DEFENCE GETS ABOUT RS300 BILLION IN PAK BUDGET FOR 2008-9

Islamabad, Jun 12 (PTI) - In the first budget after return
to democracy, the Pakistan government Wednesday provided for a
whopping Rs 30,000 crore in a deficit budet for 2008-09.

The overall expenditure showed a near 30 percent growth
in the size at Rs 2010 billion, as per the budget presented by
Finance Minister Naveed Qamar in Parliament.

"We are presenting the budget in difficult times," Qamar
said, adding, "the new government has inherited a muted
economy."

"Pakistan has received huge amounts as aid post 9/11 for
its role in war against terror but most of the fund has
propelled consumerism and not enough was invested on
infrastructure," he said.

Apart from Rs 296 billion outlay for defence, the
government will also be providing over 295 billion rupees
worth of subsidies during the next year to sectors such as
power, agricultural inputs and food items.

Pegging the fiscal deficit at 7 percent, the budget
estimates net revenue receipts at 1111 billion rupees, an
increase of 23.1 percent over the outgoing year. The external
receipts are projected at 300 billion.

The overall expenditure during the next financial year
has been estimated at 2010 billion rupees of which the current
expenditure will be 1493 billion rupees and public sector
development programmes 550 billion rupees.