Pakistan unveils $43 billion budget for 2011-2012

Pakistan unveils $43 billion budget for 2011-2012

2011-06-03 22:03:16 GMT+7 (ICT)

ISLAMABAD (BNO NEWS) -- Pakistan on Friday unveiled the $43 billion (Rs 3.7 trillion) budget for 2011-2012 at the National Assembly amidst opposition protests, Ary News television reported.

Finance Minister Abdul Hafiz Sheikh presented the budget while opposition lawmakers protested as the session began. They stood up on their seats and began chanting "U.S. slavery unacceptable, Federal Budget unacceptable."

The budget deficit was estimated at 4 percent of the Gross Domestic Product (GDP) or about $9.89 billion (Rs 850 billion). Sheikh said the inflation was much lower due to the government policies to end poverty.

The Defense budget was increased to $5.7 billion (Rs 495 billion) in comparison with the $5.13 billion (Rs 442 billion) allocated in the current budget for the fiscal year that ends on June 30.

In addition, a 15 percent salary raise for federal government employees was also announced. General sales taxes were reduced by 1 percent to 16 percent while the tax rate for commercial imports was set at an additional 3 percent to the value.

Out of the total budget, $8.48 billion (Rs 730 billion) was set aside for development, $3.48 billion (Rs 300 billion) for federal development and $5 billion (Rs 430 billion) for provincial development projects.

Finally, the government set a total revenue (tax and no-tax revenue) target of $31.76 billion (Rs 2.732 trillion) from which the Federal Board of Revenue aims to collect $22.69 billion (Rs 1.952 trillion).

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