The Services Sectors ii) If the growth rate in advances to SMEs, as defined by the SBP, is higher than the growth rate in advances then the additional amount will receive a tax credit of 10 percent. For example, if advances grew by 15 percent and total advances to SMEs grew from Rs 15 billion to Rs 25 billion, then the amount liable for tax credit is Rs 7.75 billion. With the tax credit at 10 percent, the reduction in tax liability is Rs 0.775 billion. A particular bank can enjoy both tax credits if it alters its lending policies in the desired directions. 24.5. General Government Services Characteristics of Sector This sector covers the compensation of employees of the Federal, Provincial and Local Governments. The growth of the sector is presented in Table 24.8. The total size of the sector is Rs 3.4 trillion as of 2019-20. Federal Government employee’s compensation is estimated at Rs 1159 billion in 2019­20 according to the Budget Documents. Therefore, the estimate is that the magnitude of Provincial and Local Governments combined is much larger at Rs 2265 billion. This implies that 34 percent of the wage bill is at the Federal level and 66 percent with lower levels of Government. Table 24.8: Level and Growth of Compensation of Government Employees*(Rs in Billion) at Current Prices Growth rate (%) at Constant Prices Growth rate (%) 1999-2000 232 314.3 2004-05 361 8.9 385.6 4.1 2009-10 778 15.3 499.0 5.2 2014-15 1818 17.0 758.7 8.4 2020-21 3670 11.7 1070.8 5.7 *This constitutes of the value added of the sector Source: PBS The annual growth rate, both in current and in constant prices, peaked during the period, 2009-10 to 2014-15. This was the period after the 7th NFC Award, when there was a large increase in fiscal transfers to the Provincial Governments. The level of employment is estimated at close to 1.5 million at the Federal level and approximately 3 million in the lower levels of Government. The average remuneration per 239