- Budget 2014-15 volume put at Rs 3.74 trillion, PSDP estimated at Rs 525 billion, five priority areas identified for next three-year fiscal policy
- Prime Minister Nawaz Sharif says govt working on war-footing to make Pakistan polio-free
Pakistan Today has learnt that the federal cabinet has accorded approval to the three-year Budget Strategy Paper ranging between 2014 and 2017 with the ministers suggesting some minimal changes into the actual proposal having a focus on five priority areas and a budget target volume of Rs 3.74 trillion.
Responding to the international warnings against the polio emergency, the cabinet also decided to speed up efforts for eradication of polio virus from the country with a special focus on taking over the control from provincial and local administration especially in FATA, parts of Khyber Pakhtunkhwa (KP) and Karachi.
Well-placed sources confided in Pakistan Today that the major feature of the budget strategy paper comprises of five priority areas. The areas include investment on mega energy and infrastructure projects including major dams, increasing the tax net, phase-wise removal of SROs, reduction in import duty and bringing it down to 25 percent and keeping it in five slabs.
The cabinet was informed that owing to a number of controversies, the target of foreign funding for Diamer-Bhasha dam could not be achieved, so Pakistan will be generating its own resources. However, World Bank and IMF have agreed to fund Dasu Dam.
An official of the Ministry of Finance told Pakistan Today that the government plans to unveil the budget 2014-15 in the National Assembly on June 3.
“This budget volume is a mere estimated figure. Till June 2, several amendments might be introduced in the budgetary proposal on the orders of the cabinet and the prime minister,” the official elaborated.
It is pertinent to mention that broader parameters of the next year’s budget have already been determined by the International Monetary Fund (IMF) which has already limited the government’s discretion by restricting borrowing for budget financing to Rs 1.4 trillion.
The source said that the budget allocation for Public Service Development Projects (PSDP) has been estimated at Rs 525 billion, while the current expenditures are set at about Rs 3.6 trillion. The budget deficit for next fiscal year is estimated at 4.8 percent of gross domestic product (GDP) or Rs 1.4 trillion.
Experts believe that if the government determines the budget deficit higher than what has been prescribed by the IMF, it could create problems during the fourth review of the $ 6.7 billion IMF programme.
RIDDING POLIO FOR GOOD:
Chairing the cabinet meeting Thursday, Prime Minister Nawaz Sharif said that the government was working on war-footing to eradicate polio from the country and all available resources would be utilised to make Pakistan a polio-free country in the near future.
The premier also directed the authorities for launching an extensive awareness campaign to dispel the misconceptions about polio vaccination.
The cabinet was also briefed by National Coordinator for Polio Eradication Ayesha Raza Farooq regarding barriers, challenges faced by the polio program and the way forward for making the program a success.
BUDGET PROPOSALS:
As per an official handout, Minister for Finance Ishaq Dar and Finance Division Secretary Dr Waqar Masood Khan gave a detailed presentation to the Cabinet members on “Budget Strategy Paper 2014-17.”
Finance Minister briefed that the government was re-framing the budget structure for the next three years, placing emphasis on major policy objectives.
While elaborating the next three years’ budgetary framework, the finance minister told that the government was planning to increase GDP growth rate by 7.2 percent till 2016-17.
Moreover, he said that the country’s foreign exchange reserves stood at $ 12.92 billion as on 13th May, 2014 – an indicator of growing economy.
The prime minister while explaining his vision directed for taking all possible economic measures to place Pakistan amongst emerging economies of the region while ensuring maximum relief for the people of the country.
The premier added that appreciation in the value of Pakistani Rupee against US Dollar and consequent reduction in the petroleum prices was possible because of the pragmatic economic measures of the present government.