BUDGET 2010-11 how it is going to bring relief for people?
 

budget days are near
how this budget is going to favour common man?
is it going to improve or put more burden on lives of people?
what will be fate and impact of VAT on common man?
what are government's agendas?
how to relieve people?
what people are expecting?
which things are going to be hit by budget?
are daily needs going to be out of the range of people?
what effect its going to have on politics and current scenario?

brother ,no need to tie our hopes with thier agressive budget.because, they always say this one is better than the last one.. but when peoples see it they will agaped as usual..

Budget is still far away but me and other smokers are being charged Rs. 2 extra for a pack since last week. :clap
when i protest against this over-charging, the shopkeeper says " aap ko nahi pata budget aa raha hai" and this happens every year in this month and they collect millons before the budget wheater the price is increased or not !
The company says we have not stoped the supply, the shopkeepers says they have to pay more to whole sellers. It is a mafia which becomes active before budget by stocking the consumer goods in anticipation of the price increase. Nobody can stop them as they create artifical shortage by hoarding. It is the best earning time of the year for them.
lets hope the budget will pass without droping another bomb on the poor people of pakistan.

good news
 

budget is not an annual shock.every pakistani faces daily a new budget.a lot of additional taxes will be presented wraped in faked allownces and reliefs.so,be prepare to warm welcome this gift :pipe

Pakistan’s 2010/11 budget — what to watch for

Thursday, May 27, 2010
KARACHI: Pakistan is due to announce its budget for the 2010/11 (July-June) fiscal year on June 5.

According to the details of the budget that have been announced and media reports on its likely contents.

Macroeconomics: The government expects gross domestic product (GDP) to grow by 4.5 per cent in 2010/11 fiscal year beginning on July 1 against 4.1 per cent forecast for 2009/10.

Agriculture growth during the next fiscal year is targeted at 3.8 per cent, manufacturing growth at 5.6 per cent and service sector growth at 4.7 per cent.

Inflation for 2010/11 fiscal year is targeted at 8 per cent against the central bank’s forecast in the range of 11 per cent and 12 per cent for 2009/10.

The government aims at a fiscal deficit in 2010/11 fiscal year in between 4 per cent and 4.2 per cent of the GDP against an earlier forecast of 5.1 per cent, according to a newspaper.

The government plans to further cut the Public Sector Development Programme funding to Rs280 billion for 2010/11 because of financial constraints and a commitment to international donors to maintain the budget deficit within manageable limits, a newspaper reported quoting a top government official.

[B]Taxes, Duties and Subsidies: The government has decided to eliminate subsidies on power, fertiliser and sugar in the budget for the next fiscal year.[/B]

[B]The government has decided to eliminate five types of subsidies for the next fiscal year, official sources said[/B]. This includes a subsidy on the power tariff, a power tariff subsidy for tube-wells in Balochistan, a tariff differential subsidy, a subsidy on sugar and a subsidy on fertiliser from July 1.

The government is expected to announce the replacement of a general sales tax with a 15 per cent Value-Added Tax in the budget.

The government is also expected to impose capital gains tax on the purchase of shares made on or after July 1.

2010/11 2009/10

GDP growth 4.5pc 4.1pc

Agriculture growth 3.8pc 2.0pc

Manufacturing growth 5.6pc 4.4pc

Service sector growth 4.7pc 4.6pc

Inflation 8.0pc 11-12pc

Fiscal deficit 4.2pc 5.1pc

source:[url]http://www.thenews.com.pk/daily_detail.asp?id=241382[/url]

yes ,you guys were right ,better not think about it,its a nightmare

Ya, we can expect more grief instead of relief out of coming budget. But a good news i heard is the lower tax on computer items is expected so wait if you want to buy a new laptop or LCD moniter. :pipe

Federal Budget with outlay of Rs3.259 trln presented
 

ISLAMABAD: Finance Advisor Dr. Abdul Hafeez Shaikh presented Federal Budget for 2010-11 with a total outlay of Rs3.259 trillion with 685 billion deficit before the parliament on Saturday.

