Federal Budget 2012-13 Overview
Federal Budget 2012-13 Rs. 2.96 trillion announced by the Finance Minister Abdul Hafeez Shaikh on June 1, 2012. People have lost their interest for this year federal budget 2012-13, one main reason is that in the last budget the government completely failed to get the targets and results as desired. Keeping in view current situation of the country, this federal budget 2012-13 is a balanced one. The further said that his year circular debt will be cleared. The main reason of circular debt is income generated by power sector is less than the cost it has. Government also takes steps towards subsidy to power sector. Although the Government financial position is not stable, and still has increased the salaries of employees by 20% which shows a great concern for the people. Slary slabs reduced to 5 from 17. Collection of agricultural taxation is the responsibility of provinces. Government also allocated Rs. 23 billion to railway, for railway it is the best time to overcome the crises. According to Government it is a friendly budget and this will overcome electric crises and poverty.
Important Points of Federal Budget 2012-13
Important points of federal budget for the year 2012-13 are below.
- Ministry of Finance announced that there will be no new taxes, furthermore, the income tax slabs will be minimize from 17 to 5.
- In the this federal budget 2012-13, it was announced that 2000 utility stores will facilitate thousands of families.
- A sum of Rs. 10 billion allocated to export development fund.
- Rs. 20 billion increase was noticed in defence sector. A total sum of Rs. 264 billion allocated to Pak Army, Rs. 52 billion to Navy and Rs. 114 billion allocated to Air Force.
- It is announced that Government is trying their best to bring the GST down for all those items having more than 16% GST.
- All those items with a custom duty of 35% will be brought to 30%.
- To meet the energy crises a sum of Rs. 183 billion has been allocated.
- For the fiscal year 2012-13 the tax limit for salaried person raised from 300,000 to 400,000. Furthermore, the total numbers of slabs reduced from 17 to 5.
- To stop the hike in petroleum prices the government will sacrifice a sum of Rs. 70 billion.
- The salaries of Government employees were increased by 20 percent.
- A sum of Rs. 360 billion allocate to PSDP for ongoing projects.
- Rs.70 billion to support Benazir Income Support Program BISP.
- For Transport and Communication a total of Rs. 84 Billion allocated for NFA Rs. 51 billion and Railway Rs. 23 billion
- Rs. 37 billion allocated to AJK, Gilgit Baltistan and FATA.
- Tax reduced on business turnover from 1% to 5%.
- Both in Private and Public sector will provide 40,000 internship to Bachelor and Master Degree Holders
- Government will be responsible for Master and PhD students’ tuition fee (Balochistan, FATA and Gilgit Baltistan)
I hope that Government achieve all the desired targets and results aiming from federal budget 2012-13.