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Budget and economic survey announced in 2022

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Muhammad Arif : Chairman Centre of Advisory Services for Islamic Banking and Finance (CAIF), Former Head of FSCD SBP, Former Head of Research ArifHabib Investments and Member IFSB Task Force for development of Islamic Money Market, Former Member of Access to Justice Fund Supreme Court of Pakistan

Shahbaz Sharif government has announced its budget. Some say it copy paste, some say bad and some term it little bit different. The budget size is Rs 9,118 billion.

During current financial year, FBR revenue is estimated at Rs 6,000 billion out of which provincial share will be Rs 3,512 billion.
Net Federal revenue will be Rs 3,803 billion. Federal Government non tax revenue is expected to be Rs 1,315 billion. Total expenditure will be Rs 9,118 billion. PSDP expenditure will be Rs 550 billion Debt servicing will be Rs 3,144 billion.
Defense expenditure will be Rs 1,450 billion. Running of Civil Government expenditure will be Rs 530 billion and subsidies will be Rs 1,515 billion. Grants will be Rs 1,090 billion.

During next financial year, FBR revenue is estimated at Rs 7,004 billion out of which provincial share will be Rs 4,100 billion. Federal Government will have net revenue of Rs 4,904 billion whereas non tax revenue will be Rs 2,000 billion

Federal government total expenditure is estimated at Rs 9,502 billion out of which debt serving will be Rs 3,950 billion and Rs 800 billion Budget is allocated for next year PSDP. There will be Rs 1,523 billion for defense and Rs 550 billion for civil administration
expenses. Rupees 530 billion are allocated for pension. Rs 699 billion are allocated for targeted subsidies and Rs 1,242 billion areallocated as grants which include grants for BISP, Bait-ul-Mall and other departments. Benazir Income Support Program

Now I share the steps taken for our poor and deserving sisters and brothers. We have increased Benazir Income Support Program allocation which was Rs 250 billion during 2021-22. In 2022-23, this allocation has been increased to Rs 364 billion.
Moreover, an amount of Rs 12 billion is allocated against subsidies for Utility Store Corporation. An additional amount of Rs 5 billion has been allocated as RamzanPackagBenazir Educational Scholarship Program will be extended to 10 million students, for this purpose an amount of more than Rs 35 billion has been allocated.
37. An additional 10,000 students will be provided Benazir under graduate scholarship, for this purpose an amount of more than Rs 9 billion has been allocated.

Benazir Nashw-o-Numa (Nutrition) Program will be extended to all districts at an expenditure of around Rs 21.5 billion.
39. In addition, six billion rupees have been allocated for poor and the needy under Pakistan Bait-ul-Mal.
Energy is of key importance for people, trade and industry.
During first three months of our government, we have paid additional Rs 214 billion as subsidies to people to lessen the outstanding arrears left by previous government. An amount of Rs 570 billion is allocated under this head for next financial year so that common people are able to afford expenses on power, during this harsh summer.
41. We have released Rs 248 billion for the payment of petroleum sector outstanding arrears and have provided Rs 71 billion for next financial year. Soon we will announce new gas rates, under which gas will be supplied to industries on rates competitive with other
regional countries, so that exports are increasedDespite several financial constraints, and the fact that highereducation is a devolved subject, we have allocated Rs 65 billion for
Higher Education Commission (HEC) in current budget. Additionally,
there is an allocation of Rs 44 billion for development schemes of HEC under PSDP, which is 67% higher than the previous financial year. this is a proof of our commitment to our youth. We are persuading provinces that in the coming years, they should assume more responsibility for higher education. Agriculture is the backbone of our country’s economy. Along with other measures, we have allocated Rs 21 billion to increase crop yield and uplift of livestock sector. An amount of Rs 24 billion has been allocated to provide betterhealth services to people, control and eradicate viral diseases, provision of medical equipment’s, vaccination and enhancement in the capacity of health establishment. The Economic Survey is an annual report card of the economy, which is presented a day before the budget and examines the performance of each and every sector and then suggests future moves.

Now we come to The Economic Survey that was de-linked from the Budget in 1964 and unveiled in advance in order to provide a context of the latter.The theme for Economic Survey 2021 is “Saving Lives and Livelihoods”. Presenting the highlights of the survey for the year 2021. In FY 2021, the economic contraction is projected at 7.7%. With the farm sector being the silver lining, the GDP growth is estimated at 11% in the financial year 2022.For FY22, provisional GDP growth has been estimated at 5.97%.

The agriculture sector posted growth of 4.4% mainly due to 6.6% growth in crops and 3.3% growth in livestock.

The industrial sector recorded a growth of 7.2% in FY22 compared to 7.8% growth in FY21.

The services sector grew by 6.19% during the outgoing fiscal year.

LSM (July-March FY22) posted a growth of 10.4% (4.2% last year).

Exports (July-May FY22) increased by 27.8% to $ 28.8 billion ($22.6 billion last year).

Imports (July-May FY22) grew by 44.3% to $72.2 billion ($50 billion last year).

The trade deficit (July-May FY22) increased to $43.3 billion (a deficit of $27.4 billion last year).

Remittances (July-April FY22) increased by 7.6% to $26.1 billion ($24.3 billion last year).

FDI (July-April FY22) decreased by 1.6 % to $1455.6 million ($1480 million last year).

The current account deficit (Jul-Apr FY22), stood at $13.8 billion ($0.5 billion last year).

Total liquid foreign reserves exchange reserves as of June 2, 2022 held by the country stood at $15.2 billion ($23.2 billion last year).

Meanwhile, reserves held by the State Bank of Pakistan (SBP) held $9.3 billion ($16 billion last year), and commercial banks $6 billion ($7.2 billion last year).

Inflation based on the consumer price index (Jul-May FY22) was recorded at 11.3% (8.8% last year).

Federal Board of Revenue (FBR) tax collection (Jul-May FY22) grew by 28.4% to Rs5348.2 billion (Rs4164.3 billion last year).

The fiscal deficit (July-April FY22) was recorded at 4.9% of GDP (Rs3,275 billion) against 3.6% of GDP (Rs2,020 billion last year).

The primary balance (Jul-April FY22) posted a deficit of Rs890 billion (a surplus of Rs159 billion last year).

Private sector credit increased to Rs1,312.9 billion from July 1 to April 29, FY22 against Rs454.4 billion last year.