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Federal Cabinet approves budget for the fiscal year 2013-14

ISLAMABAD: The federal cabinet has approved the budget for the 2013-14 fiscal year.

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A meeting of the federal cabinet was held in Islamabad with Prime Minister Sharif in the chair to review the budgetary proposals and to give formal approval to the budget for the next financial year.

Finance Minister Ishaq Dar will present the federal budget in the National Assembly late on Wednesday.

According to sources, the overall size of the federal budget is estimated at about Rs3.5 trillion, while the tax revenue target has been pitched at Rs2.75tr, including the FBR’s revenue target of Rs2.475tr.

The budget which also aims at restricting power sector losses is expected to do so by bringing down subsidies and gradually increasing electricity tariff for all consumers.

Moreover, sources said a host of tax adjustments were being proposed in the budget, including increase in tax rates, withdrawal of exemptions, removal of distortions and doing away with Statutory Regulatory Orders, to generate about Rs400bn.

Sources added that the government would try to restrict fiscal deficit to about Rs1.4 trillion, about 5.9pc of the GDP, in line with Dar’s desire to bring it down by 2.5pc of the GDP from the current year’s Rs2tr — almost 8.5pc of the GDP.

Asad Haroon
Asad Haroon
A netpreneur, blogger and above all; A Human :) Asad tweets from @aghaasadharoon and can also be approached on Google+

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