ISLAMABAD, May 31: Finance Minister Shaukat Aziz on Monday said the announcement of the federal budget 2004-05 was delayed till June 12 with the hope to forge consensus with provinces on the Sixth National Finance Commission (NFC) Award.

He told reporters after presiding over a pre-budget seminar that the government hoped to reach to a consensus on the Sixth NFC Award before budget. He, however, declined when asked if NFC meeting would be convened on the sidelines of the National Economic Council (NEC) meeting on Tuesday.

"No date or time has been set for the NFC meeting so far, but we hope to reach to a consensus on Sixth NFC Award before Federal Budget", he said. Earlier, speaking at the seminar the minister said that during the next fiscal year the government would increase the poverty alleviation related expenditures to Rs278 billion from the current year's Rs238 billion.

The focus of the federal budget 2004-05 would be to give an impetus to growth, attract investment and create opportunity, he said. The minister said that investment was must in all the sectors be it agriculture, large-scale manufacturing, and services, and government's role was to create opportunities for investment through policies that ensure opportunity creation, that would lead to more job opportunities.

Mr Aziz says the government estimates that per capita income will be $650 per annum and the higher per capita income has been there due to macroeconomic stability. Replying to various queries and objections raised by speakers at the seminar, the minister said that the focus of the government is on agriculture and that is why the government's priority in PSDP is water sector.

Water related projects are number one item in PSDP with massive allocations for new projects and repairing projects, that includes lining of canals, water courses and repairing of barrages.

The minister said that in order to maintain growth of above six per cent, as it is hoped this year, we need to invest more in infrastructure to avoid choking of growth. Infrastructure development, that remains priority in forthcoming budget, would help sustain growth, he said.

The minister said the government conducted a sample survey on poverty as a pre-budget exercise and observed that poverty levels that have been flat last year have started sliding down, and the poverty level has started coming down.

This does not mean that poverty has been eliminated but we believe that poverty still remains the biggest challenge of the government. The other speakers at the seminar included Dr A. R. Kemal, director general Pakistan Institute of Development Economics (PIDE), Arif Habib, chairman Karachi Stock Exchange, Senator Professor Khurshid Ahmed and Dr Akram Sheikh, deputy chairman Planning Commission.