion for the [[Benazir Income Support Programme|BISP]]; the [[Defence spending by country|defence expenditure]] was kept at [[Pakistan Rupee|₨.]] 627 billion as the debt servicing was near at the [[Pakistan Rupee|₨.]] 926 billion.<ref name="Ministry of Finance, budget"/> The [[General sales tax|GST]] was increased from 16% to 17% as the [[Pension in Pakistan|social security]] was up by 10%, with minimum raised from [[Pakistan Rupee|₨.]] 3000 to [[Pakistan Rupee|₨.]] 5000; the [[Pakistan Rupee|₨.]] 225 billion was reserved for energy sector development.<ref name="Ministry of Finance, budget"/>

The tax exemption for luxury cars was proposed to be abolished while 1200[[Automotive industry in Pakistan|CC]] [[hybrid vehicle]]s are being exempted form import duty.<ref name="Ministry of Finance, budget"/> A concession of 50.01% had been proposed for 1200–1800[[Automotive industry in Pakistan|CC]] [[hybrid vehicle]]s.<ref name="Ministry of Finance, budget"/> Recommendations were to include [[Pakistan Rupee|₨.]] 20,000 tax be applicable on the purchase of 1000[[Automotive industry in Pakistan|CC]] [[Cars in Pakistan|cars]].<ref name="GEO News">{{cite news|last1=News desk |title=Government unveils 'business friendly' budget for FY 2013–14 |url=http://www.geo.tv/GeoDetail.aspx?ID=104921 |accessdate=14 October 2014 |publisher=GEO News|date=13 June 2013 |url-status=dead |archiveurl=https://web.archive.org/web/20130615005302/http://www.geo.tv/GeoDetail.aspx?ID=104921 |archivedate=15 June 2013 }}</ref> A withholding tax on [[Pakistani wedding|wedding ceremonies]] being held at commercial venues has also been proposed along with taxes on foreign movies and dramas. Additional [[Taxation in Pakistan|taxation]] on cigarettes, ''[[paan]]'', and [[Areca nut|''chahliya'']] were also been increased. The [[GDP growth]] rate was set to target for [[Fiscal year|2013–14]] at 4.8% and [[Federal Board of Revenue (Pakistan)|revenue]] targeted at [[Pakistan Rupee|₨.]] 2.475[[Trillion (short scale)|tn]].<ref name="Ministry of Finance, budget"/> The non-tax income was set around [[Pakistan Rupee|₨.]] 800 billion as the government had allocated [[Pakistan Rupee|₨.]] 185 billion as [[energy subsidy]].<ref name="Ministry of Finance, budget"/>

Finance Minister [[Ishaq Dar]] maintained that the [[Debt|circular debt]] amounted to more than [[Pakistan Rupee|₨.]] 500 billion was to be eliminated in 60 days.<ref name="Ishaq Dar's speech on budget">{{cite web|last1=Dar|first1=Ishaq|title=Federal Budget Speech 2013–2014|url=http://www.finance.gov.pk/budget/FinalBudgetSpeech_13_14_english.pdf|website=Govt Pakistan|publisher=Ishaq Dar's speech on budget|accessdate=14 October 2014}}</ref> The budget proposes to abolish the ministers' discretionary funds.<ref name="Ishaq Dar's speech on budget"/> Initiation of the Laptops scheme was approved by the government and the Customs duty on water filtration equipment was proposed to be decreased while the people's works program renamed as ''Tamir-e-Watan Pakistan program'' (lit. Nation–building Pakistan Programme).<ref name="Ishaq Dar's speech on budget"/> Finance Minister [[Ishaq Dar]] said that the auction for [[3G technology]] was to be held soon and the borrowing from the [[State Bank of Pakistan]] (SBP) will be reduced.<ref name="Ishaq Dar's speech on budget"/> The rate of inflation will be kept under single digit and its targeted rate for [[Fiscal year|2013–14]] has been fixed at 9.5%t.<ref name="Ishaq Dar's speech on budget"/> He said the government inherited a battered economy and the average rate of inflation stood at 13.1% in last five years."<ref name="Ishaq Dar's speech on budget"/>

==Opinions==

===Commercial and public opinion===

Responding to the budget, dr. [[Farrukh Saleem]] hailed the budget and termed it "Historic budget", as large portion of the budget was related towards the development of country's [[Planning Commission of Pakistan|civil sector]], [[Education in Pakistan|higher education]], [[National Highways of Pakistan|highway infrastructure]], and [[Electricity sector in Pakistan|electricity sector]].<ref name="News International, 2013">{{cite news|last1=Saleem|first1=Farrukh|title=Historic budget unveiled|url=http://www.thenews.com.pk/Todays-News-2-183483-Historic-budget-unveiled|accessdate=14 October 2014|agency=News International, 2013|publisher=News International, 2013|date=13 June 2013}}</ref> Spending on governmental infrastructure was drastically reduced to 45.5% and the [[Prime Minister's Secretariat (Pakistan)|Prime Minister's Secretariat]] had voluntarily given up its [[Pakistani rupee|₨.]] 42 billion discretionary fund.<ref name="News International, 2013"/> According to Farrukh Salim, the budget had shown as sign of "political maturity" as in the past governments had always abandoned schemes—whether good or bad—of their predecessors.<ref name="News International, 2013"/>