In his budget speech at special budget session of the National Assembly, Dr. Hafeez Shaikh announced ad hoc allowance at 50 percent of basic salaries for government employees; raise in GST from 16 to 17 percent; 10 percent cut in Federal Cabinet salaries; capital gains tax of 10 percent on stocks held for six months or less, 7.5 percent on stocks held between 6 months to a year; reduction in customs duty on 29 items; raise in pension by 15 percent for employees retired before 2001 and 20 percent for those retired after 2001.

He said the budget deficit will be around 685 billion, which is 4 percent of GDP.

Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP.

Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Inflation is targeted at 9.5 percent in 2010/11 fiscal year, down from the central bank's forecast of between 11.5percent and 12.5 percent for the year ending June 30.

The defence budget is set at 442.2 billion rupees, a 17percent increase from last year.

The general sales tax will be reformed to a uniform rate of 15 percent. GST will not be imposed on health, education, food items and on those merchants whose turnover is less 7.5million rupees.

This reform will be effective from October 1, 2010.

Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.

Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.


Dr. Shaikh said Rs 1 CED will be imposed on manufacturing of each cigarette while 30 million energy savors will be provided in a bid to conserve electricity.

He stressed upon self-reliance and resource mobilization.

Talking about unemployment, he said jobs are created when the whole economy grows.

He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.

We have to make our policies right and rise above the petty issues.

He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.

He said three dams will be built in 2010-11.

He said PEPCO wants subsidy of Rs 180 billion.

All non-developmental federal expenditures will be frozen while 40 billion will be distributed among the poor under Benazir Income Support Programme.

Baitul Maal to continue functioning with Rs2 million.

ADP is being fixed at 603 billion out of which 52 percent will be given to the provinces.

Minimum taxable income for salaried class being raised from Rs200,000 to Rs300,000.

Capital Gains Tax of 10 percent being imposed on gains from stocks held for less than 6 months; 7.5 percent on gains from stocks held for 6 months to 1 year and; no tax on capital gains from stocks held for more than a year.

Pension raised by 15 percent for the employees who retired before 2001 and 20 percent for those retired after 2001.

200,000 unemployed youth will be provided employment for 100 days under Youth Scheme.

s663bn allocated in PSDP-2010-11
 

[B]s663bn allocated in PSDP-2010-11[/B]
Updated at: 1745 PST, Saturday, June 05, 2010 ShareThis story

ISLAMABAD: Following are the highlights of Public Sector Development Programme (PSDP) 2010-11, released here on Saturday:

Total amount of Rs. 663 billion has been allocated in PSDP-2010-11 for various ongoing and new schemes.

Out of total PSDP, the federal share is Rs. 280 billion, provincial share Rs.373 billion where as Rs.10 billion would be spent for Reconstruction and Rehabilitation of Earthquake-hit areas.

