Budget for the year 2011-12 to be presented today

By jazbablog - Thu Jun 02, 9:58 pm

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ISLAMABAD: Budget for the next fiscal year 2011-12 with total outlay of over 2.7 trillion rupees will be presented in parliament today.

Finance Minister Abdul Hafiz Sheikh will present the budget today in National Assembly.

Sources told that government employees’ salaries and pension are likely to be increased by 10 to 20 percent in the budget. Approval will also be accorded for setting the target of tax recoveries at Rs 1952 billion besides annual development budget to the tune of Rs 730 billion.

Development budget of federation will stand at Rs 430 billion and Rs 430 billion will be disbursed among the provinces.

A sum of Rs 155 billion will be allocated for construction of infrastructure and Rs 122 billion will be earmarked for social sector.

GDP growth target will be fixed at 4.2 percent in the budget. 17 percent sales tax is likely to be slapped on computer, soft ware, mineral oil, CNG Kits, ambulances, agro machinery, CNG buses, fertilizers, pesticides, surgical tapes, ultrasound gel, aircraft ships, soft wares and other goods.

Government will provide subsidy of Rs 186 billion under electricity head and Rs 43 billion on other goods. A sum of Rs 18 billion are likely to be allocated for Bhasha dam.

Sources told Online agriculture growth target is likely to be set at 3.4 percent, GDP growth target 4.2 percent, fiscal deficit target 4.5 percent, industrial development target 3.1 percent while sales tax on electricity is likely to be enhanced from 17 percent to 30 percent.

Exemption in sales tax on import of machinery being used in power generation is likely to be announced in the budget. Duty rate on import of cigarette is likely to be reduced from 20 percent to 5 percent and duty exemption being allowed on life saving drugs, health, education, books, stationery and tuition is likely to stay.

Inflation rate is likely to be set at 13 to 14 percent. Budgetary allocation for the provinces under NFC award will be made 1.22 trillion.