Amid the fast-growing coronavirus pandemic, Pakistan has presented its second budget for the year 2020-21. According to the corona budget, the Pakistan government says it expected a 7% GDP deficit in the fiscal year.
No New Tax
According to the Pakistan budget for the year 2020-21, the government has decided to wave new taxes for its citizens. Here’s what PTI said about it on its official Twitter account:
“NO NEW TAX, generous funds for the healthcare sector, innovation in the education sector through tech, special grants to Balochistan, AJK & Gilgit-Baltistan, funds for daily wagers, agricultural sector, combating climate change & locust attack, that’s PM Khan’s #Budget2020 for you.”
The Facts And Figures Of The 2020-21 Pakistan Budget
According to the figures on the corona budget for the fiscal year 2020-21, the Pakistan government estimated total revenues of Rs6,573 billion and Rs 7,294.9 billion expenditure. Also, the net revenue receipts for 2020-21 have been estimated at Rs 3,699.5 billion. That indicates an increase of 6.7% over the budget estimates of 2019-20.
The provincial share in federal taxes, which is about 11.7% lower than the budget estimates for 2019-20, receives an allocated corona budget of Rs 2,873.7 billion.
Furthermore, the repayment of interest and debt has an estimated amount of Rs. 3235 billion. Also, Rs 1,324 billion has been reserved for the Public Sector Development Programme (PSDP). Out of that, Rs 676 billion goes to provinces, and federal PSDP gets a total estimation of Rs 650 billion.
Also, out of the federal PSDP budget, Rs 418.7 billion goes to Federal Ministries/Divisions, Rs 100.4 billion for Corporations, Rs 3 billion for Earthquake Reconstruction and Rehabilitation Authority (ERRA), and Rs 7 billion for COVID responsive and Other Natural Calamities Programme.
Hammad Azhar, the minister of industries who presented the budget has acknowledged that predicting the economic impact of the coronavirus pandemic was difficult.
According to the recent projection by the World Bank, Pakistan will likely see another year of negative growth, at -0.2%. However, Azhar said the Pakistan government targets a GDP growth of 7% for the 2020-21 corona budget, and 2.1% for the next fiscal year.
He also mentioned that they prepared the corona budget, to address the effect of the coronavirus pandemic.
Here’s a brief of what Azhar said below:
“Due to the long lockdown, the closures of the businesses, and maintenance of social distancing, economic activities have diminished. And that has brought a negative impact on growth rate and investment. As economies around the world, Pakistan’s economy also took a hit due to the coronavirus.”
So far, Pakistan has struggled to curb the spread of the coronavirus outbreak. As such, the World Health Organization issued a warning that the fast-growing infection could affect the country’s underfunded healthcare system.
currently, the country has a total of about 126,000 coronavirus cases, 2,463 fatalities, and a record of 6,397 cases on Thursday alone.