KARACHI, June 19: Sindh Irrigation and Power Minister Nadir Akmal Khan Leghari has said the defence allocation of Rs250 billion and development outlay of Rs453 billion in the budget 2006-07 reflect prudent priorities and positive thinking of the government.

Speaking at the post-budget seminar of the Institute of Cost and Management Accountants of Pakistan (ICMAP) on Monday, the minister said the seeds of macro-economic consolidation had started blossoming and required a lot more care and a pragmatic approach to reap the desired results.

Mr Leghari said the fiscal year 2005-06 was the year of economic expansion and accelerated growth, which was a consequence of the continued macro-economic stability and consistent policy framework, with a planned shift in focus of the policymakers to achieve higher growth.

The minister summarized the key features of the budget 2006-07 that has been received with mixed reactions ranging from political bias, including cynicism, to a more proactive and comprehensive analysis.

“Now defence expenditure is Rs250 billion whereas the development budget is Rs415 billion. This is the result of positive thinking, framing fiscal laws, with economic rationale and adoption of international best practices. However, we should not be complacent. We have yet to bridge a wide gap,” he concluded.

Sher Afgan Malik, President of the Institute of Cost and Management Accountants of Pakistan, termed the increase in minimum wage, review of salaries of government employees and rationalising the tax incidence of salaried persons positive steps in right direction.

Abrar Ahmad, regional income tax commissioner, assured the participants that the government would take steps to alleviate sufferings of the people earning Rs0.2 million to Rs0.4 million annually, who were affected by the budget.

Muhammad Arif Nara, honorary secretary of the ICMAP, also spoke high of the budget that addressed many issues.