Pakistan Federal Budget 2013-14


Sr. # Federal Budget 2013-14 Title Download
1
Federal Budget Details of Demands for
Grants and Appropriations 2013-14 Current Expenditure
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2
Federal Budget Details of Demands for
Grants and Appropriations 2013-14 Development Expenditure
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3
Demands for Grants And Appropriations 2013-14 (White Book)
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4
Federal Medium Term Budget Estimates for Service Delivery 2013-16
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5
Explanatory Memorandum on Federal Receipts 2013-14
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6
Estimates of Foreign Assistance 2013-14
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7
Annual Budget Statement 2013-14
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8
Budget in Brief 2013-2014
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9
Federal Budget Speech 2013-2014 (English Version)
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10
Federal Budget Speech 2013-2014 (Urdu Version)
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The allocation under the head of Economic Affairs in the budget 2013-14 has been projected at Rs 52,262 million, which is higher than the revised estimates for 2012-13 by 5.1%, but lower by 2.6% as compared to budget estimates 2012-13. Major share of this head goes to Agriculture, Food, Irrigation, Forestry and Foods, which has been increased to Rs 20,430 million in budget estimates 2013-14 as compared with Rs 17,478 million in revised estimates 2012-13 and Rs 15,759 million in budget estimates 2012-13.

The NFC recommended that the Federal Government and Provincial Governments should streamline their tax collection systems to reduce leakages and increase their revenues through efforts to improve taxation in order to achieve a 15% tax to GDP ratio by the terminal year i.e. 2014-15. Provinces would initiate steps to effectively tax the agriculture and real estate sectors. Federal Government and Provincial Governments may take necessary administrative and legislative steps accordingly.


Water

Allah (SWT) has blessed Pakistan with one of the best water resources in the world. We have also inherited an extensive network of irrigation canals, water courses and barrages and our early leadership had the vision of building such mega projects as Tarbela and Mangla that have enabled us to support our agriculture, so central to our economic life. But unfortunately we have failed to add to such critical projects or maintain these precious assets.

To meet the growing needs of water it is imperative that we build new reservoirs and use every cusec of available water for development of energy. 16. It is this vision in view that is reflected in our development plan allocation for the water sector. We are investing Rs.59 billion for the water sector projects that will include such projects as Katchi Canal (Dera Bugti and Nasirabad), Rainee Canal (Ghotki and Sukkur), Kurram Tangi Dam (North Waziristan), Extension of Pat Feeder Canal to Dera Bugti, Gomal Zam Dam (South Waziristan), Ghabir Dam (Chakwal), completion of Mangla Dam raising, lining of water courses in Sindh and Punjab, flood protection and drainage schemes all over the country.


Broadening of Income Tax

Agriculture sector enjoys exemption from payment of federal tax but this facility has been misused as untaxed non agriculture income is concealed in the garb of agriculture income. In order to check the misuse of law, it is proposed that credit of agricultural income shall be given only if provincial income tax on such income has been paid. It will also facilitate in enhancing the revenue of Provinces from agricultural income.

It is proposed to allow the aerated beverage industry to pay tax on capacity or fixed basis. It would not only facilitate them, but would help them contribute a handsome additional amount to the exchequer. It would eliminate corruption and make the system transparent and clear. It will also encourage the industry to expand. The detailed notification for implementing the new regime will be issued shortly.

At present, imported edible oil is subject to tax. However, canola seed is being freely imported. This is not only a disparity but also hurts the local oil seed production. To remove this disparity, it has been decided to impose beginning from China and Central Asia to the last limits of the West.

In case of federal excise, manufacturers of edible oil and ghee complained of distortion, as those using locally produced oil or imported oilseeds were not paying any tax. To remove this anomaly, locally produced oil and imported oilseed are being subjected to the similar tax regime as imported edible oil.

The five export-oriented sectors were enjoying zero-rating on local supplies over the past several years, which has recently been changed to a reduced rate regime. However, even expensive imported goods like branded clothes, leather bags, and sports goods are enjoying the reduced rate of 2%. Some items enjoying the reduced rates have multi-purpose use in other industries, which creates distortions. To remove these problems, finished goods and items having multi-purpose use are being taken out of the reduced rate regime.

Certain important measures are being initiated to enhance the efficiency of the tax machinery and increase its enforcement capacity. These measures are explained here.