The document summarizes key aspects of Pakistan's 2014-15 budget. It outlines the total budget outlay of Rs. 4302 billion with revenues of Rs. 2225 billion and expenditures of Rs. 4302 billion. Major revenue sources include net revenue receipts (52%), external receipts (20%), and estimated provincial surplus (7%). The largest allocations are for general public services (60%), development expenditure (19%), and defense services (16%). The budget aims to achieve GDP growth of 5.1% and inflation of 8% while increasing spending on projects, reducing the deficit, and implementing tax reforms.

1. BUDGET 2014-15
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2. BUDGET 2014-15
Ather Waqas
(athar375@gmail.com)

3. SEQUENCE
Introduction
Components of Budget
Budget at Glance 2014-15
Tax Reforms
Comparison and Analysis
Conclusion
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4. • Budget 2014-15 delivered by Finance Minister Ishaq Dar
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INTRODUCTION

5. COMPONENTS OF BUDGET
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6. HEADS OF BUDGET 2014-15
BUDGET
REVENUE
Tax Revenue
Non Tax
Revenue
EXPENDITURE
Development
Expenditure
General Public
Service
Defense
Services
Subsidies
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7. BUDGET 2014-15
Total Budget
Outlay Rs. 4302
bn
Resource
Availability
Rs. 4074 bn
Budget Deficit
Rs. 228bn
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8. BUDGET 2014-15
Net Revenue
Receipts,
2,225 , 52%
Net Capital
Receipts,
691 , 16%
External
Receipts,
869 , 20%
Estimated
Provincial
Surplus, 289
, 7%
Bank
Borrowing,
228 , 5%
SOURCES OF FUNDS(Rs. 4302bn)
Net Revenue
Receipts
Net Capital Receipts
External Receipts
Estimated Provincial
Surplus
Bank Borrowing
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9. BUDGET 2014-15
General Public
Services,
2,560 , 60%
Development
Expenditure,
839 , 19%
Defense Affairs
and Services,
700 , 16%
Subsidies,
203 , 5%
EXPENDITURES OF FUNDS (Rs. 4302bn)
General Public
Services
Development
Expenditure
Defense Affairs and
Services
Subsidies
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10. BUDGET 2014-15
Foreign Loans
Repayments,
333 , 13%
Interest
Payments, 1,325
, 52%
Pension, 215 ,
8%
Grants and
Transfers, 371 ,
15%
Running of Civil
Government, 291
, 11%
Provison for Pay
and Pension
Reforms, 25 , 1%
GENERAL PUBLIC SERVICES (Rs. 2560 bn)
Foreign Loans
Repayments
Interest Payments
Pension
Grants and Transfers
Running of Civil
Government
Provison for Pay and
Pension Reforms
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11. DEFENSE BUDGET
ARMY
47.9%
Rs.331bn
PAF 21.28%
Rs. 149bn
NAVY 10%
Rs.71bn
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Total Outlay Rs. 700bn

12. SALIENT FEATURES
Features 2014-15
Net Revenue Receipt Rs. 2225bn
Provincial Share Rs. 1720bn
GDP Target 5.1%
External Receipt Rs. 869bn
PSDP Rs. 1175bn
Bank Borrowing Rs. 228bn
Expected Inflation 8%
Foreign Reserves US $ 22bn
74 Projects of Motorways, Highways
and Bridges
Rs. 113bn
Tax Free Imports of Machinery 2 years
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13. TAX REFORMS

14. INCOME TAX
2013-14 2014-15
Corporate Tax 34% 33%
Withholding
Tax
For Companies 6% 8%
Other than
Companies
7% 10%
Initial Depreciation on Buildings 25% 10%
NGOs
On certain
conditions
100% exempted
Flying Allowance equal to Basic
Salary
- 7.5%
Sindh Pension Fund - Exempted
Advance Tax Collection on
Gatherings, function
5% 10%
Sale of Immoveable Property - 0.5%
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15. WITHOLDING TAX RATES
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CORPORATE TAX
NON CORPORATE
TAX
SUPPLY OF GOODS 4% 4.5%
SERVICES
RENDERED
8% 10%
EXECUTION OF
CONTRACTS
7% 7.5%
IMPORTS 5.5% 6%

