The federal cabinet approved the Budget Strategy Paper 2017-20, fixing economic growth target at 6 percent and budget deficit at Rs3.8 percent of the GDP for the next financial year 2017-18. The special federal cabinet meeting chaired by Prime Minister Nawaz Sharif gave approval for BSP, which was presented by Finance Minister Ishaq Dar. The government has already decided to announce the budget for the fiscal year 2017-18 on May 26. According to report the total outlay of the budget could be around Rs4.6 to Rs4.8 trillion for next year against Rs4.395 trillion of the ongoing year. The government has kept the economic growth at 6 percent for the next financial year as against 5.7 percent of the outgoing year. The government has decided to fix budget deficit target at 3.8 percent of the GDP for the year 2017-18 as compared to revised target of 4.1 percent of the GDP of the year 2016-17. The tax collection target for the Federal Board of Revenue has been fixed at above Rs4 trillion for next year, which was Rs3621 billion for the current year. The government in BSP has proposed to keep Rs700 billion for the Public Sector Development Programme and Rs150 billion for rehabilitation of war affected areas and the prime minister’s special programmes. The government is likely to earmark a major chunk for energy and infrastructure projects under the PSDP ahead of the next elections. The government is likely to keep around Rs950 billion for the defence for the next financial year as against Rs860 billion of the previous year. The country’s defence budget had increased by 10 to 11 percent in the last few years. The prime minister said that the focus of the next year’s budget would be on achieving higher, sustainable and inclusive growth. He directed the cabinet members to accord priority to the areas under their domain that could lead to improved economic growth and generate additional employment opportunities. He said that the government was determined to increase investments in both human and physical infrastructure. In this regard, highest priority would be accorded to increase in development budget and poverty reduction. He said that the time has come for the nation to reap the benefits of the economic policies of the government. It is good that government has fixed 6 percent target for economic growth for the next financial years. As for as agriculture sector is concerned, the focus of government should be on lowering the cost of inputs and modernization instead of resorting to increasing the support price. The Cabinet also spoke loudly about provision of incentives for some particular sectors or privileged classes, there was no mention as to what relief the common man would get in the budget. This will be the fifth budget of current government and government has so for failed to give relief to poor class and the benefits of improvement in macroeconomic indicators has not been transferred to lower class. The government has failed to generate employment opportunities and the rate of unemployment is very high. The government must focus to provide maximum relief to the poor and underprivileged segment of society.
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