Pakistan Budget 2008 - 2009, Jang & The News Special Coverage!

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12-06-2008

KSE welcomes federal budget 2008-09

KARACHI: The Karachi Stock Exchange (KSE) has welcomed various measures taken in new federal budget for fiscal year 2008-09 presented on Wednesday.

According to a KSE statement issued here, the KSE reviewed the FB 2008-09 presented in National Assembly by Finance Minister, Syed Naveed Qamar, especially in the context of the capital market development in the country.

It welcomed various measures announced by the Naveed Qamar and termed it a balanced budget despite all political turmoil, persistent rising inflation and worsening of all key economic the economy by strengthening the agricultural & industrial sectors.

It has enhanced the government's credibility amongst the investors and will help in rehabilitating and enhancing the confidence of both domestic and international investors, the statement stated.

Govt to implement party manifesto: Naveed Qamar

ISLAMABAD: Federal Minister for Finance Naveed Qamar has said the People’s Party has not forgotten the poor masses and the party manifesto will be implemented after achieving the economic stability.

Addressing post-budget press conference in Islamabad on Thursday he said a transparent procedure will be adopted for the Benazir Card for poor. The poor persons from all union councils of the country will be selected through NADRA records, he further said.

He said in the first month the payments under Benazir Income Support Programme will be made on the computerized national identity card.

He said pay raise in the budget has been announced over the basic pay

He said National Finance Commission (NFC) would be constituted soon, once the federal government receives the nominations from all the four provinces. The government had received nominations from only two provinces and the commission would be constituted after receiving the nominations by two other provinces.

Answering to a query, the Minister said the PPP government regarded the National Accountability Bureau a useless body as it was used as a tool for political victimisation by the past regimes.

"My party thinks it useless. Prime Minister Gilani had announced to abolish the NAB in his opening statement on the floor of National Assembly after taking oath. However, as it falls into Schedule 6, we would abolish the NAB following the proper procedure," he said and added that some other institution would be formed to carry on the accountability process.

On load-shedding, the Minister said the government would try to end the load-shedding by the end of next year.

"In order to meet the energy requirements, we would focus on the hydal power projects and besides Bhasha Dam and Neelum-Jehlum project, other smaller dams would also be constructed," he said.

Provinces share from federal revenue increased

ISLAMABAD: The provinces share in federal revenue receipts will be jacked up to Rs568.337 billion for 2008-09 against revised estimates of Rs457.202 billion for 2007-08, indicating a net increase in share of federating units by Rs111.131 billion for the next financial year.

According to the Budget 2008-09 documents, total net transfers to provinces witnessed a decline by Rs26.168 billion during the outgoing fiscal year 2007-08.

For the budget 2008-09, the share of Punjab will be increased up to Rs292.758 billion against the revised estimates of Rs228.838 billion for the province during the outgoing financial year. Sindh's share will be jacked up to Rs168.924 billion in the financial year (FY) 2008-09 compared to the revised estimates of Rs141.591 billion for 2007-08.

The share of NWFP increased to Rs72.212 billion for 2008-09 against the revised estimates of Rs56.699 billion for 2007-08. The share of Balochistan increased marginally as it would receive Rs34.443 billion in FY 2008-09 against the revised estimates of Rs30.074 billion for 2007-08.

The NFC Award has been amended under the Distribution of Revenue and Grant-in-Aid Amended Order 2006 by the Musharraf regime. The PPP government also decided to continue the interim Award of NFC for distributing the resources among the federating units for the fiscal year 2008-09.

Under the amended order by Musharraf, it was decided that the provinces share would be jacked up by one percent in every fiscal year. The share of provinces stood at 41.50% by 2006-07 which increased to 42.50% by 2007-08. During the budget 2008-09, the share of provinces has been increased to 43.75%.
For distribution of revenue, the provincial governments shall be assigned in each financial year a share equal to the percentage of the net proceeds of the taxes and duties levied and collected by the federal government which include tax on income, wealth tax, capital value tax, taxes on sales and purchase of goods, export duty on cotton, customs duty, federal excise duty excluding the excise duty on gas charged at well head and any other tax which may be levied by the federal government.