16. INCOME TAX
Five year income tax exemption
on plants for locally grown fruits
◦ Balochistan Province,
◦ Malakand Division, Gilgit-
Baltistan
◦ FATA
Profits and gains on coal mining
projects in Sindh exempted
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17. INCOME TAX
Corporate tax reduced to
20% for setting up industry
(2014-2017)
◦ 50% Foreign Direct
Investment
Tax reduced 50% having
disabled Person NIC
◦ Less than 1 million
taxable income
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18. SALES TAX
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19. SALES TAX
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2013-14 2014-15
Local Supply of Tractors 16% 10%
Imports of Cochlear Implants
System
- Exempted
Value from CNG Stations
On certain
conditions
17%
Supplies Made to Unregistered
Persons
- 1%

20. SALES TAX
For Agriculture, high efficiency irrigation equipment and
greenhouse farming equipment exempted
Import of plant, machinery and equipment exempted
from sales tax, for
◦ Gilgit-Baltistan,
◦ Balochistan Province
◦ Malakand Division and FATA
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21. EXCISE DUTY
2013-14 2014-15
General Tariff Rate 30% 25%
Cement 400/ton 5% on retail price
FED on int. Air Travel 3840/ticket 5000/ticket
Chartered Flights - 16%
Reduction of Duty Rate
on Telecom Services
(ISB and Balochistan)
- 1%
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22. EXCISE DUTY
Duty on hybrid electric vehicles rationalized – 50%
reduction up to 1800cc and 25% reduction on to
above 1800cc.
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23. CUSTOM DUTY
2013-14 2014-15 Remarks
Max. General
Tariff rate
30% 25% 5% decreased
On UPS 20% 15% 5% increased
Networking
Equipment
5% 10% 5% decreased
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24. CUSTOM DUTY
Duty on hybrid electric vehicles
◦ 50% reduction up to1800cc
◦ 25% reduction on to above1800cc
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25. COMPARISON AND ANALYSIS

26. SOURCES OF FUNDS
0
10
20
30
40
50
60
2014-15 (Rs. 4302 bn) 2013-14 (Rs. 4057 bn)
51.5
53.8
16.1 14.8
20.2
17.6
6.7 4.55.3
9.3
Net Revenue Receipt Net Capital Receipt
External Receipt Estimated Provincial Surplus
Bank Borrwing
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27. APPLICATION OF FUND
0
10
20
30
40
50
60
2014-15 (Rs. 4302 bn) 2013-14 (Rs. 4057 bn)
59.5
55.3
19.5 21.2
16.3 15.5
4.7
8
5.3
9.3
General Public Services Development Expenditure
Defense Affairs and Services Subsidies
Bank Borrwing
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28. COMPARISON
2013-14 2014-15 Remarks
Population 184m 188m 4m increased
Defense budget Rs.623bn Rs. 700.2bn
37bn
increased
Gdp growth rate 4.14% 5.1% 1% increased
Public debt Rs. 14bn Rs. 15bn 1bn increased
Inflation 8.7% 8%
0.7%
decreased
Exports Rs. 20.1bn Rs. 21bn 1bn increased
Imports Rs. 36.7bn Rs. 37.1bn
0.4bn
increased
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29. COMPARISON
2013-14 2014-15 CHANGE %
Budget 4057 4302 7.9% increased
Revenue receipt 2183 2225 16% increased
Min. Wages 10000 12000 12% increased
Pension 5000 6000 20% increased
Per capita
income
US $ 1339 US $ 1386 3.5% increased
Industrial growth 1.37% 5.84% enhanced
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30. CONCLUSION
Reforms for special areas
Rectified tax collection method
Tax reforms
Encouraged for investment
opportunities
Expenditure on projects for growth of
economy
New policies for reduction of deficit
Increased Defense budget
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31. REFERENCES
www.finance.gov.pk
www.fbr.gov.pk
www.statpak.gov.pk
www.wikipedia.com
www.businessdictionary.com
www.deloitte.com/pk
www.finance.gov.pk
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32. Q&A
THANK YOU
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