Key highlights of budget 2023-24

The government of Pakistan presented budget for fiscal year 2023-24 on Friday. Business Recorder takes a look at some of the key highlights of the documents.

• Economic growth target fixed at 3.5% for fiscal year 2023-24

• Inflation forecasted to average at 21%

• Tax-to-GDP ratio to stand at 8.7%

• Current account deficit to stand at $6 billion by end of fiscal year 2023-24

• Government has allocated Rs1.8 trillion for defence spending

• Rs1.1 trillion earmarked for subsidies

• Rs761 billion allocated for pension

• Government will spend Rs950 billion on account of Public Sector Development Programme

• Rs22.7 billion earmarked for health sector

• Agriculture credit limit enhanced from Rs1,800 billion to Rs2,250 billion

• Solarisation of 50,000 agriculture tubewells through Rs30 billion

• Withdrawal of all duties and taxes on imported seeds, combined harvesters, dryers and rice planters

• Rs10 billion earmarked for PM’s Youth Business and Agriculture Loans scheme

• Rs6 billion subsidy announced on imported urea

• Targeted subsidy announced on wheat flour, ghee, pulses and rice

• 35% increase in salaries of government servants of grade 1-16 in the form of ad-hoc relief

• 30% increase in salaries of government servants of grade 17-22 in the form of ad-hoc relief

• Tax free imports of software and hardware by IT and IT enabled services equal to 1% of their exports with a ceiling of $50,000

• No sales tax return by freelancers with exports of $2,000 per month

• Increase in Benazir Income Support Programme allocation from Rs400 billion to Rs450 billion

• Upward revision in pensions and increase in minimum pension to Rs12,000

• Rs10 billion set aside for provisions of 100,000 laptops for students

• Exemption of custom duty on import of raw material for batteries, solar panels and inverters