Out of the sum assigned to the provincial governments under Article 3 an amount equal to net proceeds of 1/6th of Sales Tax shall be distributed among the provinces.

The share of provinces will be distributed on the sole criteria of population and Punjab's share will be 57.36%, Sindh 23.71%, NWFP 13.82% and Balochistan 5.11%.

Grant-in-Aid to provinces, there shall be charged upon the Federal Consolidated Fund each year a sum of Rs27.750 billion as grant-in-aid of the revenues of the provinces. These resources will be distributed among the provinces as Punjab's share will be 11%, Sindh 21%, NWFP 35% and Balochistan 33%.

The net proceeds of divisible pool are arrived by deducting 5% collection charges by the federal government. The federal share in the federal divisible pool for the year 2008-09 is 56.25% with the remainder 43.75% going to the four federating units.

Mixed reaction to budget

ISLAMABAD: The federal budget presented in the National Assembly on Wednesday elicited mixed reaction from a cross-section of the society as some termed it balanced while others particularly the opposition felt it anti-poor.

The opposition termed the budget 2008-09 a ‘frustrated, anti-poor and lacking ownership’ and said even the government has failed to fulfill its promises with the people they had made during elections.

“The budget did not offer any incentive for industry and will lead to only creating more unemployment in the country,” said Leader of the Opposition Chaudhry Pervaiz Elahi while talking to the newsmen here at the parliament house after the presentation of budget.

Elahi said the budget offered no relief for the poor and had also failed to implement the promises, which the PPP made during the election campaign. He said there was no mentioning of any kind of reduction of prices of flour, ghee, pulses and sugar in the budget.

He said the government has announced to allocate Rs 75 billion for the construction of dams and provision of electricity, but it did not mention Kalabagh dam. “Kalabagh dam should be constructed which is vital for progress and prosperity of the country,” he said.

Criticising the government policy regarding fertilizer, he said during the PML-Q tenure the prices of fertilizer was Rs 1,200 and now it stands Rs 3,000 so the farmers will not get any sort of benefit by subsidy.

He said the present government was carrying the programmes of previous government but had changed their names. “We will support those programmes such as lady health workers and so on,” he added.

He said the government has not provided relief to the industrial sector and the construction sector will also not be developed which will increase the difficulties of the labourers. He said the price of cement has already been increased.

To a question, the opposition leader said it is the only government, which supports the long marches and processions against itself. He said about one billion rupees are being spent on the long march.

Agencies add: President Jamhoori Watan Party (BWP) Talal Bugti said Rs 275 billion defence budget being presented by the government in office had no justification as the country nation were passing through a very grave situation in which such massive defence budget was an excess and injustice with the people.
People from various walks of life appreciated the allocation of Rs 34 billion for the poorest of the poor under the Benazir Income Support Programme. Meanwhile, the federal ministers including Raja Pervaiz Ashraf, Sherry Rehman, Neelum Jabbar Chaudhry and Adviser to PM on Interior Rehman Malik appreciated the budget, terming it poor-friendly and balanced.

MNAs from the treasury benches, including Hina Rabbani Khar and others also expressed their satisfaction on the budget. Meanwhile, former finance minister Ishaq Dar lauded the government for presenting ‘best budget’ under prevailing economic situation of the country.

Best steps have been taken in the fiscal programme to improve efficiency of the agricultural and industrial sectors, Ishaq Dar told media men outside the parliament house after the budget-session.

He termed the budget ‘Awami’, and said efforts were made to provide direct relief to the poor segments of the society under the Benazir Income Support Programme. Meanwhile, Adviser to the Prime Minister on Industries and Production Mian Manzoor Wattoo termed the budget pro-poor and said that Rs 1,000 assistance to poor families will help them stand on their feet. He appreciated the proposed measures to increase industrial and agriculture production.

