Addressing post-budget press conference on Saturday along with Information Minister Qamar Zaman Kaira on salient features of Budget, Dr. Sheikh said Budget stipulates measures towards self-reliance‚ spur growth through development program, protect vulnerable segments of society from impact of global recession through subsidies, social safety nets and huge allocation of Rs 183 billion to address power shortage challenge. WAPDA and power companies will also spend additional Rs 115 billion on power projects to ensure electricity to people on cheap rates.
He said Benazir Income Support Program BISP addresses poverty and was allocated Rs 50 billion in current year benefiting 3.5 million families who got cash transfers of Rs 1,000 per month. BISP allocation increased in new Budget to provide benefit to more families. Low income groups would be provided targeted subsidy by discounted selling essential foods items through Utility Stores in the country.
He said government spent Rs 50 billion to import 1.2 million tons fertilizer which was provided to farmers on reduced rate resulting in not only self-sufficiency in food but also creating surplus for export.
Dr. Sheikh said tax system has been simplified. Income Tax exemption limit‚ currently Rs 3.5 lakhs is being raised to Rs 4.0 lakhs. Tax rates also brought down which would benefit about 1.4 million tax payers.
He said salaries and pensions of government employees increased by 20 percent which would help mitigate impact of inflation. GST rate on different items brought down to 16% and items on which GST is less than 16% continue to enjoy existing rate which will ultimately benefit consumers.
He said turn over tax on businessmen income is being lowered from existing one to half percent in new budget. Import duty on number of items including raw materials used in pharmaceutical industry and stationery items reduced.
Finance Minister said budget also contains measures to address unemployment with allocations made to provide 60,000 internships to graduates and 40,000 to Master degree holders.
Copyright PPI (Pakistan Press International), 2012