FAISALABAD CHAMBER OF COMMERCE & INDUSTRY

Salient Features of Federal Budget 2017-2018

Sectors / Estimated Amount ForBudget 2017-2018 / Comments
Total Outlay of Rupees / 5103.8 Billion / An increase of 4.3% over last fiscal year’s
Real GDP Growth / 6% / Economic targets of FY 2017-2018
Investment to GDP / 17% / Economic targets of FY 2017-2018
Development Budget / 1001 Billion / Economic targets of FY 2017-2018
Inflation / 6% / Economic targets of FY 2017-2018
Budget Deficit of GDP / 4.1% / Economic targets of FY 2017-2018
Tax to GDP Ratio / 13.7% / Economic targets of FY 2017-2018
Foreign Exchange Reserves / Cover a minimum of 4 months of imports / Economic targets of FY 2017-2018
Net Public Debt to GDP Ratio / Below 60% of GDP / Economic targets of FY 2017-2018
FBR Revenue Target / To increase 14% / While Federal expenditure will grow by 11%
Benazir Income Support Programme / Rs 121 Billion / This allocation has increased to 300%
Cash Grants to Primary School Children / Rs 1.3 Million
Subsidies Provide For Agriculture / Rs 118 Billion / Subsidies provide for tube-wells, off-peak rate of Rs. 5.35 per unit for Agriculture tube-wells.
This is estimated to cost around Rs 27 Billion in FY 2017-2018
To Start Own Business / Provide Rs 50,000 to 250,000 families / Government announcing new scheme to grantonetime cash for beneficiary families who willing to start their own business
Urea Fertilizers / 2500 per bag. Subsidy impact of 11.6 Billion / Reduced from 4200 per bag
Agriculture Loans / At reduced rate of 9.9% per annum / Government introduced new scheme through ZTBL & National Bank of Pakistan
Small loans 50,000 per farmer. / Total 2 Million Loans shall be provided by ZTBL & NBP & other banks.
Volume of agriculture credit for farmers enhanced Rs 1001 Billion / From the last year target of Rs 700 Billion which will be an increase of 43%
Disbursment of subsidy on DAP. GST is being reduced from Rs 400 to Rs 100. This will have a subsidy impact of Rs 13.8 Billion
Production Index Unit increase from 4000 to 5000 / This will facilitate farmers to obtain maximum credit from the banks
Reduce of Sales tax on certain imported machinery for poultry from 17% to 7%
Sales tax and custom duty 0% on import of new agriculture machinery
Sales tax on import and local supply of agriculture diesel is proposed to be exempted from 17%
Mark-up on Long Term Financing / Reduced 11.4% to 5%
Home Financing / Rs 6 Billion / Government will provide 40% credit gurantee cover to banks & DFIs. Facility will also be made available through micro-finance banks
Loans to Low Income Segment / Rs 8 Billion / Through micro-finance banks
Small & Medium Enterprises / Rs 3.5 Billion
IT Software Park / Rs 6 Billion / With the help of Korean Government IT Software Park will set-up in Islamabad
Tax on Cell Phones (Smart/Andriod) / Income tax: Reduced from 14% to 12.5%
Federal Excise Duty: from 18.5% to 17%
Custom Duty:Reduced from Rs 1000 to Rs 650
Electricity Generation Perojects / Rs.76.5 billion have been allocated for the two LNG based power
plants in Balloki and Haveli Bahadurshah / Both projects will be
completed during the year, and generate 2,400 MWs of electricity
Rs.54 billionfor Dasu Hydro Power project / In stage-I the project is envisaged to generate 2,160 MW of electricity
Rs.21 billion have been allocated for construction of DiamerBhasha
Dam / which will generate 4,500 MW of electricity
NeelumJehlum Hydro Power Project Rs.19.6 billion have been
allocated / Through this project 969 MW of electricity will be generated.
This project shall also be completed during the year
Rs.16.4 billion have been allocated for completing fourth extension of
TarbelaHydel Power / which will generate 1,410 MW of electricity
Rs.16.2 billion have been allocated for installation of 1,200 MW coal
fired power plant in Jamshoro
Two Karachi Nuclear Power Projects with combined
capability of 2,200 MW and Chashma Civil Nuclear Power plant with
600 MW capacity will be continued;
Development of water sector / Rs.38 billion / for the
development of water sector. Key projects such as extension of right bank outfall
drain (RBOD - II), RBOD - I and Kaachi Canal will be given the largest share in the
water sector portfolio. Priority will be accorded to completion of Kaachi Canal.
Collectively, these three projects will be allocated Rs.17.7 billion
Infrastructure / Rs.320 billion / This represents the largest increase of 70% for development of roads,
motorways, highways and bridges
Railways infrastructure / Rs.42.9 billion
Higher Education Commission / Rs.35.7 billion
Health Services / Rs.49 billion
Clean Drinking Water for all / Rs.12.5 billion / Clean drinking water is a cine quo
non for improvement in the public health. A special programme launched
CPEC projects / Rs.180 billion
Fast track development in Special Areas / Rs.62 billion
Defence budget / Rs.920 billion
Prime Minister Youth Schemes / Rs 20 Billion / Including interest free loans, training schemes, skill development programme, fee reimbursement & laptop programme
Non-Tax Receipts / Increase by 7%
Provisional ADPs (The outlay for Development) / Rs 2.1 Trillion
Resource Availability / 4681.2 Billion
Net Revenue Receipts / 2926Billion
Net Capital Receipts / 552.5Billion
External Receipts / 837.8Billion
Overall Expenditure / 5103.8Billion
Current Expenditure / 3763.7Billion / The share of current expenditure in the total budgetary outlay would therefore be 73.7
Development Expenditure / 1340.1Billion / The share of development expenditure in the total budgetary outlay would therefore be 26.3
Federal Taxes / 2384.2Billion
Bank Borrowing / 390.1Billion / A figure that is significantly lower than revised estimates of last year
FBR Revenues / The targets set by the budget include an increase in FBR revenues by 14%, growth in non-tax receipts of 7%
Addition of Electricity / 10000MW / An addition to National grid by summer 2018
Federal Public Sector Development Programme (PSDP) / 1001Billion / Which has received a 40% boost
Minimum Wages / Rs 1000 per month to Rs 1500

Source: Business Recorder

R&D Department, FCCI