The budget was aimed to fill the [[Pakistani rupee|₨.]] 500 billion circular debt in [[:Category:Government-owned companies of Pakistan|state-owned enterprises]] for the first time since the [[Nationalization in Pakistan|nationalization programme]] began back in the January 1972.<ref name="News International, 2013"/> The budget [[Government budget deficit|deficit]] was to be scaled down from [[Pakistani rupee|₨.]] 2.2[[Trillion (short scale)|tn]] to [[Pakistani rupee|₨.]] 1.6[[Trillion (short scale)|tn]] with increasing the investment-to-GDP ratio to 20.9% as well as increasing international reserves by 100% and keeping inflation in 6.3%.<ref name="News International, 2013"/>

The main focus of the budget was to increase the spending on [[Higher Education Commission (Pakistan)|higher education]], with the allocation of [[Pakistani rupee|₨.]] 57.1 billion and a 50.0% jump in the number of scholarships.<ref name="News International, 2013"/> As dr. [[Farrukh Saleem]] maintained: "Our minister of finance may not make favourable headlines, but he has made history. The document that he has presented makes him a dreamer and an artist —two in one. Someone intelligent once said, "An artist is a dreamer consenting to dream of the actual world."<ref name="News International, 2013"/>

===Criticism===

The budget was criticized over the increase in the [[General sales tax|GST]] and the zero-increment on salaries of government personnel.<ref name="GEO News, 15 June 2013">{{cite news|last1=News Desk|first1=a|title=MQM rejects federal budget 2013–14|accessdate=14 October 2014|agency=GEO News|publisher=GEO News, 15 June 2013|date=15 June 2013|url=http://www.geo.tv/GeoDetail.aspx?ID=105324|archive-url=https://web.archive.org/web/20130617043226/http://www.geo.tv/GeoDetail.aspx?ID=105324|archive-date=17 June 2013|url-status=dead}}</ref> The pro-[[Socialism in Pakistan|leftist]] [[Muttahida Qaumi Movement – Pakistan|MQM]] rejected the budget for the new [[fiscal year|2013–14]], terming it "a burden on the masses."<ref name="GEO News, 15 June 2013"/> Addressing a press conference at [[Nine Zero|Nine Zero Secretariat]], [[Muttahida Qaumi Movement – Pakistan|MQM]]'s [[convener]] dr. [[Farooq Sattar]] said that the increase of [[General sales tax]] (GST) is a "merciless step" for the low-income class people.<ref name="GEO News, 15 June 2013"/> Dr. [[Farooq Sattar|Sattar]] said that no measures were taken to provide relief to the poor masses.<ref name="GEO News, 15 June 2013"/> He further said that the first priority of the government should be to eliminate electricity [[loadshedding]] in the country, but, he added that no steps were taken in this regard.<ref name="GEO News, 15 June 2013"/> The MQM leader said the PML-N government also failed to introduce any policy to bring back looted money. While criticizing the government, Sattar said that money should be allocated in the budget to [[counterterrorism]] efforts."<ref name="GEO News, 15 June 2013"/>

Schools teachers and educators on the other hand, describe the budget as the "Budget worst in history of Pakistan".<ref name="The News International, 14 June 2013">{{cite news|last1=Ahmed|first1=Saeed|title=Teachers term 2013–14 Budget worst in history of Pakistan|url=http://www.thenews.com.pk/Todays-News-6-183719-Teachers-term-2013-14-Budget-worst-in-history-of-Pakistan|accessdate=14 October 2014|agency=The News International|publisher=The News International, 14 June 2013|date=14 June 2013}}</ref> The [[Punjab, Pakistan|Punjab]] based SST Teachers Association lashed out at the government for providing no incentives to government employees, including teachers, in the budget.<ref name="The News International, 14 June 2013"/> The SST Teachers Association criticised the government for not making increase in salaries of government employees.<ref name="The News International, 14 June 2013"/> According to SST Teachers Association, it was for the first time in the country's history that government employees have been totally neglected.<ref name="The News International, 14 June 2013"/> The [[Sindh]] based APTA association appealed to the [[Pakistan Muslim League (N)|PML(N)]] to reconsider the budget policy to fixing the minimum salary of workers at [[Pakistani rupee|₨.]] 18,000.<ref name="The News International, 14 June 2013"/> The salaries of government employees should be increased in accordance with the prevailing price hike, he demanded.<ref name="The News International, 14 June 2013"/> The [[Sindh]]-based APTA association quoted that the "APTA association, together with the Punjab Teachers Association, would launch a protest movement against the government."<ref name="The News International, 14 June 2013"/>

