ISLAMABAD: The ministry of finance has finalized proposals for budget 2019/2020 and will get approval from the Cabinet before presenting in the Parliament on June 11, 2019.
Prime Minister Imran Khan will chair the cabinet meeting on Monday in which the budget with record deficit will be approved.
The sources said that the cabinet would approve budget with estimated Rs3,000 billion deficit.
According to the proposals, the budget allocation for the defence would be around Rs1,250 billion, which will less than the allocation for the outgoing fiscal year.
An amount of Rs2,500 billion has been proposed for the payment of interest on the loan, the sources said.
The government may allocate Rs925 billion for the federal development expenditures.
The Federal Board of Revenue (FBR) may be assigned Rs5,500 billion as tax target for the fiscal year 2019/2020. While, the estimated earning from non-tax revenue may be at Rs1,250 billion.
The tax proposals would include:
Sales tax on sugar would be increased from 17 percent from existing 8 percent.
Income tax has been proposed on the earning of middle-man.
Increase in duty and taxes has been proposed poultry, electron and several other items.
Increase in additional customs duty is recommended from 2 percent to 3 percent.
Abolishing zero rating for five export sectors is also part of proposals. It is worth mentioning that the prime minister has already announced to abolishing subsidy to zero-rated sector.
The government likely introduce soft loan program for youth. An amount of Rs5 billion would be allocated for establishing agriculture institute.
Decrease in fertilizers prices would be recommended.
The government employees and pensioners may get increase of 10-15 percent. The proposal of increasing pay and pension would get approval at the cabinet meeting.