The Utility Stores Corporation (USC) network will be expanded to union councils level for outreaching maximum number of needy people. Essential items would be provided to low-income groups through expanded USC network, and Rs 111 billion have been allocated for subsidies to protect the poor segment of the society.
Government employees will get 15 percent increase in basic salaries with special incentive for BPS 4 of one grade promotion.
Minimum wages limit has been increased from Rs 4000 to Rs 4,600 per month, and EOBI Old Age benefit will be increased from Rs 1300 to Rs 1500 per month. Pensioners will get 15 to 20 percent increase. Those who retired prior to 1975 would get 5 percent more increase in pensions.
The provinces will get 46 percent of resources from divisible pool, against 45.5 percent of 2006-07, and their share will increase, as per agreed National Finance Commission (NFC) award, to 50 percent by 2011. GDP growth rate has been fixed at 7.2 percent for next fiscal year.
The Public Sector Development Programme (PSDP) will be Rs 520 billion and it will cater the needs of a number of key areas. Several steps would be taken to plug trade and current account deficit.
Mega dams and other water-related projects will be completed on top priority basis to overcome power crisis. Neelam-Jehlum will cost Rs 84.5 billion. PSDP will cover 669 new and 1450 on-going development projects, and Rs 35 billion has been earmarked for earthquake areas rehabilitation.
Design for Bhasha and Diamir dams will be completed in 2008. The Central Board of Revenue''s (CBR) has been given target of Rs 1.025 trillion, against Rs 835 billion of the outgoing fiscal year. It would include Rs 622 billion direct and Rs 408 billion indirect taxes.
Tariff regime for cars will remain the same, except conversion of capital value tax (CVT) into customs duty and reduction in period of import from 5 years to 3 years.
One percent special surcharge has been imposed on import of all items, except petroleum products, palm oil and agriculture inputs and machinery. PSF imports have been included in DTRE scheme to give relief to the textile sector.
Real Estate Investment Trust (REIT) has been formed with exemption from tax up to 2010. Assets of stocks exchanges, to be transferred to demutualised exchanges, will be given special tax treatment. In order to speed up private investment in Private Equity Fund (PEF) exempted from tax till 2014 has been proposed.
Four percent of GDP will be spent on education. Defence budget has been increased by 9.12 percent by taking its allocations to Rs 275 billion against Rs 252 billion of 2006-07.
Educated youth will get stipend. Special skill programme will be launched under Navtec to impart skill to the youth. Baitul Maal Fund will cover 0.7 million households, according to new budget. Electricity rates for tube-well have been cut by 25 percent. Subsidy on urea has been increased to Rs 470 per bag. The growers will get fertilisers, new seeds and other agricultural inputs at subsidised rates.
Incentives for livestock in taxes. Khushal Pakistan Programme (KPP) will cover more areas for development. Poverty issue will be addressed through more jobs.