Budget 2019-2020 A Safe walk by government when crisis were devastating
A budget with a total outlay of Rs 7.022 trillion for the fiscal year 2019-20, registering growth of 30 percent against the revised budget of Rs 5.385 trillion for current fiscal year (2018-19 total federal revenues have been estimated at Rs 6.717 trillion which is 19 percent higher than the previous year’s revenues of Rs 5.661 trillion. Federal Board of Revenue (FBR estimated to be recorded at Rs 5.555 trillion which is 12.6 percent of Gross Domestic Product (GDP).total revenue collections, an amount of Rs 3.255 trillion would be distributed among the provinces under 7th National Finance Commission (NFC) Award, which is 32 percent higher than the current year’s share of Rs 2.465 trillion.Net Federal Revenues for the upcoming fiscal year have been estimated at Rs 3.46 trillion against the revenues of Rs 3.07 trillion during the current fiscal year, which is 13 percent higher. Similarly, he said the federal budget deficit would be Rs 3.56 trillion, whereas the provincial budget surplus is estimated to be at Rs 423 billion for the year 2019-20. Fiscal deficit for the coming year is estimated at Rs.3.137 trillion or 7.1% of the GDP as against 7.2% of the GDP in the financial Year 2018-19. inherited by the incumbent government was over Rs 31,000 billion, foreign debt and liabilities were around US$97 billion, foreign exchange reserves with State Bank of Pakistan had fallen from $18 billion to less than $10 billion and Current Account Deficit touched the historical mark of $20 billion, it had to take measures to control the situation.
Measures taken by the government to stabilize the economy, increased import duties to cut the trade deficit by $4 billion in 10 months. $2 billion remittances were increased, Rs.38 billion per month electricity circular debt was brought down to Rs.26 billion per month. The government also mobilized $ 9.2 billion from China, UAE, and Saudi Arabia in the balance of payment. Higher exports were witnessed as knitwear exports increased by 16%, readymade garments by 29%, fruits by 11% and vegetables increased by 18%, & basmati rice by 22%.
International Monetary Fund (IMF) for a $6 billion programmed. Once approved by the IMF board, this will have benefits such as generating additional international assistance of $2 – $3 billion from the World Bank and Asian Development Bank at relatively lower interest rates and achieving stabilization of the economy and build a sustainable platform for growth.
“A deferred payment facility of $3.2 billion for purchase of oil and gas products from Saudi Arabia helped in lowering pressures on foreign reserves it is expected that the current account deficit for the year will reduce by $7 billion this year.