Pak budget shows 30pc rise in outlay
Thursday, 12 June 2008
ISLAMABAD, June 11(Reuters): Pakistan's fledgling government unveiled a budget for 2008/09 Wednesday showing a near 30 per cent rise in total outlay to 2,010 billion rupees.
Naveed Qamar, the privatisation minister who became de facto finance minister after a coalition partner pulled its ministers out of the cabinet last month, presented the budget to the National Assembly.
Qamar has already targeted a reduction in the fiscal deficit to 4.7 per cent of GDP in 2008/09 from an expected 7 percent for 2007/2008.
The coalition, formed in March after defeating President Pervez Musharraf's allies in an election a month earlier, inherited an economic mess from its predecessor, with both the fiscal and current account deficit ballooning largely as a result of surging world oil and food commodity prices.
Total resource availability projected at 1,836 billion in 2008/09, compared with 1,394 billion in 2007/08.
Net revenue receipts for 2008/09 projected at 1,111 billion, 23 per cent more than 2007/08. Development spending through the Public Sector Development Programme will be increased to 550 billion rupees, 20 per cent more than in 2007/08.
The budget targets a fiscal deficit of 4.7 per cent of gross domestic product in 2008/09, compared with a 7 per cent deficit in 2007/08.
GDP growth is forecast to slow to 5.5 per cent in 2008/09 from 5.8 per cent in 2007/08.
The current account deficit is targeted at 6.0 per cent of GDP in 2008/09. The central bank estimated the deficit would be in the range of 7.3-7.8 per cent in 2007/2008.
Average inflation is targeted at 12 percent in 2008/09 compared with 11 per cent in 2007/08.
Standard rate of general sales tax increased to 16 per cent from 15 per cent last fiscal
Customs duty on import of 300 non-essential and luxury items will increase up to 35 per cent
Minimum wage of unskilled workers will be increased from 4,600 rupees a month to 6,000 rupees
Basic salary for federal government employees and members of the armed forces to be increased by 20 per cent. - Government workers pension payments are to be increased by 20 per cent. Minimum pension is proposed to be increased to 2000 rupees from 300 rupees.
Earlier report adds: Pakistan will slash fuel, food and fertiliser subsidies in its 2008/09 budget statement Wednesday, to tackle its fiscal and current account deficits.
The total outlay of the budget is estimated at 2,010 billion rupees, according to the government's "Budget in Brief" document.
Some 550 billion rupees is earmarked for development spending, though the report noted it expected an operational shortfall of 77 million rupees in development spending.
Naveed Qamar, the privatisation minister who became de facto finance minister after a coalition partner pulled its ministers out of the cabinet last month, presented the budget to the National Assembly.
Qamar has already targeted a reduction in the fiscal deficit to 4.7 per cent of GDP in 2008/09 from an expected 7 percent for 2007/2008.
The coalition, formed in March after defeating President Pervez Musharraf's allies in an election a month earlier, inherited an economic mess from its predecessor, with both the fiscal and current account deficit ballooning largely as a result of surging world oil and food commodity prices.
Total resource availability projected at 1,836 billion in 2008/09, compared with 1,394 billion in 2007/08.
Net revenue receipts for 2008/09 projected at 1,111 billion, 23 per cent more than 2007/08. Development spending through the Public Sector Development Programme will be increased to 550 billion rupees, 20 per cent more than in 2007/08.
The budget targets a fiscal deficit of 4.7 per cent of gross domestic product in 2008/09, compared with a 7 per cent deficit in 2007/08.
GDP growth is forecast to slow to 5.5 per cent in 2008/09 from 5.8 per cent in 2007/08.
The current account deficit is targeted at 6.0 per cent of GDP in 2008/09. The central bank estimated the deficit would be in the range of 7.3-7.8 per cent in 2007/2008.
Average inflation is targeted at 12 percent in 2008/09 compared with 11 per cent in 2007/08.
Standard rate of general sales tax increased to 16 per cent from 15 per cent last fiscal
Customs duty on import of 300 non-essential and luxury items will increase up to 35 per cent
Minimum wage of unskilled workers will be increased from 4,600 rupees a month to 6,000 rupees
Basic salary for federal government employees and members of the armed forces to be increased by 20 per cent. - Government workers pension payments are to be increased by 20 per cent. Minimum pension is proposed to be increased to 2000 rupees from 300 rupees.
Earlier report adds: Pakistan will slash fuel, food and fertiliser subsidies in its 2008/09 budget statement Wednesday, to tackle its fiscal and current account deficits.
The total outlay of the budget is estimated at 2,010 billion rupees, according to the government's "Budget in Brief" document.
Some 550 billion rupees is earmarked for development spending, though the report noted it expected an operational shortfall of 77 million rupees in development spending.