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" AGRO-INDUSTRIAL BUDGET 2005-06 AGRO-INDUSTRIAL BUDGET 2005-06   By M. Iqbal Patel, F. C. A. , Chartered Accountant, Karachi     The Government is celebrating with its tall claim that it has achieved a growth rate of 8.4% after decisive struggle and thus has achieved the welfare of the people. Whereas the people are searching in daylight with candle the prosperity and the improved standard of living as claimed by the Government to have been achieved. The growing inflation which reached to 9.3% with food inflation at around 13% has robbed the purchasing power of the poor thereby the prosperity which would have accrued to the people of Pakistan as a result of economic growth remained limited to the richer to become richer. Thus the economic policies of the Government are indicative that its leading the country to the concentration of wealth in few hands.   The Government in formulating the budget has concentrated to two major sectors of the economy viz agriculture and textile. It has offered them numerous fiscal benefits and incentives. The growth of agriculture sector in GDP was 7.5% and of manufacturing sector at 12.5%. The agriculture and manufacturing sectors have 21.5% and 15.9% respectively share of GDP. Whereas the agriculture has yield of only 1.2% in taxes; it eats up the taxes paid by the taxpayers while manufacturing sector pays 61 % taxes, with the exception of textile sector whose contribution to tax is meager. These two sectors: are creating distortion by not paying tax proportionately to their share to GDP.   The Government in order to boost the confidence of the landlords offered incentives to them in 2004-05 including imported fertilizer was supplied to them at cheaper rate, provided relief of Rs.3.8 bin, paid loan of Rs 100…