Govt decides to cut PSDP budget by Rs 146bn: sources

The government has decided to cut Public Sector Development Programme (PSDP) budget by Rs 146 billion and raise indirect tax target by Rs 60 billion after just six months of the present budgets approval from the parliament, reported Dunya News on Tuesday.The planning commission sources revealed that the government has decided to lower federal governments PSDP budget to Rs 300 billion after excessive expenses on defence and lesser tax revenues. The income tax target has also been lowered by Rs 44 billion due to difficulties in achieving the existing target. Sales tax target will be increased by Rs 48 billion, excise duty by Rs 8 billion and custom duty by Rs 4 billion to overcome the expenditures. The government has increased the annual tax target to Rs 1,396 billion from Rs 1,380 billion.