ISLAMABAD – Finance Minister Dr Abdul Hafeez Shaikh on Wednesday said that the government would get Rs 210 billion through its announced expenditure cuts and revenue measures during the remaining quarter of the current financial year.
Briefing the media about the government plans for fiscal consolidation, he said that the rationalisation of expenditure had the full backing of the president, prime minister, armed forces and government departments. “The surcharge on income tax is nominal and taxpayers should feel proud to help their flood affected brethren”, he added.
About the expenditure cuts, he said Rs 100 billion have been cut from the current year’s Public Sector Development Programme while Rs 20 billion would be saved from the current expenditure during the last quarter. He said the revenue measures would generate Rs 90 billion to reach the revenue target of Rs 1,604 billion.
Improvement in our economy would help give more confidence to the bilateral and multilateral donors and also help attract foreign direct investment, he said adding that the revenue base needs to be further broadened to limit borrowing and spend more on the welfare of the masses.
“Since the government took over at a difficult time, it had to take tough decisions and some of the decision were yielding results as exports would reach record level of $ 24 billion and remittances over $ 11 billion during the current fiscal year,” he said.
Speaking on the occasion, Chairman Federal Board of Revenue Salman Siddique said that notices to tax evaders would be issued from March 21. He said that the withdrawal of exemptions and zero ratings along with new revenue measures would help reach the revenue collection target for the current fiscal year.
