President Asif Ali Zardari has directed government economic team to evolve poor friendly budget besides providing relief to government employees through increase in their salaries.
Government economic team led by finance minister Hafiz Sheikh gave briefing to the President Asif Ali Zardari on the salient features of the budget for the fiscal year 2011-12 here at Aiwan Sadr.
Sources told President was informed budget had been made people friendly despite financial constraints. However subsidies are being curtailed and government administrative expenses will also be slashed. Non development expenses will be decreased considerably. However increase in security and defence related expenses is must for the sake of national defence and restoration of peace and security in the country, team added. President was also apprised of tax targets set by the government.
President stressed that budget should be poor friendly and it should focus on growth in GDP. Projects be worked out for boosting trade ties with Central Asian states , president said adding subsidy be not withdrawn fully but such a method be devised by virtue of which only the poor segments of society are benefited from subsidy.
He urged that Benazir Income Support Program be consolidated and its funding be raised.
President said that he was fully alive to financial hardships of people particularly government employees due to escalating inflation therefore, increase in their salaries be ensured in the upcoming budget.
Government economic team told President tax net would be broadened in the light of talks held with IMF and 700000 new tax payers will be enrolled to recover tax from them. These tax payers have been identified, team stated. Federal cabinet would decide about increasing salaries of government employees.
President was also given briefing about the projects worked out by planning commission.