The budget for the upcoming financial year has been approved by federal cabinet, and it will shortly be presented to the parliament.
According to the estimates for the Budget 2011-12 obtained by DawnNews, the budget for the coming year is going to be 14.2 per cent greater than last year.
The total budget amounts to Rs. 3.7 trillion, out of which 933 billion is expected to go to provinces while 2.7 trillion would be for federal allocation.
The budget deficit has been estimated at four per cent of the GDP, or Rs. 850 billion.
For the coming year 2011-12, Rs. 495 billion is likely to be allotted for defence whereas Rs. 790 billion is expected to be set aside for debt repayment.
Out of the total budget, Rs. 730 billion was being set aside for development, with Rs. 300 billion for federal development and Rs. 430 billion for provincial development projects.
Federal revenue is estimated to be Rs. 1.952 trillion, while non-tax income estimates are put at Rs. 657 billion.
Recommendations have been given for a 15 per cent increase in government salaries, as well as for the implementation of 17 per cent sales tax on Army CSD shops and local garments manufacturing.
There are also recommendations for the elimination of tax exemptions and introduction of new taxes worth Rs. 90 billion.
The 2011-12 budget is expected to allocate a grant of Rs. 23 billion to Gilgit-Baltistan. While Pakistan Railways is likely to be granted Rs. 25 billion.
Estimates for income from petroleum products stand at Rs. 115 billion while there has also been a recommendation of eight per cent excise duty to be applied on sugar.