Budget 2007-08 at a Glance

The budget for fiscal year 2007-08 was presented by Minister of State for Finance Omar Ayub Khan during the budget session of the National Assembly on Saturday ( June 9, 2007) at the Parliament House Islamabad.

Following are the salient features of federal budget for FY 2007-08:

• People will be given relief worth Rs 111 billions.

• An amount of Rs 1.5 billion has been earmarked in the budget for the agriculture and livestock.

• Around 2000 new schools, colleges and universities will be established in the country.

• During last 10 months the investment crossed $6 billion mark in the country.      

• The employment was provided to around 10 million people during last five years·

•  Rs1874 billion (1.874 trillion) outlay envisaged in the new budget.

• Income from taxes would surpass Rs1025 billion.

•  CBR revenue collection target has been fixed at Rs1475 billion.

• Provision for Development Budget at Rs520 billion.

• New Development Program will focus on infrastructure and welfare of the people.

• An amount of 45 percent has been given to the provinces under the NFC award from the federal pool.

• An amount of Rs 418.7 billion was given to the provinces last year.

• The amount to the tune of Rs 457.2 billon would be spent on the provinces during coming year. 

• The provinces will get overall 46 percent of the G.D.P. 

• The subsidy to the tune of Rs 111 billion would be given on kerosene oil, diesel and fertilizer.

• Total Rs 418.7 billion were paid to the provinces last year.

• In the coming year Rs. 457.2 billion revenues will be provided to the federating units. 

• The provinces will be awarded 46% of the total national income. 

• Government has reduced the volume of foreign loans

• Government issued investment Bonds

• Rs275 billion provided for the Defence Budget.

• Government has made the country invincible

• The government has made “the budget of poor people” instead of the “budget of the elite class.” 

• The people will not be left on the mercy of price hike and inflation.

• The G.D.P growth rate of 7 percent has been achieved. 

• The highest amount in the history of Pakistan was earmarked under PSDP.

• Around 12.7 million people, who were living the life blow the poverty line, were pulled out from the poverty.

• The government has also borne the burden of the earthquake.

• The amount to the tune of Rs 73 billion will be spent for the welfare of the people.

• The provision basic facilities including water and electricity are among the top priorities of the government.

• The foreign investors are keenly interested in buying Pakistani bonds.

• Pakistan has emerged as a prosperous country.

• Revenues collection has crossed Rs. 1125 billion

• The budget deficit remained at Rs. 345 billion, which is 4% of the GDP

• Now foreign investors are keen to invest in Pakistan.

• The government has fixed appropriate profit for the saving schemes.

• Govt. employees’ salaries are being increased by 15%

• Pensions are being raised by 15% to 20%

• BPS-7 government employees are being promoted to BPS-9 and the BPS-9 to BPS-11.

• All government employees in BPS-1 to BPS-4 will be promoted by one pay scaleThe grades of the railway employees are being upgraded.

• Rs 4600 have been fixed as the minimum monthly remuneration for labourers.

• The medical facility would be provided to the workers by making an amendment in the constitution.

• The target of Rs 388 billion has been fixed for income tax collection.

• The sugar will be available at the utility stores at the rate of Rs 25 per KG.

• Four news sectors have been constructed in Islamabad after the span of 17 years.

• The loan facility is being provided to the low-income people for the construction of their homes.

• We have taken out the Pakistan Budget from the clutches of elite class and made it a people’s budget. 

• Our GDP annual growth rate remained at 7 percent.

• Our policies managed employments to 10 million persons during the last five years.

• Foreign investments during the past 10 months aggregated to $6 billion.

• PSDP amount allocation this time is unprecedented in the history of Pakistan.

• 12.7 million people during the past five years crossed over the poverty line.

• Our government bore the expenditures for quake-hit areas rehabilitation.

• Rs73 billion will be spent on people’s welfare

• Electricity and water supply are among the top priorities.

• Investors across the world today are making beelines for Pakistan Bonds.

