Despite the fate of government employees as well as pensioners, a dramatic increase in salaries and pensions has been announced.
ISLAMABAD: The federal budget for the next financial year, 2020-21, is expected to increase the salaries and pensions of government employees by 20 percent.
The pension of retired government employees is expected to increase by 20%. The Ministry of Finance is considering various proposals to increase the salaries of government employees. Initially, various proposals were made to increase the salaries of government employees from 20% to 50%, but due to Korona, the salaries of government employees have been increased.
A 20% increase is being considered. It is also learned that the pension of retired government employees is expected to increase by 20%. It should be noted that the work of preparing proposals and recommendations for the budget for the next financial year has been expedited.
The target for economic growth next financial year is 3%. According to sources, the target for tax revenue is likely to be Rs 5,100 billion. No new tax will be levied in the budget for the next financial year.
The tax collection system will be improved. According to sources, the inflation rate target is set at 8.4 percent, and the fiscal deficit target at 5.8 percent. It is estimated that next year too there will be huge financial support from international financial institutions to bring the debt rate to 85 percent of GDP. It is proposed to set a target of ارب 4.6 billion for the current account deficit.
It is proposed to allocate Rs. 1402 billion in the defense budget next year. Rs 495 billion is likely to be allocated for running government affairs. According to sources, incentives will be provided for agriculture, IT construction, and industrial sectors. According to FBR sources, reduction in duties on about 2,000 imported items is proposed, while customs, excise, regulatory and additional customs duties are expected to be reduced by 2 to 3 percent.