The government has presented what it called a pro-poor, growth-oriented and investment-friendly federal budget of Rs 1.5 trillion for the fiscal year 2006-07. The budget sets a revenue target of Rs840 billion, defense spending of Rs250.2 billion and fiscal deficit of Rs373.5 billion, amounting to 25 per cent of the total budget outlay. Perceived to have been prepared with next year's parliamentary elections in mind, the budget envisages development spending to increase by 52.57 per cent to Rs415 billion and offers a 15 per cent dearness allowance to all government employees and 20 and 15 per cent increase to pensioners who retired before 1977 and afterwards, respectively, amounting to a relief of Rs10 billion. The budget included tax increases on bank services and stock markets and a new tax on real estate to meet the estimated Rs 373.5 billion deficit, which is 4.2 percent of Gross Domestic Product (GDP). Minister of State for Finance Omer Ayub Khan presented the federal budget in the National Assembly or Lower House of Parliament. --MORE 06/06/2006 11:06 ت م
