Daily Times

ISLAMABAD: Federal Government has decided to give good news for government employees by raising their salaries and pensions from 10 percent to 20 percent.

The budget for the financial year 2016-17 with total outlay of Rs 4.4 trillion will be presented by finance minister Ishaq Dar on June 3.

Finance ministry sources told Daily Times that all the preparations have been made for presenting upcoming budget. Increase ranging between 10 percent to 20 percent in salaries and pensions of government employees has been proposed in the budget and this way government will have to incur additional expenses to the tune of Rs 50 billion.

Sources disclosed that a sum of Rs 900 billion are likely to be earmarked for defence in the upcoming federal budget while Rs 770 were allocated for the current year.

It is suggested to allocate Rs 850 billion for development expenses for next year as compared to Rs 700 billion during current year PSDP.

Sources disclosed that tax recoveries target has been set at Rs 3600 billion for the upcoming fiscal year 2016-17. Tax recovery target was fixed Rs 3104 billion for the current financial year and tax recovery has been made to the tune of Rs 23 billion during 10 months.

Government has decided to slap more taxes amounting to Rs 300 billion on the directives of IMF and has also decided to tighten noose against big traders following its failure in amnesty scheme.

In the light of directives of FBR Intelligence Wing notices are being issued to tax defaulters. Announcement will also be made to do away with SROs amounting to Rs 110 billion.

Government has decided to maintain concessional exemption for top ranking officer’s including generals, judges, ambassadors appointed in other countries and bureaucrats.

Sources revealed that 6 percent of GDP is proposed to be set target of economic growth in the upcoming budget. During the current fiscal year GDP ratio remained 5.5 percent and government has reached 4.3 percent of GDP.

Government has decided to announce special concessions for new investors in the next budget and the concessions are likely to be given on import of automobile sector and agricultural machinery and pharmaceutical products.

Government intends to announce some packages for promotion of Islamic banking in the country.

Steps are being taken to scale up exports and a sum of Rs 600 billion have been earmarked in Export Development Fund for this purpose under which road shows will be held in different countries for promotion of Pakistani products.