ISLAMABAD, June 18: Finance Minister Shaukat Aziz has said the government will provide all resources to the armed forces needed for the country's defence.
Winding up the debate on the federal budget 2004-05 in the Senate here on Friday, he said that for the country's political and economic sovereignty a strong defence was very critical.
He said 3.4 per cent resources of the GDP had been allocated for defence against the 6.3 per cent earmarked in 1991. The minister refuted the allegations of opposition members that he had presented fudged data in his budget speech and the Economic Survey.
The data had not been prepared while sitting in a room, he said and added that the Federal Bureau of Statistics had done a good job in this regard. However, he said, the government was considering making the bureau more 'independent' to bring more transparency in its work.
He said the country's economy had registered a record growth rate of 6.4 per cent this year, and expressed the hope that it would increase to 8 per cent within next three years. The budget, he said, had been prepared keeping in view this growth in the GDP.
He said that for the first time in the history of Pakistan, a record Rs202 billion had been allocated for the development projects. Of this 60 per cent would go to infrastructure development, he said.
On the opposition's claim that the budget had nothing for the common man, he said there were several incentives in the budget to benefit the masses. He said 15 per cent raise in the salaries of government employees, increase in the pension of retired persons and increase in the income tax limit from Rs80,000 to Rs100,000 would provide a relief to them.
He said the government was planning to launch mega projects in Karachi and Lahore. The minister said the major challenge for the government was the implementation of budgetary proposals.
He asked the opposition parties to cooperate with the government. "We need bipartisan approach and unity to get better results from the improved economic conditions", he added.
Later, Muttahida Senator Ahmed Ali read out 19 recommendations, finalized by the upper house, to be sent to the National Assembly. The Senate has recommended that the limit of taxable income be raised from Rs80,000 to Rs120,000, allowing a minimum of Rs10,000 monthly tax-free income to individuals.
It recommended that the pay and pension committee should consider a 20 per cent raise for BPS-1 to BPS-16 and 12.5 per cent for BPS-17 and above. The senators have suggested that duty on computer parts should be abolished and on the finished products, it should be 5 per cent.
They have also recommended that the committee should look into the proposal of giving a 25 per cent ad hoc dearness allowance to those who retired before 1994 and 15 per cent to the people retired after 1994.
They proposed that in future GST at the rate of 15 per cent should be rationalized at 12 per cent. The senators asked the regime that austere measures should be taken in respect of government advertisements to save valuable funds. They also called for abolishing sales tax or any other tax levied on motorcycles and bicycles.