• Pakistan is on the threshold of prosperity.

• The amount of Rs 522 billion would be spent under the PSDP programme.

• Some 5000 apartments are being built for the government employees in Islamabad.

• Around 250000 houses will be built for the government employees during next five years.

• The relief of Rs two lac would be given to those employees who become handicapped due to injuries sustained while performing their duty.

• Dal mong will be available at the utility stores at the rate of Rs 45 per KG.

• Dal Mash will be available at the utility stores at the rate of Rs 53 per KG.

• Gram seeds will be available at the utility stores at the rate of Rs 29 per KG.

• Different varieties of rice will be available at the utility stores at lesser price of Rs 5 per KG as compared to the market price.

• Over Rs200 billion allocated for subsidies on kitchen items.

• Contract and permanent employees differences will be bridged by enhancement in wages.

• House rent allowance for federal and provincial government employees has been raised to 50 percent from 45 percent.

• 4000 utility stores will be opened in six months throughout the country. 

• The government will establish first Sale Bazaar in Islamabad

• Growers markets and daily bazaars will be established in the country

• The ban on wheat and flour export has been resulted in sufficient stocks of wheat in the country, which will help in possible decrease in the flour prices

• Rs. 7.5 billion has been allocated in the budget for Pakistan Bait-ul-Mal to provide support to the poor. 

• A DAP bag will be provided at Rs. 470.

• Rs. 18 billion have been allocated for health sector. 

• The government on Saturday announced the highest ever Public Sector Development Programme (PSDP) for FY 2007-08 at Rs 520 billion, with a federal share of Rs 335 billion and focus on infrastructure and social sector development. 

• The allocation of Rs 520 billion under the PSDP 2007-08 shows an increase of 19.5% and 31.8% over the budget and revised estimates of 2006-07 respectively. 

• The PSDP/GDP ratio is 4.8 percent, which is well above the previous year’s level of 4.3 percent, and would be gradually increased to the level of 7 percent to achieve sustained growth and equitable development. 

• With the federal share of Rs. 335 billion in the PSDP, an amount of Rs 150 billion was expected to be spent by the provincial governments through their own annual development programmes. 

• For earthquake reconstruction and rehabilitation works, Rs 35 billion would be spent in the affected areas. In addition, the Public Sector Corporations will invest Rs. 204 billion outside the budget. 

• Thus in all, Rs 724 billion will be the development outlay during the fiscal year 2007-08. 

• For creating efficient physical infrastructure, human capital development and skilled work force, about 86% of the total federal PSDP has been reserved for timely completion of the on-going projects and the remaining 14% for induction of new high priority projects. 

• The balanced approach towards physical and human infrastructure is the corner-stone of the government's development strategy, as about 50% share would go to the development of physical infrastructure followed by 47% for social sector development and the remaining 3% for other sectors. 

• Sufficient funds have been allocated to assist the private sector which would help increase the quality of products and exports. 

• The size of federal PSDP has grown by 24% as compared to 2006-07, which is more favourable for provinces. 

• The provincial development programmes have also been increased by 30% over the previous year's level, as more resources will be available for them under the new NFC Award. 

• The federal ministries/divisions have secured a share of Rs 335 billion in PSDP 2007-08, as against the last year's allocation of Rs 268 billion, with Rs. 35 billion earmarked for earthquake reconstruction and rehabilitation. 

• The provincial development programme for 2007-08 has been kept at Rs 150 billion, as against Rs 115 billion allocated in the PSDP 2005-06.

• Government will provide relief and subsidies worth Rs 113.920 billion during the year 2007-08 as a part of its endeavours for the betterment of the common man. 

• The subsidies announced in the budget include- WAPDA-GST (Rs 24.893 billion), WAPDA-Tubewells (Rs 3 billion), Inter-DISCO tariff differential (Rs 25 billion), KESC-GST (Rs 3.3 billion), KESC on accounts of tariff differential (Rs 15.79 billion), Import of Urea fertilizer (Rs 4 billion), TCP-Import of sugar (Rs 7.5 billion), DAP Fertilizer (Rs 9.5 billion), Oil Refineries (Rs 15 billion) and Ghee Package-USC (Rs 1.2 billion).

