Tax target set at Rs1.7t for 2011

ISLAMABAD: The federal government has sent budgetary estimates for the next three years including the budget for the next fiscal year to the International Monetary Fund.

Volume of the budget is Rs2,281 billion and budget deficit is Rs992 billion for fiscal year 2011, a report said.

The budget deficit is estimated at 6 per cent of GDP. The volume of GDP will be Rs16,660 billion, tax collection target Rs1694 billion, non-tax revenue Rs475 billion and defence expenditure Rs477 billion.

The size of Public Sector Development Programme has been reduced to Rs300 billion. Tax collection target for 2010-11 was stated in the report as Rs1,694 billion, 2011-12 at Rs2,052 billion and Rs2,454 billion for 2012-13.

Tax-to-GDP rate is considered to gradually increase to 10.2 per cent in the next fiscal year, 11.1 per cent in 2011-12 and 11.9 per cent in 2012-13. According to projections, revenue from non-tax revenue and petroleum levy for next three years has been set at Rs475 billion in 2010-11 budget, Rs510 billion for 2011-12 and Rs530 billion for 2012-13.

The document further states that the government has kept Rs135 billion target for petroleum levy on petroleum products in the coming budget of 2010-11, Rs145 billion for 2011- 12 and the same for 2012-13. Government may increase real GDP in the next three years to 5 per cent. Volume of GDP would be increased from Rs14,972 billion to 16,660 billion on market price with GDP growth of 4 per cent.