PM chairs meeting over budget recommendations for Centre, Punjab, KP

ISLAMABAD: Prime Minister Imran Khan has chaired a meeting to review recommendations for the next budget of the federal, Punjab and Khyber Pakhtunkhwa (KP) governments, ARY News reported on Sunday.

The meeting was attended by Shah Mehmood Qureshi, Shibli Faraz, Abdul Hafeez Shaikh, Hammad Azhar, Asad Umar, Lieutenant General (Retd) Asim Saleem Bajwa, Abdul Razak Dawood, Dr Ishrat Hussain, Zulfiqar Bukhari, Punjab Chief Minister Usman Buzdar, KP CM Mahmood Khan, provincial finance ministers and other high-level officials.

Punjab CM Usman Buzdar gave a briefing to the premier regarding the recommendations for the budget of the fiscal years of 2020-21. The KP chief minister briefing PM Khan over the provincial government’s expenditures and revenue.

Read: Govt not to impose new taxes in upcoming budget: Abdul Hafeez Shaikh

“The world is facing uncertainty related to the economy due to coronavirus pandemic and the new budget is being present amid the unusual situation. I prefer to ensure the cuts in non-development expenditure in order to increase the allocations for development spendings.”

The premier urged increasing employment in those areas facing disasters of the pandemic besides giving relaxation to the private sector to complete their projects. PM Imran Khan also directed the provincial governments to further reduce unnecessary expenditure and promotion of development projects to upgrade the health sector.

Earlier on Saturday, it emerged that the federal government had decided to present a tax-free budget for the fiscal year 2020-21 in a step to provide relief to the masses.

Read: Budget 2020-21: PM Imran directs to provide all possible incentives to industry

Sources privy to the matter said that the government will not introduce any new tax in the forthcoming budget while harsh measures will be taken to curb tax evasion. Federal Board of Revenue will be given special directions/powers to stop tax evasion in the country.

The government will curtail its expenditures and will not increase the pension of the retired government employees, the sources added.

“International Monetary Fund (IMF) is emphasizing the government to set Rs5,100 billion tax collection target for the fiscal year 2020-20 while the Finance Division proposed to set a target of Rs4,600 billion.”

In view of the ongoing tense situation in the region, it will be difficult for the government to cut the defence budget, the sources said and added Rs1,400 billion would be allocated for the defence.