The Federal government has decided to increase pay as well as allowances and other expenses of cabinet members.
According to budget documents, cabinet division has proposed to allocate Rs88.7 million pay of federal ministers as well as ministers of state in next fiscal year which was Rs88 million in outgoing year.
Similarly cabinet division has also proposed to enhance allowances from Rs63.5 million to Rs64.1 million, employees related expenses from Rs151.5 million to Rs152.8 million, officers pay Rs88 million to Rs88.7 million, other allowances (excluding TA) Rs7.6 million to Rs8.2 million, operating expenses Rs6.63 million to Rs6.70 million, travel and transportation Rs66.3 million to Rs67.08 million and an increase of Rs1,000 each in repair and maintenance as well as transport allowance has been proposed.
Overall, an increase of Rs2 million (Rs218 million to Rs220 million) has been proposed in federal ministers or MoS expenses.
In addition documents state that cabinet division has also proposed an increase of Rs2 million in PM advisors expenses which includes Rs1000,000 in communications, Rs150,000 in travel and transportation, Rs400,000 general, Rs350,000 physical assets, Rs100,000 computer equipment, Rs150,000 purchase of plant and machinery, Rs100,000 purchase of furniture and fixture, Rs400,000 repair and maintenance, Rs200,000 transport, Rs50,000 each in furniture and fixture.
Meanwhile, an increase of Rs1 million (Rs29 million to Rs30 million) has also been proposed in the expenses of Special Assistance to PM. Presently, cabinet includes 34 federal ministers, four advisors and eight SAPMs.
The salaried class has been targeted, as always, especially with withdrawal of tax credit on mutual fund investments and removal of tax benefit on house finance. Unfortunately, while on the surface, increased tax rates and capital gain tax on property looks good, but in a country where the property is purchased and sold on the basis of ‘files’ rather than actual transfer of ownership, i doubt this will result in increase in tax collection.