Home Local Federal Government has announced the Budget for Fiscal Year 2019-2020

Federal Government has announced the Budget for Fiscal Year 2019-2020

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Federal Government has announced the Budget for Fiscal Year 2019-2020

As per the Budget for Fiscal Year 2019-2020, the government has announced a 10% reduction in the salaries of the members of the cabinet. In line with a supportive approach, the Military had also voluntarily withdrawn the anticipated increase in the budget, earlier.

For the civil servants from Grade-1 to Grade-16, 10% salary increment has been announced, while for the officers of Grade-17 to Grade-20 an increase of 5% was announced. Salaries of the Officers of Grade 21 & 22 remain unchanged. Massive 25% salary increment was announced in the budget for Special Private Secretaries, Private Secretaries, and Assistant Private Secretaries working for the Minister, State Ministers, Parliamentary Secretaries, Additional and Joint Secretaries.

Special Allowance for disabled persons has been doubled with an increment of Rs.1,000. The minimum wage has been set at Rs.17,500 and flat 10% has been increased on pensions.

The government also announced the Ehsaas and Sehat Sahulat Program for the betterment of people. Under Ehsaas program, the government plans to issue ration cards to 1 million people. The program will also cater to 80,000 people, by the issuance of interest-free loans. Establishment of old age homes will also be done for senior citizens under the same program.

With a budget of Rs.43 billion, the government will enlist 3.2 million families under the Sehat Sahulat program to provide better health facilities.

Salaried Class has also been given a relief in this budget with the announcement of 11 tax slabs. Details of the structure are as under:

Taxable Income up to Rs.600,000 p.a.0%
From 600,001 to 1,200,0005% on amount exceeding 600,000
From 1,200,001 to 1,800,000Rs. 30,000 + 10% amount exceeding 1,200,000
From 1,800,001 to 2,500,000Rs. 90,000 + 15% amount exceeding 1,800,000
From 2,500,001 to 3,500,000Rs. 195,000 + 17.5% amount exceeding 2,500,000
From 3,500,001 to 5,000,000Rs. 370,000 + 20% amount exceeding 3,500,000
From 5,000,001 to 8,000,000Rs. 670,000 + 22.5% amount exceeding 5,000,000
From 8,000,001 to 12,000,000Rs. 1,345,000 + 25% amount exceeding 8,000,000
From 12,000,001 to 30,000,000Rs. 2,345,000 + 27.5% amount exceeding 12,000,000
From 30,000,001 to 50,000,000Rs. 7,295,000 + 30% amount exceeding 30,000,000
From 50,000,001 to 75,000,000Rs. 13,295,000 + 32.5% amount exceeding 50,000,000
Above 75,000,000Rs. 21,420,000 + 35% amount exceeding 75,000,000

Few Key Highlights from Federal Budget by Shajar Capital.

https://shajarcapital.com/

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