The federal cabinet has approved the federal budget for the fiscal year 2020-2021. Hafiz Sheikh special assistant to Prime Minister (PM) on finance informed the cabinet members about the contours of budget for the financial year 2020-21.
The cabinet also accorded approval to finance bill-2020 with some amendments. According to sources the cabinet members were informed about the federal budget in the perspective of coronavirus outbreak in special meeting of the cabinet held here under PM Imran Khan.
Majority of the cabinet members demanded for a considerable raise in the salaries of the government employees keeping in view the existing inflation ratio.
Minister for Industries & Production @Hammad_Azhar will present Federal #Budget for the fiscal year 2020-21 https://t.co/cU9mXij7CC #Budget2020 #PakistanBudget #PakistanEconomy #Covid19 pic.twitter.com/GqbZq4grZz
— Radio Pakistan (@RadioPakistan) June 12, 2020
PM Imran Khan said on the occasion a balanced budget has been evolved in difficult situation. Special focus has been placed on social and health sectors so that maximum resources could be provided to poor segments of society. More funds are being allocated for Ehsas program because the poor people are major focus of this government. All the steps will be taken to upgrade their standard of living, PM added.
Current account deficit is projected as 4.45 billion dollars in the federal budget for the financial year 2020-21.
According to budget documents trade deficit target has been set as 19.70 billion dollars. Country’s exports target has been set 22.71 billion dollars while imports target has been fixed 42.41 billion dollars.
The target of generating 3933-megawatt additional electricity has been projected in the federal budget for the financial year 2020-21.
Remittances inflows target for overseas Pakistan has been fixed 21.53 billion dollars. Over 549000 new gas connections including 443000 domestic, 6164 commercial and 634 industrial connections will be provided to the people in upcoming financial year.
Economic growth target has been projected as 2.1 percent in the budget for the fiscal year 2020-21.
Agriculture growth target has been projected as 2.8 percent, industrial growth 2.1 percent, service sector 2.6 percent, crops production 1.9 percent, small crops 1.5 percent, live stock, 3.5 percent, forestry 2.1 percent, fishing 1.5 percent and minus 2.5 percent for LSM.
Small industries production target is projected 6 percent, construction sector 1.4 percent, construction sector 1.4 percent, electricity production and gas supply 3.5 percent, service sector whole sale and retailers, 1.1 percent, transport, storage, communication, 0.9 percent, finance and insurance 3 percent, housing sector 4 percent, government services 4.6 percent and miscellaneous private sector 4.2 percent.
Read more: Fiscal budget 2020-21: The best way forward
The inflation target is proposed to be set as 6.5 percent in next financial year. National saving schemes target is projected as 13.8 percent and overall GDP growth rate 15.5 percent.
Online Int’l News with additional input by GVS News Desk