The budget for fiscal year 2022-23 (FY23) is being presented in the National Assembly by Finance Minister Miftah Ismail.
This year’s budget session is less tumultuous than previous ones under the PTI-led government, because there is no opposition in the House after PTI lawmakers tendered their resignations.
Ismail began his address by criticizing the previous PTI government, claiming that its policies had harmed the country’s economy and harmed the lives of the people.
“The country was brought to its knees by an inexperienced team. Every year, new people presented the budget, each with their own set of policies that harmed investor confidence “According to the finance minister, his government has begun to restore the economy by making the difficult decisions that were required at the time.
The government has allocated Rs8,694 billion in total current spending for FY23, which is 15.5 percent higher than the previous year’s amount.
Defence spending is projected at Rs1,523 billion, accounting for 17.5 percent of overall current expenditure and representing an increase of 11.16 percent over last year.
Interest payments, also known as debt servicing, have increased by 29.1% to Rs3,950 billion in FY23, making them the government’s single largest expense, accounting for 45.4 percent of total current expenditure.
- Small business owners’ minimum tax band would be raised from Rs0.4 million to Rs0.6 million.
- On salaried class 15pc rise in pay, the minimum taxable income limit will be raised from Rs 0.6m to Rs 1.2m.
- Import and distribution of solar panels are exempt from sales taxes.
- Those who send money abroad using credit, debit, or pre-paid cards will be charged an advance withholding tax.
- On cars with engines larger than 1600cc, the advance tax will be raised.
- Pharmaceutical substances are exempt from any customs duties.
- Rs51 billion is suggested for education initiatives, while Rs24 billion is recommended for the health sector.