The Pakistan federal budget of 2010–2011 has been prepared in accordance with the budgeting and accounting classification system that has been approved by the Government of Pakistan as an integral part of the New Accounting Model. The three years medium-term indicative budget ceilings for the current and development budgets as approved by the Cabinet were issued to all Principal Accounting Officers of the Federal Government. Overview The Government of Pakistan announced federal budget for fiscal year 2010–2011 having total volume of more than two and a half trillion rupees on 5 June 2010. Federal Minister for Finance and Economic Affairs Senator Abdul Hafeez Shaikh presented the budget before the National Assembly. The following major changes reported by federal government: Total budget outlay for 2010–11 is Rs 3259 billion, which is 10.7 percent more than the current year. 50 percent ad hoc allowance of basic salaries to be granted to government employees. GST reduced from 17 to 16 percent. Salaries of government employees raised by 50 percent. Federal Cabinet cut down its salaries by 10 percent. Medical Allowance for employees of Grade-1 to 15 increased by 100 percent. While the raise in medical allowance for employees of Grade-16 to 22 is 15 percent of their basic pay. Rs 1 CED imposed on manufacturing of each cigarette. Tax revenue is targeted at 1.78 trillion rupees out of which the Federal Board of Revenue will collect 1.667 trillion rupees, about 9.8 percent of GDP. Non-tax revenue is targeted at 632.2 billion rupees. Revenue from direct taxes is targeted at 657.7 billion rupees and revenue from indirect taxes is targeted at 1.12 trillion rupees. Subsidies will be reduced to 126.68 billion rupees from 228.99 billion rupees. Development spending or the public sector development spending is targeted at 663 billion rupees, with 373 billion rupees allocated for provinces, and 280 billion rupees as the federal component. Inflation is targeted at 9.5 percent in 2010/11 fiscal year, down from the central bank's forecast of between 11.5percent and 12.5 percent for the year ending 30 June. The defence budget is set at 100.0 billion rupees, a 17percent increase from year 2010. The debt-to-GDP ratio has climbed to 55 percent. 30 million energy savours will be provided in a bid to conserve electricity. Burden of 235 billion on the country's budget due to losses being incurred by state owned enterprises including Pakistan International Airlines (PIA), Pakistan Steel Mills