Federal Finance Minister Dr.

Hafeez Shaikh begins budget speech amid opposition slogans "US slavery unacceptable, Federal Budget unacceptable".

Finance Minister begins budget speech at 06:10 pm. Finance Minister praises President, Prime Minister and Opposition leader Chaudhry Nisar. PML-Ns members agitated in front of Speakers dais. JUI-F, PPP Sherpao lawmakers among protesting members. I (Dr Hafeez Sheikh) pay tribute to President Asif Ali Zardari who handed over his powers to the Parliament. I congratulate Prime Minister Yusuf Raza and Opposition Leader Chaudhry Nisar Ali Khan for upholding the supremacy of the democratic norms in the parliament. The foreign reserves stood at as low as 6 billion dollar when the incumbent government took over in 2008. Strict monetary policy was adopted which helped control the sky-rocketing inflation and boost energy sector. Special relief was provided in terms of funds and other facilities to flood affectees and peasants following the devastating floods in 2010. This is the fourth budget of PPP government: Hafeez Salaries of Government employees are being raised by 15 %. Last year they were given 50 % raise. Remittances reached record 12 billion dollars: Sheikh 35000 civilians and 5000 troops lost their lives due to security situation in the country. Exports rose by 26 %. Remittances shot up to a record level of 12 billion dollars. The foreign exchange reserves are now touching 17.3 billion dollars and rupee value became stable. Inflation much lower due to government policies: finance minister We need to continue fiscal policies: Hafeez Forex reserves were as low as six billion dollars in 2006: minister

Economic stability is governments top priority: minister Inflation will be brought to a single digit level. Inflation rose by 25 % in the current fiscal. Development Budget had to be slashed by Rs100 billion in current fiscal. Rs 20 billion were saved through austerity drive adopted by the government. Rs 15 billion are being allocated for Railways. Rs 2.10 billion for industries and production. Rs 1.5 billion for defence production. Rs 290 billion for National Development Program. PML-N female lawmakers threw bangles towards finance minister. PML-Ns Ahsan Iqbal shows bread to PM Gilani. FBR sets revenue target of Rs 1952 billion. GST reduced from 17 to 16 percent. Taxable income increased from Rs 300,000 to 350, 000. For the first time the proposals include elimination of special excise duties. Tax reforms are being adopted by this government. Only 1.5 million people out of the population of 180 million people pay tax. Federal excise duty on soft drinks is being reduced from 12% to 6%. 31000 rich people have been issued notices to bring then into the tax net. 7000 more such people will be issued notices in this regard. 2.3 million new tax payers will be brought into the tax net. Fifteen out of 40 items are being exempted from Federal Excise Duty. Proposals include complete abolishment of Federal Excise Duty in the next two years. Budget deficit will be Rs 850 billion (4 percent of GDP). Conveyance allowance for government employees of Grade 1 15 is being increased by 25 percent.

The total outlay of budget 2011-12 is Rs 2767 billion. The size is 14.2 per higher than the size of budget estimates of 2010-11. The resource availability during 2011-12 has been estimated at Rs 2463 billion against Rs 2256 billion in the budget estimates of the outgoing fiscal year. Net revenue receipts for 2011-12 have been estimated at Rs 1529 billion indicating an increase of 11 percent over the budget estimates of fiscal year 2010-11. The provincial share in federal revenue receipts is estimated at Rs 1203 billion during 2011-12 which is 16.4 per cent higher than the budget estimates for 2010-11. The capital receipts (net) for 2011-12 have been estimated at Rs 396 billion against the budget estimates of Rs 325 billion in 2010-11 indicating an increase of 11 per cent. The external receipts in 2011-12 are estimated at Rs 414 billion. This shows an increase of 7.1 per cent over the budget estimates for 2010-11. The overall expenditure during 2011-12 has been estimated at Rs 2767 billion of which the current expenditure is Rs 2315 billion and development expenditure at Rs 452 billion. Current expenditure shows increase of less than one per cent over the revised estimates of 2010-11, while development expenditure will increase by 64.4 per cent in 2011-12 over the revised estimates of 2010-11. The share of current expenditure in total budgetary outlay for 2011-12 is 83.7 per cent as compared to 89 per cent in revised estimates for 2010-11. The expenditure on General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) is estimated at Rs 1660 billion which is 71.1 per cent of the current expenditure. The size of Public Sector Development Programme (PSDP) for 2011-12 is Rs 730 billion. While for Other Development Expenditure an amount of Rs 97 billion has been allocated. The PSDP shows an increase of 58 per cent over the revised estimates of 2010-11. The provinces have been allocated an amount of Rs 430 billion for budget estimates 2011-12 in their PSDP as against Rs 373 billion in 2010-11. An amount of Rs 10 billion has been allocated to Earthquake Reconstruction and Rehabilitation Authority (ERA) in the PSDP 2011-12. National Assembly session adjourned till June 6, 2011.