20% Salaries & Pensions Increased
Let us put a brief highlight on one of the most significant feature of budget The Salaries and Pensions. According to Pakistan Federal Budget 2012 – 2013 government employees would get 20% increase in salaries from 1st June 2012. The pensioners would get 10% increase in pensions.
The increase in pay and pensions would cost the government additional Rs. 25.5 billion. The total increase in salaries will be from 20% to 29% while the pay scale will increase at 15%. The government servant scales have been revised in the light of pay and pension committee. In this budget the income tax for salaried persons have been reduced where the person who is earning Rs.4 Lakh in a year is not supposed to pay the tax.
Moreover, the abolition of taxes and refunding of duty draw backs is a good step. It will not only remove the corruption but will make our exports more competitive in the whole world. On the whole this sudden increase in pensions and salaries of the employees will give them enough relief, though not satisfactory.
But as the previous budget was accorded as the budget of rich but this time it will a budget for rich as well as poor. This will have a huge effect on increasing the level of investment as well as growth of investment.