No proposal yet for ad-hoc relief to govt employees

No proposal to provide ad-hoc relief to government employees in the 2011-2012 budget is under consideration but the final decision in this regard would be taken in the federal cabinet’s special pre-budget meeting today (Friday), Pakistan Today learnt on Thursday. In the economic team’s special pre-budget meeting, Prime Minister Yousaf Raza Gilani was informed that there was no proposal to increase the salaries of government employees as the government was facing an economic crisis. However, according to a source, the prime minister said he would take the final decision during the cabinet’s meeting after seeking views of his ministers. The source said the prime minister was informed about the talks with the IMF and the conditions put forth by the organisation while Finance Minister Hafeez Shaikh also briefed Gilani on the government’s tax and economic reforms and their impact on revenue collection. Gilani directed his economic managers that the forthcoming budget should be people-friendly and said appropriate measures should be incorporated in the budget to ensure economic growth leading to reduction in inflation, increase in investment and creation of jobs. The prime minister stressed upon adoption of austerity measures with focus on development efforts. Earlier, the finance minister briefed the meeting on the salient features of the 2011-12 budget. After giving a review of the last year’s budget, the finance secretary explained the economic strategy adopted for the upcoming budget. The FBR chairman deliberated upon the available options to expand the tax base and achieve revenue targets.