The National Assembly on Monday approved the second budget of the Pakistan Tehreek-e-Insaf government for the fiscal year 2020-21.
The session was chaired by National Assembly Speaker Asad Qaiser and adjourned the session till 11 am tomorrow.
The new fiscal year’s budget was unveiled by the government earlier this month, the treasury benches have claimed that its a tax-free budget with a wide fiscal deficit for 2020/21, it proposes no increase in salaries of its employees and pensioners, rise in levies on luxury products, and tax relief for cement sector, sanitary wears and locally-manufactured mobile phones.
The total outlay of the federal budget 2020/21 is Rs7.136 trillion, a little expansionary to get economic recovery as already the economy has contracted in the outgoing fiscal year for the first time since 1952 due to COVID-19.
Tax revenues have been targeted at Rs5.464 trillion against the revised estimates of Rs4.208 trillion for the outgoing fiscal, depicting an increase of 29.8 percent. Of total tax collection, the FBR’s collections target has been increased by 27 percent to Rs4.963 trillion against the revised estimates of Rs3.91 trillion.
Increase in tax will put more burden on existing taxpayers. Besides, the development budget has been reduced over the last year.