Pakistan Budget Highlights
Omar Ayub Khan presented the budget to the lower house of Parliament, proposing a record 1.3 trillion rupees (US$21.7 billion; euro16.9 billion) in government spending. He promised better social services, water and sanitation and infrastructure development. The Pakistani Financial Year starts on 1st July.
++ 415 billion rupees would be allotted to public sector development -- a 52 percent increase from the 272 billion rupees allocated in the budget for the current fiscal year ending June 30.
++ 50 billion rupees (US$830 million; euro645 million) for reconstruction of areas devastated by October's 7.6-magnitude quake that killed about 80,000 people.
++ The government aims to bring inflation down to 6.5 percent in the new fiscal year.
++ Government will provide subsidies totaling about 20 billion rupees for fertilizers, sugar, cement and wheat.
++ Pakistan's economy would grow by 6.6 percent this fiscal year, down from 8.6 percent last fiscal year, which was the fastest pace of growth in two decades.
++ Despite easing tensions with archrival India, defence spending was budgeted to rise to 250 billion rupees up from 223 billion rupees specified in last year's budget, although that figure was later revised to 240 billion rupees because of overspending.
++ fiscal deficit of 4.2 percent of GDP, and a proposed 2 percent tax on real estate purchases to help offset the increase in budget expenditures
++ Strong economic growth in recent years has lifted tax revenues to record levels, but only about 1.3 million people in Pakistanpay income tax.
++ Rs 290 million have been allocated for President allowance and staff while Rs 539 million fixed for Prime Minister Secretariat in next fiscal budget 2006-07.
++ Rs 43.907 billion allocated for pension expenses, Rs 5.03 billion for Foreign Affairs, Rs 1.35 million for Information and Broadcasting, Rs 2.191 billion for federal capital, Rs 1.006 billion for National Assembly Secretariat, Rs 564 million for Senate Secretariat, Rs 31.177 billion for Pakistan Railways, Rs 355.534 billion for Privatization and Investment and Rs 50 billion to be spent for the uplift expenses of Prime Minister Secretariat.
"We will make sure that Pakistan's armed forces are armed with the most modern weapons and their needs will be fulfilled...Pakistanis a nuclear power. We will protect our nuclear assets at every cost and we will provide whatever resources it will need," said Khan.