The government’s budget for fiscal 2018-19 has been announced. The total expenditure is of Rs5.932 trillion.
Federal Minister for Finance, Revenues and Economic Affairs, Dr. Miftah Ismail announced the budget saying, “ It is my honor to present today the sixth budget of the PML(N) government to this Parliament. It is indeed a historic moment for the nation and the Parliament to celebrate.”
In this article, we will look at the highlights of budget 2018-19, specifically for the development sector.
Agriculture Development 2018-2019
In order to boost the agricultural development in Pakistan, the government has announced relief in the sector by declaring uniform general sales tax at the rate of 3% on all the fertilizers. It will reduce fertilizer price & boost a balanced nutrient.
On agricultural machinery, GST will be reduced from 7 to 5%. Furthermore, concessions were proposed in duties & taxes for dairy livestock.
In the budget 2018-19, it was also proposed to set up an agriculture research support fund in the country with the basic allocation of Rs5 billion.
Public Sector Development Programme
Federal Public Sector Development Programme (PSDP) is reduced by 20% compared to the previous year’s allocated amount, going down to Rs800bn this year.
Total federal PSDP will be Rs1,030bn. Rs230bn will be provided by “self-financing by corporations and authorities”.
Water Division Development
Water division allocation has been doubled to Rs79bn in budget 2018-19. The Clean Drinking Water for All programme having a Rs12.5bn allocation in the budget was argued upon.
National Highway Authority Development
National Highway Authority budget has been reduced by 34% as some majors like Karachi-Hyderabad and Sukkur-Multan motorway are just about to complete.
The allocation of power division is reduced by Rs24bn and is now Rs36bn.
Capital Administration and Development Division
It will receive 2.6 times the present amount. Interior Division was allocated Rs15.7bn budget previously, it will be given additional Rs8.3bn.
Also Pakistan Atomic Energy Commission, the budget has gone up by 88% to Rs28.3bn.
Rs 4.7 billion allocated for Suparco Projects, to aid Pakistan in launching space program in years 2018-19.
Housing & Work Development
The allocation has gone down & reduced by half to Rs5.4bn.
Health Services Development
The budget has been reduced to Rs25bn from Rs48.7bn
The budget allocated to railways sector is Rs8.5bn less the present budget.