Following are the main allocations:
--- Rs.28423.8 million for Water and Power Division (Water Sector)
--- Rs.15227.5 million for Pakistan Atomic Energy Commission.
--- Rs.14565.7 million for Finance Division.
--- Rs.13629.6 million for Railways Division.
--- Rs.9395.7 million for Planning and Development Division.
--- Rs.15762.5 million for Higher Education Commission.
--- Rs.16944.5 million for Health Division.
--- Rs.10873.7 million for Food and Agriculture Division.
--- Rs.3220.1 million for Industries and Proudction division.
--- Rs.5140.9 million for Education Division.
--- Rs.5584 million for Interior Division.
--- Rs.3887.1 million for Defence Division.
--- Rs.3618.3 million for Housing and Works Division.
--- Rs.3618.7 million for Cabinet Division.
--- Rs.4115.5 million for Population Welfare Division.
--- Rs.1646.2 million for Science and Technological research Division.
--- Rs.885.6 million for Livestock and Dairy Development Division.
--- Rs.1000 million for Law and Justice Division.
--- Rs.1000 million for Environment Division.
--- Rs.1000 million for Special Initiatives Division.
--- Rs.1234.7 million for Revenue Division.
--- Rs.623.4 million for Petroleum and Natural Resources Division.
--- Rs.718.3 million for Information Technology and Telecom Division.
--- Rs.1229.7 million for Defence Production Division.
--- Rs.474.1 million for Commerce Division.
--- Rs.149.1 million for Communication Division (other than NHA).
--- Rs.518.6 million for Ports and Shipping Division.
--- Rs.246.9 million for Pakistan Nuclear Regulatory Authority.
--- Rs.152.9 million for Women Development Division.
--- Rs.107.6 million for Social Welfare and Special Education Division.
--- Rs.65.8 million for Labour and Manpower Division.
--- Rs.82.3 million for Local government and Rural Development Division.
--- Rs.125 million for Tourism Division.
--- Rs.140.8 million for ministry of Foreign Affairs.
--- Rs.549.8 million for Narcotics Control division.
--- Rs.114.4 million for Establishment Division.
--- Rs.353.9 million for Culture Division.
--- Rs.229.6 million for Sports Division.
--- Rs.74.5 for Youth Affairs Division.
--- Rs.509.9 million for Information and Broadcasting Division.
--- Rs.164.6 million for Textile Industry Division.
--- Rs.82.3 million for Statistics Division.
--- Rs.81.1 million for Ministry of Postal Services.
--- Rs.15 million for Economic Affairs Division.
--- Rs.12029.7 million for WAPDA (Water)
--- Rs. 44637 million for National Highway Authority
--- Rs.10523.5 million for Azad Jammu and Kashmir (Block and other projects)
--- Rs.6584.9 million for Gilgit-Baltistan (Block and other projects)
--- Rs.8642.6 million for FATA.
--- Rs. 5000 million for People's Works Programme-I
--- Rs.25000 million for People's Works Programme-II

[B]Salient points of Dr. Hafeez Shaikh’s budget speech.[/B]

* Total budget outlay for 2010-11 is [B]Rs 3259 billion[/B], which is 10.7 percent more than the current year.
[B] * 50 percent ad hoc allowance of basic salaries to be granted to government employees.[/B]
* GST raised from 16 to 17 percent.
[B]* Salaries of government employees raised by 50 percent.[/B]
[B]* Federal Cabinet cut down its salaries by 10 percent.[/B]
* Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay.
[B] * Rs 1 CED imposed on manufacturing of each cigarette.[/B]
* Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP.
* Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees.
* Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component.
* Inflation is targeted at 9.5 percent in 2010/11 fiscal year, down from the central bank’s forecast of between 11.5percent and 12.5 percent for the year ending June 30.
* The defence budget is set at 442.2 billion rupees, a 17percent increase from last year.
[B]* The debt to GDP ratio has climbed to 55 percent and ‘we must protect the poor’.[/B]
* 30 million energy savors will be provided in a bid to conserve electricity.
* He stressed upon self-reliance and resource mobilization.
* Talking about unemployment, he said jobs are created when the whole economy grows.
* He held flawed policies and influence of some government departments responsible for energy shortage in the country where people are willing to pay for the utility but cannot get it due to unavailability.
* We have to make our policies right and rise above the petty issues.
* He said there is burden of 235 billion on the country’s budget due to losses being incurred by state owned enterprises including PIA, Pakistan Steel Mills and PEPCO.
[B]* Three dams will be built in 2010-11.
* Pepco want subsidy of Rs 180 billion.
* 685 billion budget deficit, which is 4 percent of GDP.
* Reformed GST to be implemented from October 31.
* All non-developmental expenditures frozen.
* 40 billion to be distributed among people from Benazir Income Support Programme.[/B]
* Baitul Maal to continue functioning with Rs2 million.
* Minimum wage raised from Rs6000 to Rs7000.
* ADP fixed at 603 billion out of which 52 percent will be given to the provinces.
* GST will be reformed under which instead of 16 to 25 percent GST there should be single 15 percent GST for all. No sales tax on health and food.
* Rs10 FED imposed on 1 mmbtu gas.
* Minimum taxable income for salaried class raised from Rs200,000 to Rs300,000.
* Capital Gains Tax of 10 percent being imposed on gains from stocks held for less than 6 months; 7.5 percent on gains from stocks held for 6 months to 1 year and; no tax on capital gains from stocks held for more than a year.
* Custom duty reduced on 29 items.
* Pension raised by 15 percent for the employees who retired before 2001 and 20 percent for those retired after 2001.
* 200,000 unemployed youth will be provided employment for 100 days under Youth Scheme.

