Budget 2012-13: Cabinet approves budget proposals

ISLAMABAD: The Federal Cabinet has granted approval to the proposals for the Federal Budget 2012-13 with a total outlay of Rs2.96 trillion, Geo News reported on Friday.

Chairing the meeting, Prime Minister Syed Yusuf Raza Gilani signed the budget document after it was approved by the Cabinet.

According to sources, a proposal to raise the salaries of government employees by 20 percent was also approved besides increasing the tax exemption ceiling from Rs350,000 to Rs400,000.

Another proposal recommends a hike in prices of cigarettes.

Earlier, Finance Minister Dr. Hafeez Sheikh briefed the participants of the meeting about budget proposals to be presented in the parliament later today.