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PM for next budget to focus on vulnerable groups
ISLAMABAD: Prime Minister Syed Yusuf Raza Gilani on Wednesday stressed that the next budget should focus on protection of vulnerable groups through control of inflation and social safety net programme.The Prime Minister expressed these views while chairing a meeting where he was briefed by Advisor on Finance, Dr. Abdul Hafeez Sheikh on the preparation of upcoming budget. Deputy Chairman Planning Commission, Dr. Nadeem ul Haq and senior officials of the Ministry of Finance, Planning and Development Division and the FBR were also present.
Gilani appreciated the efforts of finance team and asked them to make a budget focusing economic stability, prudent fiscal policy and generation of economic opportunities for the youth.
Despite global recession, the country’s economy has registered positive indicators as the exports have raised more than 7 percent, remittances more then one billion dollars per month and revenue collection by FBR during the first seven months remained about 26 percent more than the corresponding period of the last financial year.
The meeting focused on four basic areas - overall state of the economy, expenditure management, revenue expansion and the Public Sector Development Programme (PSDP).
It was highlighted that the projected growth rate in GDP is 3.6 percent. This will be attained despite the floods this year in the province of Sindh, increased transfers of revenue to provinces and challenges arising out of the global situation.
On inflation, the Prime Minister was apprised that due to the right mix of policies inflation will be lower than the budgetary projection of 12 percent and the three prices index i.e. CPI, WPI and SPI are approaching single digit.
Due to austerity measures and aggressive expenditure management, expenditures in the first seven months of the current fiscal year have been 53 percent as compared to the target of 58 percent which is 5 percent low.
Overall position of the exports sectors shows that exports in the first seven months have been 14 billion dollars thus registering an increase of 7 percent as compared to the corresponding period of the previous financial year.
The Prime Minister was briefed that remittances by the overseas Pakistanis remained at 7.4 billion dollars in the first seven months registering 21 percent increase.
The briefing on revenue side highlighted the strong revenue collection so far amounting to Rs. 975 billion with an increase of 26 percent as compared to the corresponding period of the last fiscal year. The target of Rs. 1952 billion for the current financial year is likely to be met due to the continuous expansion of the tax net and administrative efforts.
The Prime Minister was apprised that PSDP of Rs. 300 billion will be met in its entirety and 100 percent utilization will be achieved. In the first seven months, Rs.221 billion have already been released to ensure continuity of development programme on the projects. The remaining amount will be released as per the law.
The PSDP cover important projects such as Diamer-Basha Dam, Mangla Dam Raising Project, Neelum-Jhelum Project, Lowari Tunnel Project, several National Highways and vertical programmes in the social sector under the federal government which remained with the federation after the devolution process. (APP)
Courtesy www.geo.tv