This would be an election budget, let’s keep this thread for discussing the budget and brainstorming it’s different aspects.
Pakistan budget 2012
According to Pm Gilani,they will create one lakh job opportunities,no more taxes....I think as this budget is before elections so they wil try to make it some how awam dost budget:)may be not!
Re: Pakistan budget 2012
Budget will be presented on 1st June 2012
Re: Pakistan budget 2012
According to Pm Gilani,they will create one lakh job opportunities,no more taxes....I think as this budget is before elections so they wil try to make it some how awam dost budget:)may be not!
Those are election gimmicks, if they restore electricity the industry will automatically start producing jobs.
Re: Pakistan budget 2012
https://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-prn1/28557_407695172070_4192469_n.jpg
Re: Pakistan budget 2012
1nOnlyMe: 
Re: Pakistan budget 2012
So what do you guys reckon about the budget?
An attempt to temper populism with realism | DAWN.COM
ISLAMABAD: The PPP government unveiled its fifth budget, which tried to balance the economic mess the government faces with the demands of the upcoming election.
As a result in one stroke it reduced subsidies and increased taxes — measures that are worth about Rs330 billion in total. But at the same time, it added Rs45 billion to its salary and pensions bill.
Announced on Friday by Finance Minister Abdul Hafeez Shaikh, the PPP-led coalition’s fifth budget estimated an expenditure of Rs2.960 trillion and a deficit of Rs1.105 trillion which is around 4.7 per cent of GDP.
However, the confusion over the government’s figures started soon after the speech ended. The budget document put the federal expenditure at Rs3.23 trillion, instead of Rs2.960 trillion announced by Mr Sheikh.
One possible explanation for this discrepancy could be that in his speech the finance minister left out the Rs591 billion the government plans to spend on development.
This includes Rs360 billion under public sector development programme (PSDP), Rs77 billion in development loans and grants to provinces and Rs154 billion on other development expenditure such as the Benazir Income Support Programme, Export Development Fund, Crop Insurance etc.
The federal budget set an ambitious tax revenue target of Rs2.381 trillion and the finance minister claimed that his government would take the FBR tax to GDP ratio up to 10.1 per cent.
However, not everyone was willing to agree with his ambitious mathematics. Officials said the additional taxation measures would generate about Rs62 billion extra revenue but the net impact of this would be partially offset by the Rs31 billion fiscal stimulus. Hence the net gain would be only Rs31 billion.
Subsidy (mis)calculations
However, the government hopes that its cuts in subsidies will also be a major gain. Subsidies have been reduced to Rs208.6 billion, which is 59 per cent less than what the government spent in 2011-12.
Hence the government promises to provide only Rs135 billion to Wapda instead of the Rs419 billion it provided in 2011-12 while it aims to dole out Rs50.3 billion to KESC, which got Rs45 billion in 2011-12.
However, very few people are willing to buy these figures. An economist working for the government admitted on the condition of anonymity that the reduction in subsidies seemed unrealistic. He pointed out that in 2011-12 the government had put aside Rs166.5 billion for the power sector but ended up providing subsidies worth Rs512.3 billion. There are no indications this year that the next fiscal year would prove to be any different.
Perhaps the finance minister was aware of this as he said in his speech that the government had injected Rs1.25 trillion in the power sector in five years. “This is a huge burden on country’s fiscal system. After the NFC award, federal resources cannot carry this burden for too long”. But it remains to be seen if the provinces will heed his words or that the federal government will stop doling out cash for this hungry monster.
Federal government earnings
According to the budget, the federal government estimates it will have Rs3.23 trillion to spend in 2012-13, compared to Rs2.732 trillion it had in the previous fiscal year. This means it hopes for an 18.3 per cent hike in its revenues.
Out of this amount, it estimates to earn Rs2.504 trillion from taxes and Rs730 billion worth of non-tax revenue. It hopes to collect Rs932 billion from direct taxes and Rs1.572 trillion from indirect ones.
Telecom sales and CSF earnings
Interestingly, the government plans to collect Rs730 billion non-tax revenue, which is 42 per cent higher than what it got in 2011-12 — Rs512 billion. The low figure for 2011-12 can be blamed on the failure to hold telecom sales and because Washington didn’t deliver the coalition support fund.
Hence, the ambitious target the government has set itself in the budget is primarily based on the notion that it will earn Rs197 billon in CSF and third generation telecom earnings.
