The proposed volume of the Public Sector Development Programme (PSDP) for the fiscal year (FY) 2013-14 will be Rs 450 billion, which is Rs 90 billion more than the previous year, according to Rana Asad Amin, adviser to the Ministry of Finance, Revenue and Economic Affairs.
Talking to Online on Friday in the Parliament House, Amin said that the budget strategic paper of new fiscal budget would be presented before the federal cabinet on March 6 and a three percent increase in the basic salaries of government employees had been proposed.
He said that government did not have sufficient funds for any major increase in the salaries of the federal government’s employees, adding that if the federal cabinet wishes, it could increase the rate.
He further said that during FY2013-14, the budget deficit was expected to reach between 5.5 to 6 percent against a set target of 4.7 percent.
He said that during the last four months of current fiscal year, FY2012-13, Pakistan would pay back a loan of $1 billion to the International Monetary Fund (IMF), while $1.9 billion have been paid during the last eight months.
The government has also received $1.18 billion under the Coalition Support Fund (CSF) from the US government, Asad added.
Amin further said that any review in the tax collection of the Federal Board of Revenue (FBR) would result into an increase in the budget deficit by 0.6 percent, whereas, failure in auction of 3G technology budget deficit would be 0.3 percent.
Amin said that government has given Rs 235 billion power subsidy despite Rs 185 billion that has also increased the budget deficit by 0.2 percent. He expressed the hope that the new elected government would present the annual budget for FY2013-14.
