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Federal Budget 2024-25: Key Takeaways, updates including allocations & targets

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2 years ago

ISLAMABAD: Finance Minister Muhammad Aurangzeb presented the federal budget for the fiscal year 2024-25 on Wednesday. The key targets of Budget 2024-25 include targeting GDP growth at 3.6 percent, inflation at 12 percent and budget deficit at 5 percent of GDP.

The government aims to increase revenue, reduce unnecessary expenditure and shift towards a market-driven economic model. Key initiatives include reforming the pension system, privatization of state-owned enterprises and efforts to promote the agriculture and IT sectors.

Budget 2024-25 also includes relaxation of regulatory framework to attract business investment and boost exports.

Highlights from Budget 2024-25

101 percent increase in the development budget
81pc has been allocated for ongoing schemes and 19pc for new schemes
25 percent increase in salaries for BPS1-16
22 percent increase in salaries for BPS17-22
15 percent increase in pension
Difficulties for non-filers to buy property
End in tax exemption proposed
17 major development projects included in the budget

Major allocations in Federal Budget 2024-25

Provinces – Rs7438 billion
BISP – Rs597 billion
National Highway Authority – Rs180 billion
Energy sector – Rs253 billion
Public Sector Development Programme (PSDP) – Rs1400 billion
Karachi IT Park – Rs8 billion
Cabinet Division – Rs75.77 billion
Climate Change Division – Rs6.25 billion
Defence – Rs2,122 billion
Interior Division – Rs9 billion
Petroleum Division- Rs3 billion
Telecommunication – Rs28 billion
SUPARCO – Rs35 billion
Railway Division – Rs43 billion
Revenue Divison – Rs17 billion
Water Resources –
Quaid-e-Azam Health Tower in Islamabad – Rs5 billion
Development projects in the poorest districts – Rs7 billion
Karakoram Highway project – Rs6 billion
Digitalization of the national economy – Rs4 billion
Establishment of Danish school in Islamabad – Rs2 billion
Establishment of 7 Danish schools in Azad Kashmir and Gilgit-Baltistan – Rs5 billion

Defence Allocation

In the federal budget, Rs2,122 billion has been reserved for defense. It reflects a 19.29 percent increase as the allocation for fiscal year 2023-24 was Rs1,804 billion.

The federal government had allocated Rs920 billion in the federal budget for 2017-18, Rs1,100 billion in 2018-19, Rs1,153 billion in 2019-20, Rs1,289 billion in 2020-21, Rs1,370 in 2021-22 and Rs1,563 billion in the budget for 2022-23.

Energy Sector allocation

Referring to the energy projects, the minister said Rs21bn has been allocated for a 600 MW power plant in Jamshoro, Rs14bn for a 500 kV transmission line in Lahore, Rs18bn for the Karachi Coastal Power Project, and Rs45bn for the Mohmand Dam Hydro Power Project.