By Abdul Wajid Khan ISLAMABAD, June 16 (INP-WealthPK): The ministry of finance has said the government has presented a growth-oriented budget for the next financial year 2022-23, which is based on a well-thought-out strategy to control the fiscal deficit, reports WealthPK. According to an official document of the ministry, the budget 2022-23 gives a clear roadmap of the strategic priorities, revenue and spending policies of the government. The ministry said the government has set key priorities to be achieved during the financial year 2022-23. They include rejuvenating the development programmes; eliminating power outages; boosting agricultural production to attain food security; reducing fiscal deficit to restore fiscal sustainability; increasing agriculture and industrial production; banning imports of luxury items to save foreign exchange; reducing losses of public sector enterprises and enhancing tax rate on wealthy persons. The ministry said the main strategies of the federal government for 2022-23 are stabilsing economic growth; controlling increasing inflation; increasing revenues; enhancing exports; protecting vulnerable segments of society; improving socioeconomic conditions of poor people; controlling tax leakages and incentivising tax collection agencies. The ministry’s official document said main objectives of budget 2022-23 are to control fiscal deficit to boost growth; maintain primary balance at a sustainable level; protect social spending to support poor segments; mobilise resources by increasing tax net; increase non-tax revenue through cost recovery and rationalising regulatory fees; continue successful IMF programme; maintain a level of development budget to boost economy; fund special areas to ensure their development; control non-productive expenditures through austerity measures; target subsidy to deserving segments; keep expenditure within the approved budget allocation; and control prices of daily-use items through increasing supply of such items. According to the budget documents presented by the government to the National Assembly, the total outlay of the federal budget for financial year 2022-23 will be Rs9.502 trillion. According to the provisional estimates, government will generate total resources of Rs9,502 billion during 2022-23. Of total resources, target for tax revenue by Federal Board of the Revenue has been proposed at Rs7,004 billion while the target for total non-tax revenue has been projected at Rs2,000 billion. According to budget estimates, gross revenue receipts are Rs9,004 billion and provincial share under the National Finance Commission Award is Rs4,100 billion. Hence, after the transfer of provincial share, net revenue receipts are Rs4,904 billion. The government’s proposed non-banking borrowing during the year will be Rs1,996 billion while borrowing from the banks will be Rs1,172 billion. Net external receipts have been estimated at Rs533 billion while projected provincial surplus is Rs800 billion and target for privatisation proceeds has been proposed at Rs96 billion. On expenditure side, the government has proposed total current expenditure at Rs8,694 billion while development expenditure has been projected at Rs808 billion. Allocations under current expenditure include Rs3,950 billion for interest payments; Rs530 billion for pensions; Rs1,523 billon for defence affairs and services; Rs1,242 billion for grants and transfers to provinces and others; Rs699 billion for subsidies; Rs550 billion for running of civil government; Rs100 billion for disaster/emergency/Covid-19 and Rs100 billion for pay and pension. Budget deficit has been estimated at Rs4,598 billion, while with the help of surplus fund of Rs800 to be contributed by provinces, overall fiscal deficit has been estimated at Rs3,798 billion, which is equivalent to 4.9% of gross domestic product. Total financing from external and domestic sources has been estimated at Rs4,598 billion, which includes net external financing of Rs1,667 billion and net domestic financing of Rs2,835 billion, while Rs96 billion will be generated under privatisation proceeds. Primary deficit will be converted into the surplus of Rs152 billion, which is 0.2% of GDP. Nominal GDP will be increased to Rs78,197 billion in FY2022-23 compared to Rs53,867 billion in FY2021-22. Of FBR taxes (Rs7,004 billion), direct taxes target has been projected at Rs2,573 billion, while indirect tax target has been proposed at Rs4,431 billion. In direct taxes, income tax has been projected at Rs2,558 billion, Worker Welfare Fund at Rs6,947 million, Workers’ Profit Participation Fund at Rs7,462 million and Capital Value Tax at Rs515 million. Proposed targets for indirect taxes include Rs953 billion customs duty; Rs3,076 billion sales tax; and 402 billion federal excise duty. Of the total Rs4,099 billion provincial share under NFC, Rs2,029 billion will be transferred to Punjab, Rs1,029 billion to Sindh, Rs670 billion to Khyber Pakhtunkhwa and Rs370 billion to Balochistan. The government has allocated Rs699 billion for provision of different subsidies to general public, including Rs570 billion for power sector; Rs71 billion for petroleum sector; Rs7 billion for Passco; Rs17 billion for utility stores and Rs34 billion for others. Under non-tax revenue, a target of Rs750 billion has been set for petroleum development levy. The government has allocated only Rs500 million each for Naya Pakistan Housing Authority and mark-up subsidy on Naya Pakistan in budget 2022-23.