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Introduction to Public Administration

Graded Discussion Board No. 2

Topic: “Budget”

Case:

The main focuses of the 2013-2014 Budget were overcoming the energy crisis, stabilization of the economy, developmental projects, cutting down of non-development expenditures and enhancing productivity through new growth strategies.

Some prominent features of the Budget are following:

Ø  Prime Minister house expenditure to be decreased by up to 44%.

Ø  Sales tax to be increased from 16% to 17%.

Ø  VIPs will not be allowed to import vehicles without paying duty; and on the other side Hybrid cars up to 1200cc will be exempt from duty while duty on Hybrid Vehicles from 1200cc to 1800cc is reduced by 25%.

Ø  Micro-finance scheme to be launched for youths and mark-up loans will be provided to them; and Rs. 3 billion to be allocated for PM Laptop scheme.

Ø  PM youth skill development program will be launched and Youth below the age of 25 year holding a master degree will receive a stipend of Rs. 10,000 per month during one year training program.

Ø  10% increase in pension has been approved while Rs. 8 billion allocated for social welfare programs, Ashiana Housing scheme would be launched in other provinces of Pakistan as in Punjab on the other hand Rs. 340 billion are allocated for development projects. 

Ø  Rs. 57 billion allocated for higher education, Rs. 31 billion reserved for Railways and Rs. 225 billion of the development budget have been allocated for the energy sector.

Ø  Commercial electricity account holders will be charged an additional 5% sales tax if they are not registered tax payers. When they fulfill the condition and registered, this increase will be withdrawn.

Ø  Merchant and traders tax rate to be set at 25% and adjustable withholding tax is being introduced for wedding ceremonies, and from the next fiscal year corporate tax should be decreased to 30 percent.

Ø  Income Support Fund will continue and the amount will be increased to Rs. 75 billion which is an 80% increase. On the other hand Employment opportunities will be created in the public and private sector.

Question:

Keeping in mind the above mentioned salient features, critically analyze the Budget 2013-14 and briefly describe its three negative aspects?

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Replies to This Discussion

1) Laptop scheme and Qarz-e-Hasna 5 billion to young people to start their own business. A very bad step taken instead of giving laptops and loan they should have focused on giving education so later he/she will be able to buy laptops for themselves. Loans will be given by State Bank creating further load on Bank.
2) Energy crisis major issue Pakistan cannot progress ahead because of this Pakistan Budget 2013 – 14.
3) Dollar rises to 108 from 98 and while imported hybrid cars are exempted from taxation will lead to further devaluation in currency.
4) 1800cc / 2500cc 25% tax exemption. Directly showing that the budget is suitable for upper class as lower and middle is still trapped in utility bills house expenses , children education expenses, So how could reducing tax will assist him to buy 1800 cc car.
5) Already sales tax is increased rising tariffs will further increase in prices of commodities, Thus more burden on public.

Khali 3 neagtive aspects likhnay hain budget kay?

yes bs 3 negative aspects nothing else

225billion energy k lye hy tu enough hi hy ye negative point tu na howa

negative point ye ha NAMRAH k iss ma sy ab tak iss py kitny lagay gay hain koi new plant nai bana koi crisis control k liye stategy nahi bnai gae loadshadding sy to maslay thek nahi hony na iss liye ye negative ha k energy crisis ko hal nai kiya gya koi iqdamaat nahi kiye gay

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