10 percent cut in Federal Cabinet salaries

[Waseem]

ISLAMABAD: Finance Advisor Dr. Abdul Hafeez Shaikh presented Federal Budget for 2010-11 with a total outlay of Rs3.259 trillion before the parliament on Saturday.

In his budget speech at special budget session of the National Assembly, Dr. Hafeez Shaikh announced ad hoc allowance at 50 percent of basic salaries for government employees; raise in GST from 16 to 17 percent; 10 percent cut in Federal Cabinet salaries; capital gains tax of 10 percent on stocks held for six months or less, 7.5 percent on stocks held between 6 months to a year; reduction in customs duty on 29 items; raise in pension by 15 percent for employees retired before 2001 and 20 percent for those retired after 2001.

Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP.

Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees.

The general sales tax will be reformed to a uniform rate of 15 percent. GST will not be imposed on health, education, food items and on those merchants whose turnover is less 7.5million rupees.

This reform will be effective from October 1, 2010.

 

[Waseem]

Why cut only for 70 or 100 plus people why not for all MNAs and MPAs because they all are rich people they can live with out this salary. Secondly what about the royal expenses on Presidency and Prime Minister house?

 

[karachi]

Why cut only for 70 or 100 plus people why not for all MNAs and MPAs because they all are rich people they can live with out this salary. Secondly what about the royal expenses on Presidency and Prime Minister house?

it should had been done to all province & national assembly

 

[samy99]

90% of the MNA's and senators are filthy rich,playing in billions of rupees -why not they refuse to draw the salaries and daily allowances from the pak treasury but instead corruption is their separate way of income.Do these people ever think about the country.Zardari and PM are drawing salaries,do they really need the money,can they say tommorrow along with other rich mna's and senators that we will not draw the salary for the sake of the country because the nation is going through very hard time.Can these people give sacrifice-"THEY REALLY DONT NEED MONEY" OTHERWISE ALL THESE PEOPLE BRING THEIR MONEY INTO PAKISTAN FROM FOREIGN BANKS,WILL THEY?

 

[shaheedchoudry]

Make me a minister and instead of getting salary, I will pay salary to Govt.

 

[samy99]

If the direct taxes are imposed appropriately on all these elite class ,another 700 to 800 billion rupees would have been collected.The revenue collection should be at least 30% of GDP to maintain the nation's economy and control the inflation.property tax should be revised according to the value of the property, there is no deptt in the country to evaluate the property so tax could be levied accordgly.sales and excise duty can get quite a fair amount if watched closely and honestly.There should be accountability in FBR,very important.Corruption have to be checked at all levels but who will do it when the robers are sitting on the treasury. Non-productive,PM and president house expenses have to be slashed drastically,look indian govt's and their ministers life style-compare with ours and such a shamefull difference.when the pak govt will learn,perhaps never?

 

[samy99]

shaheed,i wish the people in govt will think like you,i admire your patriotism.

 

[Toyota]

Make me a minister and instead of getting salary, I will pay salary to Govt.

First you need to show your corruption. lolz.

 

[rajakhanmd]

10 percent cut in Federal Cabinet salaries.


Anasar Abbasi sb does not agree.

Cabinet actually gets 40 per cent more funds
By Ansar Abbasi

ISLAMABAD: The 10 per cent cut in the salaries of the federal cabinet members is nothing but a ruse as the budget documents show that salary allocations have been increased from the current Rs143 million per year to Rs201 million for 2010-11, or an increase of more than 40 per cent.

The ministers, ministers of state, advisers and special assistants would get a reasonable raise in their basic salaries and the announced cut would only come after the un-announced automatic increase.

According to the budget books, like the ministers and ministers of state, the salaries of special assistants and advisers to the prime minister have also been increased from a total of Rs8.2m and Rs9.9m to Rs11.5m and Rs11.7m, respectively.

In case of allocations for the salaries of members of the National Assembly, it has been increased from Rs645 million to Rs669 million for the next fiscal year. The pay of the speaker and deputy speaker National Assembly and their staff has been increased from Rs11.6 million to 16.1 million for the year 2010-11.

The pay of the leader of the opposition has been increased from Rs7.7m to 8.5m. The salaries of the chairmen of the standing committees of the National Assembly have been increased from Rs108m to Rs174 million.

In case of senators, allocation for their salaries has been raised from Rs172m to Rs179m. The salaries of the chairman and deputy chairmen Senate and their staff has been increased from Rs26.7m to Rs28.5m.

The pays of the leaders of the house and leader of the opposition in the Upper House have been increased from Rs18.9m to Rs20m.For chairmen of standing committees in the Senate the budget allocates Rs199m from the previous Rs177m.

Apparently following the British model where the newly elected conservative government recently announced a volunteer cut in their salaries of five percent, the Gilani cabinet’s announced 10 percent is more like playing to the galleries.

Despite Dr Hafeez Shaikh’s impressive speech, the pink budget books containing details of demands and grants and appropriations for the next fiscal year, reveal more than what Shaikh said in his speech.

It is for the government to explain if the salaries of the president, prime minister, cabinet members and members of the National Assembly and Senate would remain frozen and the increase proposed in the budget books would be withdrawn or this increase is part of the overall exempted increase in the allocation for the salaries of the government servants.

For government servants, Dr Hafeez Shaikh announced ad hoc relief of 50 pc of their basic salary beside an increase in their medical allowance. A few years back during Musharraf’s regime the increase in the salaries of the MPs and the ministers was linked to the increase in the salaries of government servants, through legislation. Prior to this legislation, the governments used to give increase in the salaries of the MNAs, senators, ministers, advisers, special assistants etc separately but it used to cause embarrassment for the regime.

After the said legislation, the MPs and cabinet members started getting increase in the salary equivalent to that of government servants every year but without any formal announcement of such raises in the budget speeches.

http://thenews.jang.com.pk/top_story_detail.asp?Id=29308