[BETA.DAWN] Finance Minister Ishaq Dar presented Pakistain's federal budget for the year 2013-14 in the National Assembly on Wednesday.According to the government's proposed budget unveiled in parliament, the Pakistain Mohammedan League- Nawaz (PML-N) government expects Pakistain's 2013-14 fiscal deficit to narrow to 6.3 per cent of gross domestic product.
The proposed budget of Rs 3.5 trillion is expected to be funded partially by tax revenues of around 2.75 trillion rupees, Dar said.
To read the complete text of the finance minister's budget speech, click here.
The finance minister said that the government will spend the bulk of the development budget on the energy sector and that a total of Rs 225 billion have been allocated for the purpose.
Dar said that Rs 59 billion have been allocated for the construction of new dams.
The budget, aims at restricting power sector losses, is expected to do so by bringing down subsidies and gradually increasing electricity tariff for all consumers.
The finance minister announced that the government was looking to take austerity measures to bring the economy back on track.
Dar said that the government was hoping to save Rs 40 billion from the government's kitty by pursuing its planned austerity drive.
He said that the government had decided to freeze and scrap all secret funds for all ministries, except fot national security agencies.
"Yesterday, the Ministry of Finance has issued necessary instructions for immediate ceasing of such of such expenditures and return of unspent balances. Simultaneously, the allocations for the next year have been cancelled," he said.
Dar added that the Prime Minister's discretionary fund had also been scrapped, and that the expenses of the Prime Minister's House will be brought down by over 40 per cent.
He also announced that 3G telecom licenses will be auctioned and foreign exchange reserves will be raised to $20 billion in three years.