Summary The minister dispelled the impression that the budget is pro-rich and contains peanuts for the poor.
ISLAMABAD (Web Desk) - Finance Minister Ishaq Dar has said that the new federal budget is aimed at ensuring good governance, eliminating corruption, plugging leakages in taxes and expanding the tax net.
He was speaking at the post-budget news conference to explain salient features of the budgetary proposals in Islamabad on Wednesday.
He clarified that additional tax revenue worth 231 billion rupees envisaged in the budget for the next financial year would not impact the common man. He said the government has embarked upon a programme to phase out discriminatory SROs in three years as some influential people had squeezed unnecessary concessions against standard rate of duties, which also bred corruption. He pointed out that elimination of some SROs next year would help raise additional revenues of 103 billion rupees. He said remaining tax would be realized from new tax assesses.
Ishaq Dar said the new budget contains measures to alleviate sufferings of about 90 million people living below poverty line. He said Qarza-e-Hasna schem and Prime Minister's youth schemes are aimed at bringing these people out of the trap of poverty.
He said the budget also envisages packages for agriculture, industrial and textile sectors to help realize their true potential.
Dar said there are 2.5 million retailers in the country but just a few thousands are registered. He said chain stores, shops in air-conditioned buildings and those accepting credit and debit cards will have to get themselves registered compulsorily.
Similarly, he said, those with electricity bills of fifty thousand rupees and above will also have to register themselves with tax department.
The minister categorically stated that the budgetary proposals contain no measure that could lead to increase in prices of cement. He warned that the government would not allow cement manufacturers to create artificial price-hike and stern action would be taken against profiteers.
Ishaq Dar said the culture of non-filing of tax returns will have to be eliminated for the sake of national economy and progress.
He said the previous government could increase tax collection by just three percent, while the present government increased it by 16.4% in eleven months of the current financial year.
He urged consumers to get receipts while making any purchases to help document the economy and discourage leakages of taxes.
The minister said the PPP Government did not increase allocations for Benazir Income Support Programme but the present government hiked them two hundred percent in just one year. Cash grant has also been increased first from one thousand to one thousand and two hundred and now to one thousand and five hundred per month under the programme. The number of its beneficiaries has also gone up from 4.3 to 5.3 million families.
He pointed out that minimum pension has been increased by hundred percent and there is twenty percent increase in minimum wages. He said the government would spend additional 42 billion rupees due to increase in salaries and pension. He said Employees Oldage Benefits Institution would be asked to increase pension of its pensioners.
The post of Superintendent has been upgraded to scale seventeen and employees in scale one to four will be eligible for one premature increment.
Dar said the budget contains a number of measures to promote exports as prosperity cannot be come sans increase in exports. He said an EXIM bank on the pattern of China and the United States would be established.
Ishaq Dar said the Government is working on Health Insurance Scheme for the benefit of the poor.He said the budget contains special incentives for less developed regions of FATA, Gilgit-Baltistan, Balochistan and Swat.
To a question he said national debt has come down by 600 to 700 billion rupees due to appreciation of rupee against dollar.
He said three thousand farmers would be given credit worth one hundred thousand rupees each.
Responding to another question the FM said he did not approve a proposal for increasing amount of monetization of transport facility for senior government officials.
