ISLAMABAD, APR 27 (DNA) – Newly-appointed Finance Minister Miftah Ismail has announced the federal budget for the fiscal year 2018-19 with a total outlay of Rs 5.66 trillion as against Rs4.75 trillion for the outgoing year.

According to the budget estimates, the target of tax collection for the next financial year is being fixed at Rs4450 billion, with the estimated 15 per cent increase.

During his speech, the minister said: “The GDP growth rate was 5.4pc last year ─ it has now grown to 5.8pc, the highest in 13 years,” he recalled. “Today we are the 24th largest economy in the world.”

“In the last five years, inflation has been kept below 5pc which was up to 12pc when we took over. The budget deficit will remain restricted to 5pc this year,” he said.

According to the budget estimates, the target of tax collection for the next financial year is being fixed at Rs4450 billion, with the estimated 15 per cent increase.

During his speech, the minister said: “The GDP growth rate was 5.4pc last year ─ it has now grown to 5.8pc, the highest in 13 years,” he recalled. “Today we are the 24th largest economy in the world.”

“In the last five years, inflation has been kept below 5pc which was up to 12pc when we took over. The budget deficit will remain restricted to 5pc this year,” he said.

Salient features of the budget 2018-19

• The outlay of the budget is Rs5.9 trillion

• The tax revenue target is Rs4.435 trillion

• Rs1.1 trillion apportioned for defence sector

• The GDP growth rate target is fixed at 6.2 per cent for the next year

• The finance minister estimates forex reserves to come to about $15bn in FY18-19

• Rs688 million rupees will be spent for alleviation of poverty in the coming fiscal year

• Rs800 billions will be given in agricultural loans

• Budgetary allocations for Benazir Income Support Program (BISP) have been increased to 124.7 billion rupees for the next financial year as opposed to previous 121 billion rupees.

• Rs10 billion earmarked for Prime Minister’s Youth Program

• No duty or tax has been imposed on dairy farmers and livestock

• The fiscal deficit is expected to be Rs2,029 billion

• Inflation rate will be contained below 6 percent

• The exports target for next year is set at Rs27.30 billion.

• The defence budget is expected to be Rs1.050 trillion

• Salaries and pensions of employees are increased by 10 per cent.

• Rs25 billion special package for Karachi announced

• A hefty amount of Rs220 billion will be earmarked for subsides on power, textile, water, construction of small dams.

• The federal expenditure has been set at Rs1010 billion while the provincial at Rs1030 billion

• The budget for development projects will be Rs201 billion.

• Rs39 bn allocated for Pakistan Railways

• Rs137 bn allocated for Gwadar infrastructure development Road network, seaport, airport, hospital to be constructed in Gawadar

• The 7th NFC award will have a reduced federal share

The tax target for the Federal Bureau of Revenue (FBR) has been fixed at 4435 billions in the new annual budget.

The minister said that the tax recoveries during the past five years of the government have registered an increase of Rs. 2000 billion.

It is learnt that the cumulative size of the federal Public-Sector Development Programme (PSDP) and provincial Annual Development Programmes (ADPs) would be Rs2.043 trillion, including Rs1.030 trillion federal PSDP and Rs1.013 trillion provincial ADPs.