Deficit gaps and hopes
The overall federal fiscal deficit for the next year has been estimated at Rs1.185 trillion but the budget documents put it at Rs1.105 trillion because the government expects that the provinces will provide a cash surplus of Rs80 billion.
But even if the provinces deliver, the federal government will meet the Rs1.105 trillion deficit from Rs971 billion of domestic loans and the rest from external loans. But as the finance minister pointed out in his speech, the deficit target for 2011-12 was missed by a huge margin especially if subsidies and debt consolidation were added to it — all this took the deficit to 7.4 per cent of GDP in 2011-12.
Back breaking expenses including salary hikes
The total current expenses have been estimated at Rs2.612 trillion. The largest share of expenditure would be consumed by interest payments of Rs926 billion, about 9.7 per cent higher than 2011-12’s revised estimate of Rs844 billion. The total expenditure on pensions has been estimated at Rs129 billion which includes Rs98 billion for military personnel and Rs31 billion for civilians.
In addition the government has announced another Rs45 billion for the proposed increases in salaries and pensions. The finance minister announced an across the board 20 per cent increase in salaries and pensions for government employees. That this was a political move forced on him as confirmed by officials in the finance ministry who said Mr Shaikh had wanted to stick to a 10 per cent increment but federal ministers such as Khursheed Shah, Qamar Zaman Kaira and Firdous Ashiq Awan wanted a 30 per cent raise. Eventually, the two sides compromised on 20 per cent.
Defence has been allocated Rs545.4 billion for the next year, about 10 per cent higher than what it was supposed to get in 2011-12 and 6.8 per cent higher than what it actually ended up with.
The civil government will get a mere Rs240 billion, slightly higher than current year’s Rs216 billion while subsides will swallow up Rs208 billion.
The subsidy to the poor through Utility Stores would be increased from Rs2 billion this year to Rs6 billion to provide relief during Ramazan. In addition, the allocation for BISP has been increased from Rs50 billion to Rs70 billion.
Jobs in an election year
The finance minister also said that fresh employment opportunities would be generated for 100,000 educated youth.
Tax cuts for the salaried class
The budget promises to reduce tax rates. Mr Shaikh announced income tax exemption from existing Rs350,000 a year to Rs400,000 for the salaried class and businesses. The income tax slabs were reduced to five from 17 and only the portion of income exceeding a specific tax bracket would be charged at higher tax rate. He said this would benefit all existing income tax payers.
He also said that major tax relief had been extended to capital markets and investments. As such profits and gains of venture capitals would be exempt from taxes until the year 2024. Likewise, investments, retirement funds, dividends received by banks would be exempt from withholding tax provisions on capital gain tax.
Re: Pakistan budget 2012
http://www.thenews.com.pk/Todays-News-13-15059-Secret-funds-show-unexplained-jump-of-Rs400-million
ISLAMABAD:** In the outgoing year 2011-12, the Intelligence Bureau (IB), which in 2009 was accused of sparing Rs270 million from the secret fund for the PPP government to push the ruling party’s political agenda in the Punjab, has got from the public kitty Rs400 million over and above the budgetary allocation, but without any explanation about the purpose for this supplementary grant.
**
According to the budget books ‘to meet the operational requirement of Intelligence Bureau’, Rs400 million were provided to the intelligence agency over and above the regular budgetary allocation.
While the poverty figures in the country are all-time high, the government of convicted Gilani provided supplementary grants of Rs79 million for the spare parts of two VVIP Gulf Steam aircraft, Rs45 million for repair and maintenance of PM’s House and another Rs15.7 million for Gilani’s official secretariat.
During his recent visit to India, President Zardari donated Rs91 million to the shrine of Ajmer Sharif from the supplementary budget instead of his own pocket.
**While the IB got an additional Rs400 million this year, the Foreign Affairs Ministry also received an additional Rs205 million for its secret service expenditure. Similarly, the Information Ministry, which too was allocated billions to buy media persons, got an additional Rs12.8 million under the head of Secret Service Expenditure.
**
There is, however, no explanation to the fundamental question who in the media or in other departments has been paid these huge amounts from the taxpayers money.Just for the media coverage of one single foreign tour of the prime minister to Mali, the Information Ministry had to get an additional Rs4 million. A Grade 19 officer of the Information Group, Mamoona Amjad, was provided over Rs8 million for her treatment.
