Photo courtesy PID
Praising the budget proposed by Finance Minister Miftah Ismail on Friday, Prime Minister Shehbaz Sharif vowed that the government will steer country out of economic crisis through the passage of this finance bill.
“These are difficult times brought upon us by recent years of economic mismanagement,” he wrote in a series of posts on Twitter. “Through this budget, my government will steer our way out of these challenges by taking tough decisions while minimizing the impact on vulnerable segments of the population,” he said.
Sharing his thoughts on how the government hoped to protect the impoverished from economic hardship by seeking greater taxable contributions from financially stronger individuals, he said: “We have allocated billions of rupees for targeted subsidies. This amount is in addition to Rs. 344 billion allocated for Benazir Income Support Program. Only deserving people to get the subsidy.”
According to the prime minister, the government is aware of the financial difficulties of government employees and has increased their salaries by 15% while also merging an earlier announced ad hoc allowance into their basic pay. “The tax slabs have been revised. Those earning up to Rs. 1.2 million annually have been exempted from taxes,” he said, adding the government would tax non-productive assets of the rich, including 5% tax on the purchase of second property and increase in tax on luxury cars.
The premier said the government had reduced to zero tax on the import and distribution of solar panels, adding that zero tax had also been proposed for the import of agricultural machinery and implants. “This major step will enable our farmers and agriculture to progress,” he said.
The government, said Sharif, had also increased funding for the Benazir Income Support Program and extended the Benazir scholarship program to 10 million students. “As promised, no cuts in the budget for higher education sector,” he said. “The development budget for the HEC [Higher Education Commission] has been increased from Rs. 26 billion to Rs. 44 billion, representing an increase of 67%. Our commitment to education is firm and absolute,” he added.
The prime minister concluded his statement by congratulating the finance minister and his team “on the presentation of a balanced, progressive and pro-people budge,” adding that making a budget in the prevailing financial crunch, “with so many constraints,” was no less than a herculean task.