Monday, June 6, 2011

Comment on Budget 2011-12

Federal Budget of Pakistan has been presented in the National Assembly of Pakistan on June 03, 2011. On that day, it didn't look like a Parliament rather it was looking like fish market. Traditional opposition from 'Opposition' branches with chaos of daunting and chanting of slogans like 'Go America', 'Budget Na-Manzoor'.
At one occasion, one of the member of the parliament presented 'Meal' to the Finance Minister Mr. Abdul Hafeez Sheikh. In addition to this, female parliamentarians were not behind the row, they thrown 'Bangles' at Finance Minister, which was ridiculous act.

As a student of Business and one of the common man, taking current economic and social conditions in the consideration, I must say, budget 2011-12 is a balanced budget.
Government of Pakistan (GoP) reduced sales tax from 17% to 16%, which is a good move to give relief to the poor and needy people of the country. Moreover, GoP has levied taxes on many items, which previouslt exempted from the tax like - Defence equipment, defence products, cement, etc. This will surely increase the tax revenue for the next financial year.

The dark side of the budget is GoP has lifted subsidy from many items. Sugar is subjected to the Federal excise Duty and textile products too. This will bring the relaxation in tax at neutral point.

GoP announced the 15% increment in the salaries of government employees up till BSP-16, which is good move indeed to cater the increasing inflation. 15-20% increment in the pensions of Ex-government employees.

Gop has also allocated Rs. 730 billion for PSDP. From which Rs. 430 is to allotted to the provinces, and remaining amount will be Federal share.

The tax collection targeted has been increased from the previous year. Rs. 1952 Billion has to collected in the financial year 2011-12 as compare to the Rs. 1542 billion of the fiscal year 2010-2011.