Federal Budget 2014-15

highlights

ISLAMABAD, Jun 3 (APP): Following are highlights of the Federal Budget 2014-15 presented
by Finance Minister Ishaq Dar in the National Assembly here on Tuesday evening:
Pakistans foreign exchange reserves likely to be US 15 billion by July this year.
Foreign exchange reserves have now increased to US 13.5 billion dollars.
Government brought stability to the Pakistani rupee and increased its value by 11%,
since coming into power.

Pakistani rupee parity with the US dollar is around Rs 98 to 99 per US dollar as
compared to Rs 111 to a dollar in December 2013.
Economy witnesses a growth rate of 4.14 per cent surpassing the figures in last six
years.
Now per capita income reaches $1386.
Inflation remained at 8.6 per cent as compared to 12 per cent during the previous
government.
Fiscal deficit stood around 5.8% as against predicted 8.8%.
Private investment reached 218% whereas export witnessed an increase by 4.25%.
Benazir Income Support Programme (BISP) allocation enhanced to Rs118billion in fiscal
year 2014-15 witnessing an increase of 200 per cent.
The social safety network for the poor segments would benefit about 480,000 families.
First shipment of 200 mmcfd of Liquified Natural Gas (LNG) to be added to the system
in a year.
Process to acquire 350,000 tons of LNG at international market has beenstarted to
reinforce current energy supplies.
Government succeeds in floating the Euro Bonds for two billion dollars against an initial
target of 500 million dollars.
Government announcs provision of up to Rs one million as housing credit toenable the
poor to have their own houses across Pakistan.
Introduction of 3G and 4G technology to create jobs for about 9,00,000youth in the next
four years.
FBR revenues rise from Rs. 1,679 billion to Rs. 1,955 billion in the first 11 months of the
current year.
Remittances, which were recorded at $11.6 billion during July-April 2012-13, rise to
$12.9 billion for the same period this year, showing an increase of 11.5%.
Government has allocated a huge amount of over Rs 26 billion for health sector.
Government has revived efforts to promote Islamic banking and financial system in the
country.
Number of beneficiaries under the BISP to be increased from 4.8 million to 5.3 million -
an increase of 29% since 2012-13.
Monthly stipend under BISP being enhanced by another 25% by raising it to Rs 1500.
Government settled circular debt and added some 1700 MW in the national grid.
3G-4G technology to create estimated 900,000 jobs in the next four years.
PSDP to be increased from Rs.425 billion during 2013-14 to Rs.525 next year, an
increase of nearly 24%.
GDP growth to gradually rise to 7.1% by FY 2016-17.
Inflation to be maintained in single digit throughout the medium term.
Investment to GDP ratio will rise to 20% at the end of medium term.
Fiscal deficit to be brought to down to 4% of GDP by 2015-16 and maintained at this
level afterward.
Tax to GDP ratio will be increased 13% by the year 2016-17.
Pakistans foreign exchange reserves to be increased to more than $22 billion at the end
of 2016-17.
Government investing Rs.42 billion for water storage projects in various parts of the
country.
Rs.205 billion to be invested in power sector.
Rs.25 billion allocated for land acquisition for Karachi-Lahore motorway this year and
Rs.30 billion in the next years development budget.
Government has allocated amounts for doubling of track from Khanewal toLalamusa,
covering a major portion of the north-south mainline.
Allocations have been made for rehabilitation of track from Karachi toKhanpur and
Khanpur to Lodhran.
Allocations have also been made to strengthen and rehabilitate 159 weakrailway
bridges.
Allocations have been made in the current budget to add more than 500engines to the
system through procurement and repair.
Around 1500 new wagons/bogeys are also being arranged.
Rs.20 billion allocated for 188 projects of the Higher Education Commission.
Funding for the provincial programmes for population welfare has been keptat Rs.8.2
billion.
Government, through the State Bank of Pakistan, to provide guarantee tocommercial,
specialized and micro finance banks for up to 50% loss sharing.
The scheme will cover farmers having up to 5 acres irrigated and 10 acresnon-irrigated
land holdings benefiting 300,000 farmer households/families with a loan size up to
Rs.100,000 with disbursement under this scheme will be Rs.30billion.
Crop loan insurance scheme introduced for farmers with landholdings of 12.5acers.
From this budget, the scope of CLIS premium reimbursement is being enhanced up to 25
acres.
700,000 farmers households/families to benefit from this scheme. Totalbudget cost of
the scheme is Rs.2.5 billion.
Live Stock Insurance scheme to benefit 100,000 Livestock farmer households/families.
Gross revenue receipts of the federal government for 2014-15 are estimatedat Rs.3,945
billion compared to the revised figures of Rs.3,597 billion for 2013-14, showing an increase
of 10%.
Share of provincial governments out of these taxes will be Rs.1,720 billion as compared
to Rs.1,413 billion revised estimates for 2013-14, showing an increase of about 22%.
Net resources left with the federal government to be Rs.2,225billioncompared to the
revised estimates of Rs.2184 billion for last year.
Government raises the level of provincial transfers over the last year fromRs.1,215
billion to Rs.1,720 billion.
Total expenditure for 2014-15, is budgeted at Rs.3,937 billion compared tothe revised
estimates of Rs.3,844 billion for 2013-14, showing meager increase of 2% which is much
lower than the inflation rate.
The budgetary needs of our Armed Forces as per their needs have been dulyprovided in
the budget. The current budget is estimated at Rs.3,130 billion for 2014-15 against
a revised estimate of Rs.2,935billion for 2013-14, showing an increase of 6.6%.