MAIN FEATURES OF BUDGET 2006-07

June 12 - 18, 2006

* Rs 1315 billion budget for the fiscal year 2006-07. This size is 19.7 % higher than the size of budget estimates 2005-06

* The allocation for defence has been increased to Rs 250 billion against revised which is Rs 27 billion more than the last fiscal year. Target of Rs 241 billion. Of this, Rs 1.949 billion would be for defense administration, against Rs 486 million and Rs 248.2 billion for defense services, against Rs 240 billion.

* The revenue target for CBR has been fixed at Rs 835 billion which is Rs 125 billion or 17.6% more than last financial year. 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 allocation of Rs 435 billion under the Public Sector Development Programme 2006-07 shows an increase of 59.9% when compared with Rs 272 billion of PSDP in 2005-06. The government has allocated Rs. 6560.258 million for education in PSDP for the Financial Year 2006-2007. Government has allocated a total of Rs. 530 million for local government and rural development in the PSDP for the financial year 2006-07. A total of Rs 10.88 billion have been earmarked for the development of Pakistan Railways under PSDP for the next financial year. An amount of Rs. 4319.250 million has been allocated for 24 on-going schemes and Rs. 49.760 millions for three new schemes of Population Welfare Division PSDP 2006-07. The government under the PSDP 2006-07 has allocated Rs 1303 million for 50 projects in the Defence Division sector. Out of the total allocations Rs 637.17 million are for 34 new projects while Rs 666.62 million for 16 on-going projects. The government has allocated Rs.929.917 million in the PSDP 2006-07 for new projects and completion of ongoing schemes in the petroleum and natural resources sector

* Privatization proceeds' target for the next fiscal year has been fixed at Rs 75 billion

* The government will get Rs 140 billion from banks and Rs 239 from external resources to plug the gap in revenue and income

* The government has estimated Rs 704 billion from revenue receipts, and Rs 16.3 billion from capital receipts. The provinces will generate Rs 85.6 billion income from their indigenous resources.

* Property and enterprise would contribute Rs 115 billion in tax collection. The current expenditure has been estimated at Rs 878 billion. Its major share, of Rs 504 billion, will go for debt servicing, which makes 57.3 percent of current expenditure

* The government has granted 15 percent dearness allowance for government employees, 20 percent increase for those pensioners who retired in or before 1977, and 15 percent for those who retired after 1977

* Rs 1 billion has been allocated for community development and Rs 4.73 billion for health related program.

* Excise duty at 15 percent has been imposed on international air tickets. Haj fare/tickets have been exempted from duty. The duty on retail sale of cigarettes has been increased.

* Rs 2.5 billion subsidies will be give on pulses, Rs 7 billion for sugar. Utility Stores Corporation will expand its network outreach to maximum number of people. District governments will appoint magistrates to check price hike

* The government has allocated a huge amount of Rs. 10 billion in the budget for the construction of Bhasha-Diamer Dam and three other major dams in the country.

* Resources are projected at Rs 1,100 billion in the next year budget, which stood at Rs 980 billion in the existing financial year of 2005-06.

* The retail price of cigarettes has been increased by 7%. Excise duty on the insurance services sector has been raised from 3% to 5%.

* Resources are projected at Rs 1,100 billion in the next year budget, which stood at Rs 980 billion in the existing financial year of 2005-06.

* The budget for the financial year 2006-07 will be deficit budget and government will obtain loans from national and foreign banks to meet this deficit amounting to Rs215 billion.