June 11, 2008	Wednesday	Jamadi-us-Sani 06, 1429

ISLAMABAD, June 10: The PPP-led coalition government will announce on Wednesday its first budget with an expected outlay of Rs2.2-trillion, including revenues of Rs1.2 trillion.

Minister for Finance Syed Naveed Qamar will present the budget at 6.30pm in the National Assembly.

Informed sources said a number of new taxes were likely for narrowing down the income-expenditure gap and reducing the fiscal deficit which was seven per cent in the outgoing financial year.

The government is believed to have sought 39 per cent budgetary support from Saudi Arabia and international donors, particularly the World Bank.

The rate of General Sales Tax (GST) is likely to be enhanced from 15 per cent to 16 per cent and some of the existing taxes are expected to be rationalised.

The government has already succumbed to pressures of brokers and decided against imposing capital gain tax on stock markets.

However, the sources said that some increase in the capital value tax on real estate was likely.

Import duty on luxury items may be increased to discourage foreign goods.

A relief scheme for poorest sections of society is likely to be included in the budget and the government plans to spend Rs100 billion on the scheme in the next financial year.

Adviser to the law minister on parliamentary affairs Izhar Amrohvi said that the debate on the budget would continue till June 20 and after that members would be allowed to move cut motions.

The government plans to get the budget approved on June 25.