Budget 2023-24: Govt proposes budget with a PKR 14tr expenditure

According to a June 9 news source, Finance Minister Ishaq Dar presented the federal budget for fiscal year 2023-24 to the National Assembly in Islamabad with an expenditure of more than PKR 14 trillion.

Read more with EL news: Government unveils tax incentives for contractors in Budget 2023-24

According to the available information, the government has taken steps to provide relief to the inflation-ravaged nation. Here are the measures for relief:

• BISP allocation increased from PKR 400 billion to PKR 450 billion.
• Increased compensation for government employees in the guise of Ad-hoc Relief Allowance
• Health insurance certificate for journalists and artists in paid employment
• Pension and minimum pension raised to PKR 12,000
• ICT minimum compensation rises from PKR 25,000 to PKR 30,000. Loan cancellation program for widows                                                                                                                                                                  Increase in the following allowances’ rates:
• Allowance per order
• Special transportation allowance for the incapacitated
• supplementary fee current charge allowance
• Daily and mileage reimbursement

Details of Prime Minister’s Initiatives – Planning Development and Special Initiatives (PSDP) are as follows:

• PKR 30 billion put aside for PM Initiative for Solar Tube wells 10 billion Pakistani Rupees for PM
• Small Loan Program for Young People
• Pakistan Endowment Fund for Education: PKR 5 billion; PM Initiative for IT Startups and Venture
• Capital: PKR 5 billion
• 5 billion PKR for PM initiatives to empower women
• 10 billion PKR for PM Laptop Program $5 billion for PM Environmental Revolution
• 5 billion Pakistani Rupees for Youth Skill Development
• 5 billion Pakistani rupees for Other initiatives (sports and the hepatitis C control program).
• Government will attempt to create a business-friendly budget: Dar

In addition, the budget includes 1,210 development initiatives, of which 32 will receive funding of at least PKR 5 billion each. The budget for the Annual Development Program (ADP) is 1,150 billion Pakistani rupees (PKR).

The Public Sector Development Program (PSDP) has been allocated 90 billion PKR.
170 billion Pakistan Rupees have been set aside for the Prime Minister’s Special Initiatives and legislators’ Development Schemes.
Dasu Hydropower Project is allotted PKR 58.59 billion, while Karachi Greater Water Supply Scheme is allocated PKR 17 billion.
The sum of PKR 17,63 billion will be used to acquire goods waggons and passenger bogies.
Karachi Coastal Power Project is allocated PKR 14.86 billion, while Merged districts of Khyber Pakhtunkhwa are allocated PKR 26 billion.
A 10-year development strategy for the formerly tribal areas will be funded with PKR 31 billion.
PKR Mohmand Dam Hydropower Project has been given 10.5 billion, Jamshoro Coal Power Project has been allocated 12 billion, and the Pakistan-Tajikistan transmission line will be allocated 16 billion.
Six billion Pakistani rupees have been allocated for the Rehabilitation of flood-affected areas.
5.70 PKR have been budgeted for the Hyderabad-Sukkur Motorway project
New Gwadar International Airport has been allocated PKR 5 billion, and the Lahore-Sialkot Motorway from Narang Mandi to Narowal has been allocated PKR 5 billion.
Read: KMC to get PKR 32 bn development budget for FY2022-23

PSDP 2023-24 for Departments, Divisions, and Ministries
The budget details for ministries, departments, and divisions are as follows:

Interior Ministry has been allocated PKR 9.50 billion.
PKR 1.40 billion has been set aside for the Ministry of Law and Justice
The Maritime Affairs Ministries have been allocated PKR 3.3 billion.
150 million Pakistani rupees are allocated for the Narcotics Control Division
The Health Ministry has been allocated PKR 13,10 billion.
540 million Pakistani rupees designated for the National Heritage and Culture Division
33 billion PKR have been set aside for Railways Division
Pakistan Atomic Energy Commission has been budgeted PKR 26.10 billion
150 million Pakistani Rupees have been designated for the Pakistan Nuclear Regulatory Authority
1.5 billion Pakistani Rupees will be used for the Petroleum Division
24.89 Pakistani rupees have been set aside for the Planning Division.
500 million Pakistani rupees designated for poverty alleviation and social protection
800 million PKR allocated to the Ministry of Religious Affairs
3.20 billion Pakistani Rupees allocated for Revenue Division
Allocation of PKR 8 billion for Science and Technology
PKR The Ministry of Water Resources has been allocated 107 billion.
PKR 6.90 billion laid aside for SUPARCO
54.55 billion Pakistani rupees have been set aside for the Ministry of Energy
157.50 billion Pakistani rupees are designated for the National Highway Authority (NHA).
5.45 billion Pakistani rupees have been approved for the Ministry of Aviation The Board of Investment has been allocated $1.11 billion.
90.12 billion Pakistani rupees have been allocated for the Cabinet Division.
4.5 billion Pakistani rupees set aside for Climate Change
Read: In the Sindh Budget for 2022-23, tax relief for the IT sector is announced.

The Commerce Division will be allocated PKR 1.10 billion.
PKR 3.40 billion dollars have been allocated for the Defence Division.
PKR 2 billion has been set aside for defence manufacturing
840 million Pakistani rupees have been allocated to the Establishment Division
Finance department has been allotted PKR 3.22 billion.
Federal Ministry of Education development initiatives have been allocated PKR 8.50 billion
PKR Azad Jammu and Kashmir will receive 60.90 billion.
57 billion Pakistani rupees have been allocated for the consolidated districts.
PKR The Higher Education Commission receives 59.71 billion dollars.
PKR The Housing and Works Ministry has been allotted 36.70 billion dollars.
PKR 180 million will be allocated to the Ministry of Human Rights.
3 billion Pakistani rupees set aside for the Ministry of Industries and Production
PKR Two billion dollars have been allocated to the Ministry of Information and Broadcasting.
PKR Reserved $6 billion for Information Technology
PKR The Ministry of Inter-Provincial Coordination has been allocated $1,900,000,000.
Targets for sectoral expansion for 2023 and 2024
In addition, the budget establishes development targets for various sectors for the 2023-24 fiscal year. The GDP growth rate objective is set at 3.5%, while the agriculture sector and major crops each have a growth rate target of 3.5%. The objective for industrial production growth is 3.4%, while the target for manufacturing growth is 4.3%. The services industry is anticipated to increase by 3.6%.

Other growth targets include 3.6% for livestock, 7.2% for cotton processing, 3% for forestry and fishing, 3.2% for large-scale manufacturing, 2.2% for electricity generation and gas distribution, 2.8% for wholesale and retail, and 5% for transportation and communications. The education sector is expected to grow by 3%, while production in the private sector is anticipated to increase by 5%. The target growth rate for the real estate sector is 3.6%, while the financial and insurance sector is 3.7%.

The purpose of these allocations and growth targets for fiscal year 2023-24 is to support the growth and development of various sectors and promote economic stability.