JUI-F Chief Maulana Fazlur Rehman said the budget will provide relief to common man. He said although the business community is under pressure owing to law and order situation, but despite these difficulties, there are many incentives for them.
PML-N leader Tehmina Daultana termed the budget balanced in given economic conditions. Minister for Information Technology Qamar Zaman Qaira said it was our effort to present the budget in accordance with the wishes of people and the finance minister was successful in his endeavour.

Minister for Labour and Manpower Syed Khurshid Shah said the increase in the salaries and pensions of government employees and armed forces are hallmark of this budget. Ms Donia Aziz of PML-Q termed the budget a replica of previous budgets presented by last government. She said our government provided electricity in the far-flung areas.

Defence gets Rs296.077bn

ISLAMABAD: The government on Wednesday allocated Rs 296.077 billion for defence for the fiscal year 2008-09, a 3 per cent less allocation in view of the 11 per cent inflation rate.

Finance Minister Naveed Qamar said all relevant details of the defence expenditure were available for review and debate in parliament.“It would go a long way in bringing greater fiscal discipline by inducing more economical use of available resources,” said the minister.

Experts say the government would lay details of defence spending in parliament for the first time, as the finance minister announced a major policy shift in the final allocation of the defence budget for 2008-09.

“In a major policy move, the government has decided to do away with the past practice of presenting a single-line budget for defence,” Naveed Qamar said during his budget speech.The overall increase in defence expenditure from Rs 275 billion during the outgoing fiscal year to Rs 296.077 billion for the incoming financial year would be taken as “decrease of defence expenditure” in real terms because of the 11 per cent inflation.

This 7.1 per cent increase in defence expenditure would not bode well, as Pakistan needs a stronger defence because of the raise in defence expenditure by India in March last.“The less allocation amounts to compromising the defence needs,” said an expert.

The original defence allocations for 2007-08 were Rs 275 billion but were revised to Rs 277.265 billion, a minor increase of only Rs 2.2 billion. A break-up of defence allocation is as follows: Rs 99.59 billon have been earmarked for pay and allowances of armed forces personnel; Rs 82.84 billion for operational expenses; Rs 87.63 billion for physical assets; Rs 25.73 billion for civil work and Rs 11.17 billion for defence arrangements.

In the past, it was almost a one-liner defence budget announced by the government and details of defence expenditure had never seen the light of the day as it was considered a ‘holy cow’. The major chunk of the defence spending is always incurred on pay and salaries of the armed forces personnel while little amount is spared for the purchase of new military hardware.

NWFPCCI terms budget people-friendly

PESHAWAR: President NWFP Chamber of Commerce & Industry, Haji Muhammad Asif Wednesday terming the federal budget 2008-09 as people-friendly, demanded of the government to provide subsidy on food items to facilitate people.

At a press conference here, he said the budget has resolved the problems of the masses.

He lauded the raise in government employees’ salaries, calling it a welcome step.

Increasing of duty on import of luxury vehicles and reduction in duty on CNG busses is a good decision.

He, however, said increase in federal excise duty will have an impact on the businessmen.

11-06-2008

Number of SC judges increased

ISLAMABAD: Federal Finance Minister Syed Naved Qamar Wednesday announced that the number of Supreme Court judges has been increased from 16 to 29.

He announced this while presenting national budget 2008-09 in the national assembly this evening.

Duty on life saving drugs, CNG buses abolished

ISLAMABAD: Federal Finance Minister Syed Naved Qamar Wednesday announced abolishing duty on the import of lifesaving drugs in the country.

Presenting national budget 2008-09 in the national assembly, he also announced abolishing 15 percent duty on the import of CNG buses.

Govt. employees, armed forces get 20 raise in salaries

ISLAMABAD: All the federal government employees including that of armed forces would get 20 percent raise in their basic pay, federal finance minister Syed Naved Qamar announced Wednesday.

