ISLAMABAD: DawnNews has received a copy of budget proposals for 2011-12. According to the proposals, fiscal deficit will be contained to 4.5% of GDP, and thereafter to be further reduced by 0.5% annually.
Tax to GDP ratio estimated at 9.1% during the year, will be raised to 10.3% over the next 3 yrs. Elimination of subsidies worth-229 billion rupees.
Gradual elimination of tariff differential subsidy on electricity-Rs.186 billion. Elimination of other untargeted subsidies estimated at Rs.43 billion. Zero net financing from SBP each year. Implementation of new growth strategy.
Continuation of ban on new recruitment, due to surplus staff from devolution process. Rationalisation of fuel entitlement, traveling allowance and expenditure.
Establishment of an independent commission to scrutinise all development and current expenditure. Additional resources to the tune of Rs.360 bn will be transferred to all provinces.
After various measures, inflation is projected to be lower than 12% in 2011-12, and economic growth at 4.2% of GDP in the Year 2012-13 inflation will come down to 9.5%
Tax collection target to be set at Rs.1.95 trillion. Exports to touch $25.9 bn. Imports after new measures will hit $39.1bn.
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