Budget for 2010-11 to be presented on Saturday

The budget for next fiscal year 2010-11 would be presented in the National Assembly on Saturday at 5pm.

According to official sources, the total volume of the budget would be over Rs. 2.6 trillion and an amount of Rs. 450 billion would be allocated for the defence.

The twenty to twenty-five percent raise is suggested in salaries of government employees while Rs. 1.7 trillion is recommended as the target of tax recoveries.

An amount of Rs. 660 billion would be allocated for Annual Development Programme (ADP) while the immediate imposition of Value Added Tax (VAT) has been deferred as the federation and provinces did not agree on it.

The one percent increase in the Sales Tax has also been given in the budget while incentives have been given for the salaried people.

According to sources of Finance Ministry, the regulatory Duty on more than 250 edibles would be removed while increase of tax ratio on items of Cosmetics, Tobacco and Electronics is likely to be expected.

According to sources, the duty imposed on import of vehicles is likely to be reduced by 10 percent while 6 percent increase would be announced on prices of electricity. The establishment of new Power Distribution Companies would also be announced in the budget for fiscal year of 2010-11.

An amount of Rs. 450 billion would be allocated for Defence Sector while separate amount would be allocated for expenditures on war on terror.

Sources told that the budget for the projects of Energy, Communication, Housing and Infrastructure would be increased in the budget.

A special meeting of the Federal Cabinet would be held today (Saturday) with the chairmanship of Prime Minister Syed Yusuf Raza Gilani, in which, the final approval for the federal budget would be given. The federal cabinet would take the final decision regarding increase in salaries of government employees.

The ratio of inflation is likely to remain in double figure in the next fiscal year. Under new NFC Award, resources would be distributed among provinces while Khyber Pakhtoonkhwa would get one percent extra funds for elimination of the menace of terrorism. Separate funds would be allocated for the construction and development of Malakand Division and other affected areas.

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