Rs. 663bn allocated in PSDP-2010-11


o my God,only luxury of cigarettes is going to be out of reach.
some relief,with a lot of question marks??????

VAT implication is postponed till october.strange and interesting.
but over all
the budget is a mixture of goods and bads
a brutus friendly budget

Rs. 1 tax for each cigrates ? :0 Means increase of Rs. 20 for a pack ? :cry
Hamara kia banay ga ?

Will the 50% increase in the salaries of govt officials will also apply to the salaries of policemen and army officials?????

yes it is the bad sign.smokers have to be worried.

[B] @ waseem [/B]

i think, this formula of increasing criteria of salary will not be applicable on the armed persons becoz few months ago their salaries have been doubled however policeman could enjoy this blessing ,their ground reality is quite different.

yeah! no raise for army men. a gud decision since they had gotten it earlier

Finance Minister said the current 50 per cent ad hoc relief would also not be applicable to the police, armed forces and judiciary as their salaries had already been increased to 100 percent. [URL="http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=105439&Itemid=1"][B]APP[/B][/URL]

true sympathies withh all the smokers.........:wacko:

Congratulation to all Govt employees for enjoying 50 % increase in salaries

I need explaination that this increse is applicable for eisting employees only .........means basic pay for new employees will be the same or their is any revised pay scale.

* 50 percent ad hoc allowance of basic salaries to be granted to government employees.
* Salaries of government employees raised by 50 percent.

Combining above technically signify that Govt.Employees will receive double of their previous salary.??

Not Double
 

I thinks its not double
50 % adhoc releif allowance will be added to the salary separately
In this way basic salary will have the same figure, there is no change

[QUOTE=zash;190564]I thinks its not double
50 % adhoc releif allowance will be added to the salary separately
In this way basic salary will have the same figure, there is no change[/QUOTE]

[FONT=Calibri][SIZE=3]50% is an allowance, which will not be made part of salary. Hence it is onetime benefit to government employees. Government servants could get more benefit in terms of future increments, loan limits, other benefits had this 50% been made part of the basic salary. Government has taken wise decision to save funds by not making it part of basic salary. [/SIZE][/FONT]

Finance Bill
2010
[url]http://www.columnpk.com/wp-content/uploads/2010/06/FinanceBill20101.pdf[/url]

Customs budgetary measures 2010-11
[url]http://www.columnpk.com/wp-content/uploads/2010/06/SALIENTFEATURESCUSTOMS.pdf[/url]

Salient features for the budget 2010-11
Income tax
[url]http://www.columnpk.com/wp-content/uploads/2010/06/SALIENTFEATURESIncomeTax.pdf[/url]

Salient features
Sales tax & federal excise budgetary
Measures (fy 2010-11)
[url]http://www.columnpk.com/wp-content/uploads/2010/06/SALIENTFEATURESSTFE.pdf[/url]


Amendment in the customs act, 1969 (iv of 1969)
[url]http://www.columnpk.com/wp-content/uploads/2010/06/Amendment-in-the-Frist-Schedule-Tariff-to-the-Customs-Act-.pdf[/url]

@ Raz
 

Does it mean that next year the salaries would be depreciated by 50%?? what about the person getting employment this year and next year??