On the record, the Information Ministry provided out of the supplementary grant Rs19 million to various press clubs, Rs12 million to Karachi Press Club and Rs25 million for the construction of APNS office in Karachi. Assassinated journalist Salim Shahzad’s family was given Rs3 million from the supplementary budget.
The Information Ministry also spent Rs50 million from the additional funding it received from the Finance Ministry, for special publicity campaigns. There is no detail of the nature of these campaigns.
Over and above the budgetary allocation, the Law Ministry distributed Rs339 million among the Pakistan Bar Council and bar associations.Huge supplementary grants in the shape of subsidies to Passco i.e. Rs71 million, Rs4.17 billion and Rs10.4 billion were given during this year besides subsidies of Rs17 billion, Rs1 billion and reimbursement of Rs216 million to the TCP. A subsidy of Rs5.4 billion was also given to the Railways whereas Pepco got a huge subsidy of Rs312 billion from outside the 2011-2012 budgetary allocations.
Re: Pakistan budget 2012
In short the Budget is going to give some headaches to the new govt for next two years!
Gillani and Zardari have made their pension secured... don't if this will continued in the next budget or even till next budget.
Re: Pakistan budget 2012
^ why do you think it will give headache to the new government?
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Headache or challenge.
Re: Pakistan budget 2012
President has formed a committee to create two new provinces from Punjab but funds have not been earmarked for the purpose. 
Re: Pakistan budget 2012
Headache nahi tu aur kiya hay!!!
Cunning Zardari must be smiling, because he have enough numbers in the parliament to get this budget approved! then call for early elections, that is dissolving assemblies and setting up care-taker govt by the end of this year!!!
From where the funds are going to come? the deficit is already claimed at Rs 1200 Billion… and there is no amount kept for pay-off the circular debt!!! so there you go, a big chunk out there waiting to either to be added on this or get printed and add a great deal on the Inflation % which is another tax!!! No other source of revenue to over come such huge deficit but to go to IMF again and get chitrol!!!
However the Budget have funnier parts as well!
The most funniest part is, NO NEW TAX HAVE BEEN IMPOSED, LOL, All ministers including Dr. Sheikh must have smiled at it!!! because even after lots of research and all other consultation, they couldn’t comeup with any new kind of tax to impose!!!
Govt says that the New target of FBR is something aroung Rs 2,500, now that is some 25% increase from the existing collection which after reviewing twice have brought under Rs 2,000… with no new taxes how come they are going to be close to this number??? one may argue that, it is simple you stupid critic, just by devaluing Rupee and printing more notes!!!
And then they say they have included 3000 MW in the system??? when that happened??? last i knew the short-fall between the demand and supply is no longer 4000 MW it is aroung 8000 MW… so where is that 3000MW, i guess govt wanted to say they have managed to increase the short-fall and here we said govt did nothing on power crisis…
But yea as EyEsOnSkY](http://www.paklinks.com/gs/members/eyesonsky.html) have mentioned, it can be challenging as well, there are still ways to manage the crisis but it certainly would take 2 or 3 good years by the next govt to get out of this!!!
Re: Pakistan budget 2012
Next year the government will have to pay off 4 billion dollars of loans, circular debt, deficit, plummeting exports, and now this pandora box of new provinces. Money has not been allocated but can be played around with that as a card, that we tried to create it.
Re: Pakistan budget 2012
Next year the government will have to pay off 4 billion dollars of loans, circular debt, deficit, ummeting exports, and now this pandora box of new provinces. Money has not been allocated but be can play around with that as a card, that we tried to create it.
Some things the new potential govt should be looking at and do their homework!!!
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One question, In the MQM's shadow budget did they declared Bhatta collection legal?
Re: Pakistan budget 2012
There are a few things, firstly the government has claimed they will be reducing subsidies on some things which will raise something in the tune of 400 billion rupees, secondly the massive petrol, gas charges and electricity bills (including the fuel surcharge) are all other avenues for minting money from the customer. I read an article in may according to which the government was expected to bag 25 billion rupees in the month of may alone on fuel charges alone, and now when the price if fuel has gone down dramatically it hasent been matched in Pakistan.
http://www.pakistantoday.com.pk/2012/04/01/city/islamabad/rise-in-pol-prices-sparks-public-fury/
Re: Pakistan budget 2012
Very entertaining video
must watch !!!
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Hafeez and other PPP guys are very proud of their new budget and their achievements 
How much is going into Education and Defence?
over the years, education budget has really gone down!
Restored attachments:
Re: Pakistan budget 2012
Nothing New In This Budget