Presenting national budget 2008-09 in the national assembly this evening, he also announced that all the civilian and military pensioners would too receive 20 percent raise in the pension.

Naved Qamar said the minimum pension of Rs.300/- has also been raised to Rs.2000/-. Moreover, the employees from grade 01 to 19 would get 100 percent increase in the conveyance allowance while the medical allowance has been raised from Rs.425/- to Rs.500/-.

Minister said, as announced earlier by the Prime Minister, the minimum wages have been raised from Rs.4600/- to Rs.600/-.

Rs 2300 bln budget for 2008-09 announced

ISLAMABAD: Finance Minister Naveed Qamar unveiled the federal budget for year 2008-09 with a total outlay of 2300 billion rupees in the parliament, which is 29.7 percent higher than the budget of the outgoing financial year.

According to the budget document, the expenditure of 2.01 trillion has been estimated. The government targeted to generate net tax revenues of 1.25 trillion rupees through Federal Board of Revenue, showing an increase of 23.1 percent over this fiscal year.

Total resources available for the expenditure will be 1.84 trillion rupees against 1394 billion available in the outgoing financial year. The budget deficit likely to remain at 4.7 percent of the GDP or 582 billion rupees.

The federal government has allocated 549 billion rupees for the Public sector development programme.

The federal government will do 149 billion of bank borrowing coupled with the non-tax revenue receipts of 427.8 billion rupees, during the year. The government will receive net capital receipts of 221.3 billion rupees as well.

A total of 929.5 billion rupees will be spent on the general Public service. In the budget 296.1 billion rupees have been provided for defence needs showing an increase of 7.6 percent. Another 201.2 billion rupees have been made available for economic affairs. For public order and safety affairs 26.8 billion have been provided.

For education 24.6 billion rupees have been allocated. 5.5 billion rupees have been allocated for education sector in the country.

The country will spend 4.8 billion rupees on social protection and 1.4 billion rupees on housing and community projects. Allocation of funds A meager 0 .2 billion rupees have been allocated for the environment protection.

Naveed Qamar begins budget speech

ISLAMABAD: Federal Minister for Finance, Naveed Qamar began the speech to present the Federal Budget 2008-09 here at special budget sessions of National Assembly.

Speaker National Assembly Dr. Fahmida Mirza invited the Finance Minister to present the budget 2008-09.

Earlier, Prime Minister, Yousuf Raza Gilani condemned the recent attack by coalition forces in Afghanistan through aerial strike in Mohmand Agency.

Fateha was offered for as many as eleven security forces personnel including one officer who embraced Shahadat in the attack.

NA Budget session begins

ISLAMABAD: Special session of Federal Budget 2008-09 went underway at National Assembly here today.

Federal Budget 2008-09 size up at Rs2384b

ISLAMABAD: The federal cabinet budget meeting for giving an approval to the budget proposals has started here.

Sources said that the volume of the federal budget 2008-09 stands at Rs2384 billion, which included Rs296 billion for defense, Rs147 billion for administrative expenditures, Rs523 billion for the pay back of loans and its interests and Rs550 billion for the public sector development program. The budget envisages a target of Rs582 billion for deficit financing, while the FBR has been assigned a target of Rs1250 billion for tax recovery and the total revenue target of Rs1803 billion and at the same time, it is hoped that Rs489 billion would be achieved on account of non-tax revenue.

FPCCI, KCCI arrangements for listening of budget

KARACHI: Federation of Pakistan Chambers of Commerce and Industry(FPCCI), and Karachi Chamber of Commerce and Industry (KCCI) have made arrangements for listening of Federal Budget 2008-09 , here at their secretariats.

The FPCCI and KCCI leadership and the members would gather at theHeadquarters of their respective Chambers to give their feedback through print and electronic media , scheduled to be present there.,

President FPCCI , Tanvir Ahmed Shaikh would also hold press conference at the Federation House on the next day of the budget.

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