by AHMAD AHMADANI/AMER SIAL
- Says Rs920bn have been allocated for defence as it has been given preference in next budget
- Says to go beyond 6pc GDP rate, govt to set up Pakistan Development Fund
Finance Minister Ishaq Dar on Saturday loudly predicted that the Pakistan Muslim League-Nawaz (PML-N) government can also present the next financial year federal budget and no constitutional amendment is required.
The minister said this at the inception of the media briefing on the Federal Budget 2017-18. “This government can present next financial year budget and get it approved before June 4, a day before the start of tenure of the present government. It is constitutionally possible as the caretaker government cannot legally make any financial decisions,” he explained.
When asked to explain why the term ‘federal minister’ has been replaced with the term ‘Minister In charge’ (Finance Minister) in all the financial matter of the financial bill, the minister explained that change was made due to the ruling of the Supreme Court.
The Supreme Court had decided that only the prime minister could not decide financial matters of the state, he should get approval from the federal cabinet. This decision has made it binding that all the decisions of the different cabinet committees, especially the economic coordination committee of the cabinet, could be implemented if approved by the federal cabinet.
After the decision of the Supreme Court, a constitutional amendment is required, as previously any federal minister could act on behalf of the federal government. This is temporary arrangement and amendment in the constitution will be made, the minister explained.
The minister said that no new tax has been imposed, as only new revenue measures totalling Rs120 billion have been, with Rs33 billion in tax relief for different sectors and that reduces the actual new revenue measures impact to Rs87 billion, next fiscal year.
Stressing for a charter of the economy among the political parties for at least next five year, the minister said, “This is the best time to develop consensus on the charter of the economy for sustainability and achievement of socio-economic goals and macroeconomic stability in the country.”
“We have to save and consolidate the macroeconomic gains,” Dar said, adding, “We will have to work hard with unity to strengthen the country’s economy.”
The minister said the thrust of the new federal budget is on growth, job creation, poverty alleviation and improving the living standards of the common man. “Our priority is to strengthen the economy of the country,” he said.
Dar said that defence has been given preference in the next budget and Rs920 billion have been allocated. He said a sum of Rs1,001 billion has been allocated for PSDP (public sector development programme) and, after inclusion of the provincial PSDP, the amount will reach to Rs2100 billion.
About agriculture sector, the minister said that 3.4 per cent growth in agriculture sector needs to be maintained. He said agriculture credit has been set at Rs1 trillion, while two million small farmers with less than 12.5 acres holding will be given loan up to Rs50,000 at 9.9 per cent interest rate. Similarly, relief has also been given to farmers and poultry farmers in a number of ways by decreasing sales tax. He said the impact will be positive on agriculture. “The government will have to bear Rs13.8 billion loss for the decrease in the sales tax of DAP,” Dar said.
The minister also said the main targets are 6 per cent GDP rate and inflation at 6 per cent. He said 10,000MW power will be added to the national grid by next year. He said safety net has been increased to Rs121 billion. He said in order to reduce the budget deficit, the current expenditure will be kept below the inflation. He said IT ministry will train one million freelancers to create new jobs for the youth.
The minister said to go beyond 6 per cent GDP rate, the government has decided to set up Pakistan Development Fund. It will provide opportunities to Pakistani diaspora living abroad for safe and secure investment opportunities back home. The government may issue two bonds worth $500 million each to attract investment from overseas Pakistanis.
Similarly, he said, the Capital Development Authority (CDA) has been asked to develop a new sector in federal capital for the overseas Pakistanis. For getting a plot they will have to remit in US$ through banking channels. Similarly, to attract more investment from the private sector for the infrastructure development in the country, Pakistan Infrastructure Board has been established.
