ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Shaikh Saturday said that the main focus of the Federal Budget 2012-13 is to ensure continuity of microeconomic stability in the country in tandem with provision of relief to the poor and vulnerable segments of society.
Addressing the post-budget press conference, the Finance Minister said the government succeeded in maintaining macroeconomic stability for last couple of years and measures have been taken in this budget too to ensure its continuity.
Shaikh said the pace of inflation has been on declining trend for the last couple of years and it is projected to come down to single digit this year, hence leading towards microeconomic stability and helping mitigate the sufferings of the people.
The Federal Minister said that the government would ensures tax collection from all those who are liable to tax, adding that due to the efforts of the government the tax collection increased by Rs400 billion during the current fiscal year, showing 25 per cent increased.
He said another measures that the government has taken towards achieving the sustainibility of microeconomic stability is that it enhanced allocations through Public Sector Development Programme.
He said the Federal PSDP has been increased from Rs300 billion to Rs360 billion, an increase of 20 per cent while all the PSDP allocations for the year 2011-12 were utilized that helped completion of about 200 projects.
He said the government was providing targeted subsidy to the poor and low income people of the country through various programmes including Benzair Income Support Programme (BISP) through which Rs50 billion were provided during 2011-12 to 3.5 million families at the rate of Rs1000 per family.
In addition, the government provided subsidy of Rs50 on import of 1.2 million ton fertilizer to ensure food security in the country and as a result the country exported wheat and sugar and earned considerable foreign exchange.
The Federal Minister said the country was passing through difficult times and was also affected by the oil prices in the international market.
Regarding the power sector, the Finance Minister said the energy crisis was the outcome of negligence of last 12-14 years.
He said that government provided Rs250 billion subsidy during 2011-12 to help reduce prices of electricity for the common people and would be providing Rs183 billion during the upcoming financial year.
He said owing to increase in the oil prices in international market, the electricity generation cost was increasing in the country and the government was providing subsidy to share this burden and provide relief to people.
He said the government has taken measures and increased allocation in the current budget for the energy sector development, adding that the power sector was provided highest allocations in the PSDP.
He said the government has already added about 3500 megawatt electricity in the national grid system while work on several other projects is continuing to increase electricity generation.
