PTI Shadow Budget 2015-16

8/9/2019 PTI Shadow Budget 2015-16

1/24


2/24

Budget Philosophy

Reforms-led Growth

– Job Creation

Massive Tax relief

– nvestment promotion

– Pro Poor

!airness in Taxes

– Redu"ing Burden on poor

– #idening tax net


3/24

Budget Philosophy

n"entives for ndustry and $gri"ulture

– Redu"tion in nput Cost

–nvesting in Resear"h % Te"hnology

– Prote"tion against dumping

&rasti" Reforms in !BR

!ull autonomy

Govt expenditure Reform

'igh powered Commission to review all publi"

se"tor expenditure


4/24

Main Measures

Tax Relief(

)ales Tax rate redu"ed to *+,.

#ithdrawal of G&C

Corporate Tax rate redu"ed by .ea"h year

– To fall to 20% in 3 years

– Lowest in the region


5/24

Main Measures

Tax Relief(

Sales Tax rate 12.5%

Corporate Tax 20%*

G!C 0%

Total relief / Rs 012 bn

3 45ver 6 7ears8


6/24

Main Measures

mmediate mpa"t(

&iesel pri"e to fall by Rs *0 % litre

Petrol pri"e to fall by Rs 9 % litre

)ales tax relief of Rs billion for"onsumers

Rs *1 billion relief on G&C

!ertili:er pri"es to de"line


7/24

Main Measures

mpa"t(

Transportation "ost to "ome down

Positive e;e"t on pri"e of food items

Positive e;e"t on general "ommer"e

n


8/24

Main Measures

Tax measures(

@se of =$&R$ list of 6,+ million

#iden the tax net

Redu"tion in exemptions

Property "apital gains tax

$d?ustable Minimum asset tax


9/24

Main Measures

Tax measures(

#indfall proAts tax

Redu"ing s"ope of Presumptive Tax

Regime

n"reasing Capital Gains Tax oneuities


10/24

Main Measures

Tax measures

Rs bn

"e#$tion in exe&ptions100

'se of ()!") #ataase +2

&pro,e# enfore&ent -o&pliane 0

Capital gains tax on property trnx 15

/in#fall prots tax 13

ntro#$tion of &ini&$& asset tax 10


11/24

Main Measures

mproving enfor"ement > "omplian"e(

no&e tax

otential a,ailale "s 100 n

Sales tax

otential lea4age "s 10 n

/ithhol#ing tax regi&e

50 n


12/24

Main Measures

)avings through e"ien"y(

"e#$ing lea4ages in S!

31 ratio of pro6et ost etween p$li 7 pri,ate

setor

rioriti8ation of S!

eople an# growth fo$se#

ntro#$tion of $li9ri,ate artnership :o#el

;:<

ringing in pri,ate setor in,est&ent for p$li goo#


13/24

Main Measures

)avings through e"ien"y( 4Contd,8

&pro,e# e=ieny in power setor

"e#$ing losses

Stritly follow eono&i or#er of #ispath

"e#$ing lea4ages in >"

Cleaning $p ref$n# pay&ent syste&

"e#$e &is9#elaration ? $n#er9in,oiing

"estr$t$ring of $li Setor @nterprises ;S@s<


14/24

Main Measures

)avings through e"ien"y(4Contd,8

"e,iew of all large Go,t pro$re&ent ontrats

L(G Contrat

Go,t p$rhase of o&&o#ities

:etro $s ro6et

Sa,ings in $rrent expen#it$re

&pro,e# Go,t ash - #et &anage&ent

Large sale iss$e of s at the wrong ti&e


15/24

Dxpenditure

Main expenditure items(

&efen"e ( Rs 0+E bn -1+%

=$P ( Rs, 6E bn !ully !unded

P)&P ( Rs FEbn -3%

!$T$ ( Rs E bn )pe"ial Pa"age

)alaries ( Rs *26 bn -10%


16/24

Dxpenditure

'igh-priority spending

*, !BR

Aperational $#get inrease for a$tono&o$s >"

Argani8ational #e,elop&ent progra&

n,est&ent in worl# lass T

ro,i#e $tting e#ge enfore&ent 7 o&pliane

/ill #ra&atially re#$e o=ialsB #isretion

Sta training - D" #e,elop&ent


17/24

Dxpenditure

'igh-priority spending 4Contd,,8

+, Civil servi"e reform

Sta training - D" #e,elop&ent

"eorgani8ation

6, Ddu"ation and 'ealth 4!ederal8

'pgra#ing of shool?ollege failities

'pgra#ing E$ality of teahing

'pgra#ing hospitals 7 &a4e the& a$tono&o$s


18/24

Dxpenditure

'igh-priority spending - 4Contd,8

1, nvestment

Tehnology 'p9gra#ation >$n#

nenti,es for new in,est&ent y S:@s

Fero #$ty on plant an# &ahinery

, Dxport promotion

Strategi Tra#e oliy initiati,es


19/24

Dxpenditure

'igh-priority spending 4Contd,8

9, Dnergy

>o$s on fast tra4 hy#el

n,est in energy #eli,ery infrastr$t$re

Crash progra& of $pgra#ing r$ral ? $ran

transfor&er apaity.


20/24

Dxpenditure


F, #ater

hasha to e o&plete# on war footingwith f$ll f$n#ing

(eel$& hel$& naning iss$es to e

re&o,e#

nitiati,es to a##ress #rin4ing water risis


21/24

Dxpenditure


0, $gri"ulture

rotetion against #$&ping of s$si#i8e# pro#$e

"e#$tion in inp$t osts for far&ers #$e to #erease in

sales tax.

"esearh

S&all far&er welfare she&es

2, )ills development

:anpower export

&pro,e# pro#$ti,ity - ino&es


22/24

PT )hadow Budget


23/24

Than you


24/24

)ummary of Reform )"enario

All reform scenarios Moderate

2015-16 2016-17 2017-18

% of "potential" captured 40% 50% 60%

(A) ncrease in resources 204 510 !!1

1 #e$enue measures 84 225 408

2 mpro$in enforcement & compliance 40 1'2 '81

' a$ins trou efficienc* 80 15' 202

(+) ,se of resources 285 '66 415

4 o.erin of ta/ rates 240 2!1 '44

5 n$estment incenti$es (Ms) 15 25 25

6 apital & i-priorit* spendin '1 50 46

() et resource a$aila3ilit* (A - +) -82 144 576

Documents

PTI Shadow Budget 2015-16