The Federal budget for fiscal year 2006-07 received mixed reaction as the opposition parties members criticised the increased defence allocations. They said that the budget was not relief-oriented but a jugglery of figures.
The industrialists, however, welcomed tax exemption on import of cheap fertilisers, machinery, equipment and tractors. The ruling party legislators and office-bearers declared the budget as a historic document which allocated lion's share for water resources, farmers' friendly and subsidised electricity taxes. Teachers' bodies and APCA rejected the 15 percent dearness allowance, expressing dissatisfaction. They said it was ridiculous that they were waiting for at least 40 percent increase in salaries in the wake of price hike.
A former minister, Mukhtar Awan, PPP local leaders Ahmed Hassan Dehr, Khalid Hanif Lodhi, Khurshid Ahmed Khan, and M Salim said that 15 percent dearness allowance was not enough while budget did not address increase in house rent, conveyance allowance and other facilities. They said that farmers are not guaranteed a mechanism to ensure prices of their produces while sugar prices were increased by120 percent, pulses rates to 100 percent without any check.
The general public has been facing burden of heavy utility bills while the poverty ratio increased to 45 percent. PML-N office bearers Nafees Ansari, Noorul Hassan, Haji Boota, and Bilal Butt declared that the budget was unrealistic, and the defence budget was increased instead of reducing. The whole nation has been deceived in the name of indirect taxes while no relief was announced in oil and gas prices.
The industrialists include Nishtar Hospital BoM chairman Jalaluddin Roomi, PCGA chairman Muhammad Azam Warriach, MCCI president Abdullah declared the government had presented a people-friendly budget that would develop agriculture and dairy sectors besides opening job opportunities in rural areas. Rs 55 billion subsidy is given on electricity tariff that would bring positive effect on country's economy. Increase in salaries would further develop the standard of life, they said.
Multan City District Nazim Faisal Mukhtar, Punjab Minister for Agriculture Marketing Qasim Noon, Senator Javed Ali Shah, Mansab Ali, and Mujahid Ali Shah declared it historic, prosperous budget for the future. They said the government had set a new record of allocating increased development budget to Rs 415 billion (52.57 percent) besides 15 percent dearness allowance and subsidising pulses and withdrawing duty from computers, tractors and fertilisers.