Pakistan is due to announce its budget for the 2010/11 (July-June) fiscal year on June 5. Following are details of the budget that have been announced and media reports on its likely contents.
- The government expects gross domestic product (GDP) to grow by 4.5 percent in the 2010/11 fiscal year beginning on July 1, compared with 4.1 percent forecast for the 2009/10 fiscal year.
- Agriculture growth in the next fiscal year is targeted at 3.8 percent, manufacturing growth at 5.6 percent and service sector growth at 4.7 percent.
- Inflation for the 2010/11 fiscal year is targeted at 8 percent, compared with the central bank's forecast of between 11 percent and 12 percent for the 2009/10 fiscal year.
- The government is aiming for a fiscal deficit in the 2010/11 fiscal year of between 4 percent and 4.2 percent of GDP, compared with an earlier forecast of 5.1 percent, the News newspaper reported.
- The National Economic Council is likely to approve 610 billion rupees for the 2010/11 fiscal year for the Public Sector Development Programme, the Daily Times newspaper reported, out of which 280 billion would go to the federal government, 10 billion to the Earthquake Reconstruction and Rehabilitation Authority and the rest to the provinces.
- The government is planning to revise the revenue collection target down to 1.667 trillion rupees from 1.7 billion rupees for fiscal year 2010/11, the Business Recorder reported.
TAXES, DUTIES AND SUBSIDIES
- The government has decided to eliminate subsidies on power, fertiliser and sugar in the budget for the next fiscal year, the Business Recorder newspaper said.
- The government has decided to eliminate five types of subsidies for the next fiscal year, official sources told the Daily Times newspaper. This includes a subsidy on the power tariff, a power tariff subsidy for tubewells in Baluchistan province, a tariff differential subsidy, a subsidy on sugar and a subsidy on fertiliser, from July 1.
- The government is expected to announce the replacement of a general sales tax with a 15 percent value-added tax in the budget.
- The government is expected to impose capital gains tax on the purchase of stocks made on or after July 1.