===Adjustments===

After the severe criticism from the public, the adjustments were carried out Finance Minister [[Ishaq Dar]] and raised salaries of government personnel by 10.2% following recommendations of the committee tasked to review its feasibility.<ref name="GEO News, ad">{{cite news|last1=News desk|title=Government raises employees salaries|url=http://www.geo.tv/GeoDetail.aspx?ID=105345|accessdate=14 October 2014|agency=GEO News|publisher=GEO News, ad|date=15 June 2013|archive-url=https://web.archive.org/web/20130618173509/http://www.geo.tv/GeoDetail.aspx?ID=105345|archive-date=18 June 2013|url-status=dead}}</ref> To review the budget, Finance Minister [[Ishaq Dar]] had constituted a review committee to review the possibility of an increase in the salaries of government employees.<ref name="GEO News, ad"/>

Initially, the committee proposed 7.5% raise in the salaries, however, Dar said the government has increased it by 10.1%.<ref name="GEO News, ad"/> Senator Dar said the raise in salaries of government employees would be effective from 1 July."<ref name="GEO News, ad"/>

==Governmental views on Federal Budget==
{{Main|2014 Pakistan federal budget}}
"Federal Minister for Finance, Senator Muhammad Ishaq Dar said Saturday that the federal budget for the upcoming financial year 2013–14 will be presented before the National Assembly on Wednesday, 12 June after its approval from federal cabinet.The upcoming budget would mainly focus on revival of economy with special concentration on overcoming circular debt to resolve the prevailing energy crisis in the country, Ishaq Dar said while talking to media after assuming the office of Federal Minister for Finance, Revenue and Economic Affairs and Statistics here.

Ishaq Dar said that the government has already devised a strategy to overcome the prevailing challenges at economic front including energy crisis.Before the presentation of the budget in the National Assembly, the meeting of National Economic Council (NEC) was scheduled to be held on Monday 10 June to consider and approve funding for Public Sector Development Programme(PSDP) (2013–14).Senator Ishaq Dar said that the circular debt has expanded to Rs. 500 billion and for resolving energy crisis there is dire need to get rid of this burden adding that the upcoming budget would be devised in a way to come out of this vicious circle.

He was of the view that country was facing several challenges however,added that the government would try its best to overcome these and help economic development.He said that inflation was also one of the pressing issues but it could not be brought down overnight and would take some time to provide relief to masses.

The federal minister said that the debt on government has surged from Rs. 3000 billion up to Rs. 14000 billion and the government is not only bound to pay back the loans but also pay interests according to the schedule.The government would definitely opt for a better mechanism to pay back these loans adding that it was already engaged to devise a proper strategy in this regard adding that some payment are due till December. The federal minister said that the country also have to spend on its defense, infrastructure and other social sector programs. He said that the International Monetary Fund (IMF) post-monitoring program missions is scheduled to visit Pakistan in the third week of June.

On revenues, the federal minister said that the Federal Board of Revenue(FBR) has been directed to achieve its revised tax collection target well in time. The FBR had revised the revenue target from Rs. 2301 to Rs. 2193 and then to Rs. 2116.The minister said that the government would try to achieve the revenue targets it would set for the upcoming fiscal year (2013–14). He said there is dire need to enhance income and resources to help improve economy and lead the country towards progress and prosperity. He stressed the need for striking balance between income and expenditures and informed the media persons that austerity measures will be taken to reduce the expenditures."<ref>Government to Present Budget on 12 June:Ishaq Dar, http://www.brecorder.com/top-news/1-front-top-news/123024-government-to-present-budget-on-june-12-ishaq-dar.html ''Business Recorder'', 8 June 2013</ref>

==References==
{{reflist}}

{{Economy of Pakistan}}

{{DEFAULTSORT:2013-14 Pakistan federal budget}}

{{#seo:
|keywords=2013 in Pakistan, Nawaz Sharif administration, Pakistani budgets
|description=
}}

[[Category:2014 government budgets|Pakistan]]
[[Category:2013 in Pakistan]]
[[Category:2014 in Pakistan|Budget]]
[[Category:Nawaz Sharif administration]]
[[Category:Pakistani budgets]]

2013 14 Pakistan federal budget - Revision history

MetaBOT at 18:08, 8 July 2023