[QUOTE=dr.ali.zaidi;190682]Does it mean that next year the salaries would be depreciated by 50%?? what about the person getting employment this year and next year??[/QUOTE]

[FONT=Calibri][SIZE=3]It may be discontinued in future but mostly allowances once given are rarely withdrawn due to pressure of government servants / their associations. Even though it is at the sole discretion of government to disconnect allowance but it is not easy to take this action. Later on with the efforts of associations / unions such adhoc allowances are merged in basic salary to make its permanent part. [/SIZE][/FONT]
[FONT=Calibri][SIZE=3]Don't worry, this will be available for employees in the years to come as well.[/SIZE][/FONT]

[B][U]Govt fails to address crucial circular debt issue in new budget: analysts [/U]

KARACHI: The Pakistan Peoples Party-led government has failed to address the crucial issue of Rs120 billion worth circular debt in the proposed budget, which would not only hit the performance of energy companies, but also affect their dividend-paying ability, analysts said on Monday.

“We are disappointed. No measure has been announced in the new budget to resolve circular debt, a plague haunting energy companies,” said Farhan Mehmood, an analyst at the Topline Securities.

“This is evident from FY11 budget documents where the government has revised down its dividend targets for the energy companies.”Every year, the government reveals its returns (dividends) on the federal government’s investment. The receipt of dividends varies, depending upon the profits earned each year. At times, the budgeted numbers are not in line with the actual dividends declared by these firms. Among financial and non-financial institutions, only energy companies contribute around 90 per cent of the total dividend that the government receives.

Muzammil Aslam, an analyst at JS Global, said that contrary to the expectations, the government did not discuss any framework to resolve the circular debt in the energy chain. “Hence, the Budget FY11 remains a non-event for the sector,” he said.

The government has revised down its overall dividend target by 15 per cent to Rs64.2 billion for FY11 against Rs75.2 billion budgeted in FY10.

Ahsan Mehanti at Shahzad Chamdia Securities said that the government, contrary to the market expectations, has mentioned no strategy to deal with the circular debt issue. “But the impact on the oil marketing companies and the energy sector would be neutral as no revision in the petroleum development levy remains encouraging.”

The major cut in the dividend is witnessed in the energy companies primarily due to circular debt liquidity constraints, analysts say. However, they believe a sharp decline in oil prices and expected six per cent increase in the power tariff would reduce the further piling of the circular debt.
[/B]

Highlights of Budget 2010/2011
 

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[IMG]http://i49.tinypic.com/35bz59k.jpg[/IMG]
[IMG]http://i47.tinypic.com/2a65f2f.jpg[/IMG]
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[CENTER][SIZE=6][I][FONT=Book Antiqua]Maintenance of Gardens at the Cost of Taxpayers’ Money

[/FONT][/I][/SIZE]
[IMG]http://i235.photobucket.com/albums/ee182/Dangerous_deviant/President.jpg[/IMG]


[IMG]http://i235.photobucket.com/albums/ee182/Dangerous_deviant/PrimeMinister.jpg[/IMG]

[LEFT]
According to the official document, the maintenance of garden in the PM Secretariat will cost Rs 11.562 million in the fiscal budget 2010-11 against the original budgetary allocation of Rs 10.871 million in the outgoing fiscal 2009-10. The maintenance of gardens in the PM Secretariat is estimated to cost Rs 13.341 million in 2011-2012 and Rs 14.491 million in 2012-13.

In the President’s Secretariat, the maintenance of gardens is estimated to cost Rs 12.360 million in the fiscal year 2010-11, which will further go up to Rs 13.2 million in 2011-12 and Rs 14.16 million in 2012-13.


[/LEFT]
[/CENTER]

Sindh govt. has presented its budget and it has been announced that 50% raise would be given to the Sindh govt. employees in addition to 15% increase in medical allowance. It was earlier announced by the federal govt. that they would provide 50% increment to all the govt. employees. However, I want to ask here that anyone who is a sindh govt. employee should expect how much raise in his salary? Would is be 115% i.e. 50% by federal announcement, 50% provincial and 15% medical??

please also explain that since these increments are in shape of ad hoc allowance so do we get those ad hoc allowances in our CTP and STP esp. those who have applied through proper channel