How Budget 2008 has affected Labor Class?

Budget 2008-2009[1]

Finance Minister Naveed Qamar unveiled the federal budget for year 2008-09 with a total outlay of 2300 billion rupees in the parliament, which is 29.7 percent higher than the budget o the outgoing financial year.

According to the budget document, the expenditure of 2.01 trillion has been estimated. The government targeted to generate net tax revenues of 1.25 trillion rupees through Federal Board of Revenue, showing an increase of 23.1 percent over this fiscal year.

“Budget is good – but only for the Rich[2]”

How budget has affected the labors?

Minimum wage rate
The minimum wage has been increased from Rs. 4600 to Rs. 6000

Increase in basic pay
The budget announced envisages an increase of 20 percent in the basic pay and pension of all the federal government and defense services employees.

Minimum pension
The minimum pension of government and defense services employees have been increased to Rs. 2000 from Rs. 300
A pay and pension commission will also be set up to review the pay and pension of government employees and make recommendations for possible improvements.


Increase in conveyance allowance
There is also an increase in the conveyance allowance of government employees serving in basic pay scale from 1 to 19

Increase in medical allowance
There is also an increase of Rs 75 in the medical allowance of the employees in the basic pay scale from 1 to 16. It has risen from Rs425 to Rs500 per month

The minister has proposed regulations of services of all contractual employees in BPS -1 to15 in various government departments

National internship programme
The government has decided to continue with the national internship program that was launched by the previous government and has allocated the budget of Rs 1.6 billion for this programme

Conclusion
The main increase is in the minimum wage rate that is increased to Rs. 6000 and allowances are added separately. In short, EOBI and Social security of the worker has increased. However, we can say that the inflation is at its peak and this increase in the wage rate and the other allowance may not be sufficient enough to meet the daily needs of the workers.
[1] The News,Thursday,June11, 2008
[2] Daily Dawn, Thursday,June12, 2008