Budget 2020-21 has been the center of attention for all the Pakistanis including business, commercial and residential sector. From a common person to industrialist it was an important affair for everyone to find out what government is going to unfold in this yearly budget for pandemic accounting. Following the pandemic condition all around the globe, there is a global economic crisis. Situation is Pakistan is no different in fact, since many years we are struggling to improve the economic conditions.
The COVID-19 pandemic proved to be a major challenge for the government of Pakistan Tehreek e Insaf this year. Although the studies and discussions by analysts show that, the government failed to achieve the targets of tax collection, income and other economic accounting goals in the year. The lockdown trigger the slump in the economic conditions and made things crucial for the economic team of the government.
Despite of everything government announced the budget of Rs7, 294.9billion this year with the deficit of 3,500 billion. For the people in the new budget 2020-21 there are no new taxes on the people including health care, food products diet supplements as well. In fact, the overseas Pakistanis got tax exemptions on investments and even auto industry got a little part of the tax relaxation as well. In many sectors, sales tax go the reduction up to 12% and Rs.208 billion are allocated for the Ehsas Program to support the citizen affected due to Corona outbreak.
On the contrary, there is no raise in the salaries of government official as well as for the pensioners. It seems to be a relief budget but the income expansion is one of the missing factors in the budget details. The industries will have an impact of the budget as it will be a hard years for the government development projects. Due to the reduction in collections and COVID-19 situation there is a huge cut down on the development sector. The local industry accounting in Pakistan will not be able to participate in the government projects at the same time.
Although government made is possible to bring some effective reforms for the common person and businesses in Pakistan to stand on their own. However, in many circles the tax relaxation and collection system is under debate and conflicted. Traders associations and business communities are not completely happy about the planning as they find many points in the system unclear.