Budget 2020: A Layman’s Point Of View

The Budget 2020-21 is right here. A dossier full of figures, and promises as usual.

But there is always something new apart from the deficit, which is always present in all the budgets so far.

So, what’s the new or positive in this budget 2020?

Let’s see in brief.

The total volume is Rs 7347 Billion of which the deficit is Rs 3747 Billion.

Yes, the deficit is more than 50%.

The second bombshell is the payment of interest i.e Rs 2946 Billion.

In dollars, its around 17 Billion. Imagine, if we invest this money in our economy.

The third alarm is no salary raise for the government employees.

The major allocations for the public sector are as under:

  • 470 Billion for Pension fund
  • 208 Billion for Ehsas program
  • 60 Billion in HEC fund
  • 70 Billion for Coronavirus fund

Some good points are:

  • FED on cigarettes increased from 65% to 100%.
  • FED on caffeine drinks increased from 13% to 25%.
  • Local mobile making is permitted with the incentive of the low sales tax rate.
  • No more advance tax on things like functions and gatherings, withdrawal from the pension fund, cash withdrawal from foreign remittances, etc.

So this is the budget 2020. I must say it won’t be different whoever had made it.

We can’t expect any better from the government under the pandemic situation.

What’s your opinion about the budget allocations?