ISLAMABAD Contrary to the recommendations of Pay and Pension Commission to comprehensively revive salary structure, the Government would again provide ad hoc relief to civil servants that is an eyewash in the face of growing inflation. This came out in the briefing to the National Assembly Standing Committee on Finance about the broad outline of the next budget that would be presented in the National Assembly on June 5. Total outlay of the next years expenditures would amount to Rs 2,923 billion against the overall revenues of Rs 2,160 billion inclusive of the Federal Board of Revenues annual collection target of Rs 1,711 billion. The deficit for the outgoing financial year would amount to Rs 763 billion or 5.1 percent of the GDP and that too on the basis of revenues for this year to be at Rs 1,378 billion. On the other hand, the FBR official believed that the overall collection would not cross Rs 1,300 billion to expand the fiscal deficit for the current year up to 5.3 percent of the GDP. With 4.5 percent GDP growth projection, the Government would be giving out merely Rs 40 billion or 15 to 20 percent increase in the salaries of the public sector employees as against the proposals of at least 25 to 35 percent increase that amounts to Rs 65 billion in aggregate. It is not yet clear whether or not the provinces would come up with the meagre ad hoc relief to the level of the Federal Government, given the precarious financial state of especially the largest province. The Committee was informed that the Government would allocate Rs 5 billion for the health sector. Defence budget is likely to be around Rs 448 billion. Apart from the VAT, the Government is up to take major decisions on the taxation side including massive increase in five percent regulatory duty and up to 35 percent increase on import of refined tobacco for luxurious use like cigars and pipes. Similarly the rate of withholding tax is also to go up by at least one percent from existing three percent. The corporate tax rate currently at 35 percent is also likely to go up again as against the previous governments drive to gradually scale it down. According to the officials of the FBR, VAT would not be applicable on the taxpayers that are already in the excise duty mode. Stock Exchanges enjoying exemption from the capital gain tax on shares since 1978 would face levy next year. The stock exchanges representatives have proposed the Government to withdraw capital value tax and withholding tax if it wants to levy the capital gain tax. However, the FBR officials have argued that capital gain tax was an entirely different tax and it had to be imposed no matter the other taxes were withdrawn or not. The Committee was also informed that Rs 400 billion would go to the eight state-owned entities as capital injection against their losses. Prime Ministers Advisor on Finance Abdul Hafeez Sheikh would head a meeting of the Economic Advisory Board on Saturday (today) to sort out the conflicting issues like the taxes on stock exchanges and others matters in dispute.