National Budget 2013-14

Presented By: XXX

What is National Budget?

A government budget is a document plan of public revenue and expenditure that is often passed by the legislature, approved by the chief executive-or president and presented by the Finance Minister to the nation.

The Government budget is also known as National Budget or Finance Bill of the country. This document estimates the anticipated government revenues and government expenditures for the ensuing (current) financial year.

Elements
The two basic elements of any budget are the revenues and expenses.

In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits.

Overview
Finance Minister, Ishaq Dar has presented the Federal Budget 2013-14 on the floor of the National Assembly. The Rs 3.5 trillion budget was formally approved by the Federal Cabinet earlier. The focus of the budget was on overcoming the energy crisis, stabilization of the economy, cutting down on non-development expenditures and enhancing productivity through new growth strategies.

Salient Features
The budget 2013-14 has the following salient features
The total outlay of budget 2013-14 is Rs3,985 billion. This size is 24.4% higher than the size of budget estimates 12-13. The resource availability during 2013-14 has been estimated at Rs 3,010 billion against Rs 2,719 billion in the budget estimates of 2012-13.

The net revenue receipts for 2013-14 have been estimated at Rs 1,918 billion indicating an increase of 7.9% over the budget estimates of 2012-13.

Cont..
To meet expenditure, bank borrowing has been estimated at Rs 975 billion which is lower than the revised estimates of 2012-13 at Rs 1,576 billion. Minimum pension raised from Rs 3000 to Rs 5000
PM house expenditure to be decreased by up to 44 percent VIPs will not be allowed to import vehicles without paying duty and taxes

Cont..
Youths below the age of 25 and holding a masters degree will receive a stipend of 10,000 per month during a one year training program. PM Youth Skill development program will be launched

Hybrid cars up to 1200cc will not have any duty, sales tax or income tax. Duty on Hybrid Vehicles 1200 to 1800 to be reduced by 25 percent Sales tax to be increased from 16 to 17 percent

Cont..
Merchant and traders tax rate to be set at 25 percent Adjustable withholding tax is being introduced for wedding ceremonies Steps should be taken to set up a system which collects taxes from those who do not pay them

Rs 8 billion allocated for social welfare

Rs 57 billion allocated for higher education

Cont..
Work on Karachi Circular Railway is underway with the assistance of Japan and it will be completed soon
Rs 225 billion of the development budget has been allocated for the energy sector Rs 340 billion earmarked for development projects Employment oppurtunities will be created in the private sector

Comparision