For the third consecutive year, PML-N government fails to succeed all set goals to be achieved in budget 15-16.
On Thursday, while PM Nawaz Sharif was recovering after his heart surgery, Finance Minister Ishaq Dar gave a summary on government’s economic performance and all other matters praising the government’s achievements.
The budget for the year of 15-16 was totally unfavorable for agricultural department. Agriculture almost contributes 21% to national output.
But however, Dar giving some hope to agricultural sector states that budget for 16-17 is all good for them by reducing tariffs in agricultural tube wells.
The government also failed to achieve its target upon growth, savings and investment and industrial sector. However, in some areas the performance was quite good and growth in construction, electricity generation and banking sectors were quite impressive.
Giving an answer to a question, Dar replied that unemployment is not consistent with the growth rate. Dar also added that the government does not need any more funds from the International Monetary Fund and it will focus on its growth.
There were also some achievements, the inflation rate remained same around 3%, which has been recorded as lowest in last ten years. He added that rupee also remained stable against United States dollar. The fiscal deficit has been reduced from 8.2% to 4.3%.
However, the proposals for budget for the year of 16-17, approved by federal cabinet were presented by Dar on Friday, which goes till Rs 4.42 trillion.
The government gave Rs 800 billion budget to the development sector, which is Rs 100 billion higher than last budget.
Last year the excise duties on cigarettes, tobacco products have also been increased from 15% – 25%, but this year it further increased 10% – 15%
keeping these goods expensive.
This proposition of the budget has been termed as negative for telecom sector as the government increases sales tax on imported mobiles which will affect the growth of 3G/4G subscribers. But a sum of Rs 11.4 billion has been allocated for telecom sector.
The government has also increased the allocation of BISP from Rs 102 billion to Rs 115 billion (giving it increase of Rs13 billion)
The public always hopes that the budget would give them relief, but it always goes for those who make the most noise and perform the worst. As there have been an increase in taxes, goods and other things.