Punjab Finance Minister Hasnain Bahadur Dareshak announced 16 percent increase for pensioners who retired before 1994 and 8 percent increase for those who retired after 1994 effective from July 1, 2004, in the province.
He was winding up the debate on the provincial budget in the Punjab Assembly on Wednesday.
He categorically denied any discrimination between North, South and East, and emphatically stated that his government is adhering to merit strictly.
While admitting that the 15 percent increase in pays announced in the budget was insufficient, the government could not afford to do more in the face of meagre financial resources, he added.
Speaking about Vision 2020 program presented by Chief Minister Chaudhry Pervaiz Elahi, he stated that competitive report of each district of Punjab was being made with reference to it.
Replying to legislatures' demand of increase in funding for sports, he stated that the province would receive Rs 290 million for sports and Rs 800 million for population and their size was subject to that availability.
Dareshak vowed that his government was endeavouring hard to bring development ratio target to 50 percent level of non-development budget in the province.
Speaking about his government's efforts to develop southern region of Punjab, he vowed to complete Thal Remodelling Canal by next year.
Talking about removing subsidies, the finance minister, mentioning the case of millers, stated that these were being removed only on those sectors that have failed to deserve it.
Dareshak speaking about audit of district government funds stated that Provincial Director General Audit was doing it for the last six months.
Earlier, MPA Javed Lund, opening the debate on provincial budget 2004-05, termed it as balanced. Appreciating measures to boost education in the proposed budget, he stated they were welcome a step.
However, he asked the provincial government to introduce checks in education department for its right implementation.
Dr Syed Wasim Akhtar, speaking on a point of order, stated that Muttahida Majlis-i-Amal (MMA) would oppose moves aimed at weakening the Jamali's government.
Provincial Law Minister Muhammad Basharat Raja averred that if MMA really wanted to cooperate with the government at the centre than it should also extend its hands of co-operation to the provincial government.
MPA Arshad Baggo emphasised on more development endeavours for forestry. He demanded incentives for live and stock sector and pressed for industry status to the sector.
He dilated that keeping in view the WTO regime measures should be adopted to promote growth of fruit gardens in the province.
"We should try to grow crops that need less amount of water," he suggested.
Opposition MPA Rana Aftab asked the provincial government to ensure that Rs 68 billion fund allocated for district governments was accurately used.
Senior legislator Amjad Hameed Dasti emphasised on the construction of Kalabagh Dam. Raja Riaz, an opposition member of the assembly, asked upon improvement in working of district Nazims.
MPA Raja Shafqat Abbasi stated that poverty line of Punjab ie, 58 percent was higher than other provinces and the province must gets its share in the NFC on the ratio of population, he stressed.
MPA Mian Muhammad Aslam referring to Punjab's proposed budget stated that it was not poor-friendly and was evolved for areas of upper Punjab.
MPA Ghulam Farid terming the proposed budget as women-friendly stated that it contained enough measures to boost development of 50 percent female population of the province.
Punjab Minority MPA Pervaiz Rafiq stated that it had nothing to offer to minorities. Female legislator Shahnaz Salim demanded increased development funds for Fort Monoroo in her speech on the occasion.
Legislator Jehanzeb Gill stated 63,000 schools presently existing in Punjab were lacking basic facilities. MPA Malik Muhammad Ahmad advised that competent and professional experts should handle development projects proposed in the budget 2004-05.
A number of other legislators also participated in budgetary debate. The House was, later, adjourned for 10:00am on Thursday.