Minister for Industries Hammad Azhar presented the budget for fiscal year 2020-21 on the floor of the National Assembly on June 13, 2020 amid slogans and desk-thumping by opposition members.
Azhar said the government was going ahead with an “expansionary fiscal policy” which was the need of the hour after the economy had contracted due to the coronavirus pandemic in the outgoing fiscal year.
An expansionary fiscal policy means the government is trying to use economic tools to increase spending by individuals and businesses. This can be done in a host of ways such as by cutting taxes so that households and businesses have more disposable income at hand or by reducing interest rates in an attempt to discourage saving or both.