Salient Features of the Federal Budget for Year 2006-07
 
ISLAMABAD: Federal Minister of State for Finance Umer Ayub Khan presented over Rs 1500 billion budget for FY 2000-07  in the National Assembly budget session here. 

  • Sales tax to be re-levied on computer hardware.

  • Rs 35 billion earmarked for the Khushhal Pakistan Programme.

  • Provincial share in PSDP will increase by 50 pc in next five years.

  • Export has increased by US $19 billion during last seven years.

  • Poor people between 18 to 40 years age could borrow soft loans under the Self-employment Scheme from July 2006 for opening PCOs, establishing utility stores or purchasing transports. 

  • Rs 82. 16 billion new projects in the budget year 2006-07 would be imitated by foreign channels.

  • The government has allocated Rs. 47749.730 million for Water and Power Division (Water Sector) in Public Sector Development Programme (PSDP) for the fiscal year 2006-07. Similarly, an amount of Rs. 52214 million has been earmarked for WAPDA (Power Sector) in Public Sector Development Programme (PSDP) for the fiscal year 2006-07.

  • Rs. 10 billion allocated in the budget for the construction of Bhasha-Diamer Dam and three other major dams in the country.

  • Tractor import exempted from custom duty.

  • Two-years contractual employment to be given to son of government servant, free education for daughter upto age of 18 years, and free medical treatment to widow of the deceased government servant. 

  • Pulses to be made available at the country-wide utility stores where dal masoor to be sold at Rs 31, dal channa at Rs 30, dal moong at Rs 53 and dal mash at Rs 58 per kg.

  • Annual income tax to be levied on Rs 1,50,000 annual income.

  • A Rs 1 billion new progroamme for poultry industry is going to be launched.

  • Rs 80 million are being invested to augment farmers’ income.

  • Pension for government employees being increased to Rs 1300 from Rs 1000.

  • An amount of Rs 50000 million has been allocated to Earthquake Reconstruction and Rehabilitation Authority (ERRA)in the PSDP. 

  • The provinces have been allocated an enhanced allocation for budget estimates 2006-07 in their PSDP. The increase is Rs 47000 million when compared with budget estimates 2005-06.

  • The size of Public Sector Development Programme for 2006-07 is Rs 435 billion. This shows an increase of 59.9% and 38.7% over the budget and revised estimates 2005-06 respectively. 

  • The expenditure on General Public Services (inclusive of debt servicing, transfer payments and superannuation allowance) is estimated at Rs 504 billion, which is 57.3 % of the current expenditure.

  • The share of current expenditure in total budgetary outlay for 2006-07 is 66.9 % as compared to 74.5 % in revised estimates for 2005.06.

  • Current expenditure shows a decrease of 4% over the revised estimates of 2005-06, while development expenditure will increase by 39 % in 2006-07 over the revised estimates of 2005-06.

  • The external receipts in 2006-07 are estimated at Rs 239 billion. This shows an increase of 12.7 % over the budget estimates for 2005-06.

  • The capital receipts (net) for 2006-07 have been estimated at Rs 16 billion against the budget estimates of Rs 5] billion in 2005-06.

  • The provincial share in federal revenue receipts is estimated at Rs 378 billion during 2006-07, which is 33% higher than the budget estimates for 2005-06. 

  • Net revenue receipts for 2006-07 have been estimated at Rs 705 billion indicating an increase of 9.6% over the budget estimates of 2005-06. 

  • The resource availability during 2006-07 has been estimated at Rs 1100 billion against Rs 980 billion in the budget estimates of 2005-06.

  • The total outlay of budget 2006-07 is Rs 1315 billion. This size is 19.7 % higher than the size of budget estimates 2005-06. 

  • Senior citizens minimum age limit fixed at 60 years, down from 65 years.

  • Rs 65 billion would be spent on rehabilitation of quake-hit victims.

  • 15 pc to 20 pc pension rise announced.

  • Relief announced for industrial workers.

  • Special allowances of in three categories Rs 1000, Rs 700 and Rs 500 to be given to teachers on performance basis.

  • Govt. employees Conveyance Allowance enhanced by 50%.

  • Special grant announced in the budget for provinces.

  • GDP growth rate in current year 6.6%.

  • Widows will be provided lifetime free medical facility in government hospitals. 
    Government employees will be awarded 15% dearness allowance from July.

  • The minimum salary of workers was increased to Rs. 4000 per month from current Rs. 3000.

  • PSDP will create 4,00.000 jobs in the country. 

  • The per capita income will enhance to double in next 10 years.

  • Total budgetary outlay is rupees 1.5 trillion.

  • Defence expenditure for next fiscal year set at Rs250 billion 27 billions more than the previous year.

  • Defence budget is equal to 3 % of GDP.

  • Public Sector Development Programme amount was set at Rs. 415 billion, while Rs. 115 billions have been allocated for the provincial development programmes.

  • Provincial share in the PSDP will be enhanced to 45% during next five years.

  • Development expenditure will be Rs435 billion, 38.7% higher than current fiscal year.

  • Rs50 billion to be spent on earthquake related reconstruction activities.