• The revenue target for the eleven months has been achieved.

• Around 3 Lac households received benefit from the micro finance credit scheme.

• Over 85 basic health centres will be established.

• More than 4000 people will be given employment as a result of the establishment of the basic health centres.

• Pakistan has become self-sufficient in wheat production.

• The agriculture sector recorded development around five percent.

• Duty on furniture, marble granite, and generators has been waived.

• It is recommended to reduce the withholding tax on local manufacturing of vehicles up to five percent.

• The excise duty on cable TV is being waived.

• Rs8.61 billion allocated for environment protection.

• 22 percent of the federal budget allocated for water sector.

• 17 percent higher amount allocated for education and training.

• Internship program will be further widened.

• Urban clinics in the big cities of the country will be promoted.

• 1.8 million youths will benefit from the president employment scheme in next five years.

• Filter plants for clean water will be installed in every union council.

• National Highway Authority (NHA) will be provided an amount of Rs 29 billion during next year.

• The amount of Rs 500 million has been earmarked for the construction of Bhasha Dam and Diamir Dam.

• The condition for import of reconditioned vehicles has been reduced to three years.

• Tax on 800CC vehicles remains unchanged.

• Tax on FATA and PATA has been waived.

• Special Surcharge Tax has been imposed on all kinds of imports.

• Exemption of Stock Exchange Tax is being announced.

• The zero rating is being expanded.

• Excise duty on energy saver lamp is increased from 10 to 15 percent.

• More immunity will be given in terms of taxes on Economic Zones.

• Rs34 billion further allocated for Khushhal Pakistan Program.

• 4.8 percent increase this year as compared previous year recorded in cotton production.

• Two companies set up in private sector will make possible the surge in livestock production.

• One biggest in Asia milk plant has been set up in Pakistan livestock sector.

• Mobile Tower Installation provided employment to 24,000 persons.

• 35,000 employments were provided in the banking sector.

• Enormous amounts allocated for Mangla Dam, Gomal Zam Dam and That Canal.

• Gawadar Port will bring prosperity to Balochistan and the whole of Pakistan.

• Increase in large-scale manufacturing industry was recorded up to 8.8 percent.

• Increase of 21.1 percent was recorded in cement industry.

• Increase of 38.8 percent was recorded in manufacturing of air conditioners.

• Increase of 25 percent was recorded in manufacturing of electricity transformers.

• Increase of 11.5 percent was recorded in manufacturing of tractors.

• Special Economic Zone is being established in Lahore to promote Chinese products.

• Special Garments cities would be constructed in Karachi, Lahore and Faisalabad.

• Regional Tax offices are being established to improve the tax collection system.

• The rate of tariff is being reduced slowly.

• Zero tariff Slab is being introduced.

• The facility of 3.50 percent of R& D is being given to the fiber manufacturers.

• International oil price hikes will not be shifted to the people.

• National Saving Scheme profits during 1996-1999 enhanced up to 18 percent.

• Government measures will help stabilize prices of goods.

• Existing government has made extensive changes in the system of taxes.

• Pakistan now has $15 billion foreign exchange reserves.

• Pakistani nation can now walk across the world proudly with their heads high.

• We are on way to getting rid of poverty.

• Pakistan is on way to speedy progress.

• We are no more beggars with bowls in hands.

• We now provide financial assistance to others also.

• Group taxation concept was being introduced for the fist time in the country.

• Capital gain tax on shares transfer will not be levied.

• One separate schedule is proposed in the Banking Companies Income Tax Ordinance.

• Pakistan in eight years has traversed a long distance.

• Pakistan is now being counted among the fast Asian advancing countries, we are getting rid of poverty, our nation has awakened.