Islamabad (PPI) - The Pakistan Economy Watch (PEW) on Sunday said the Rs 3.25 trillion budget seems to be too optimistic when it comes to additional taxation measures of Rs 133 billion and 4.5 pc growth rate for FY 2010-11. Dr Murtaza Mughal, President PEW said that 50 per cent hike in salaries of govt employees and income tax exemptions for businessmen and salaried class has nothing to do with the majority who are not immune to the uncontrolled inflation. He said that WHT on power bills has been decreased by five percent while FED on gas has been enhanced which will increase cost of CNG and electricity generation. It will contribute towards poverty and push cost of doing business upwards. An increase of 57.7 per cent in federal transfers to provinces, imposition of additional tax on cigarette manufacturers and cut on import duties on medicine and edible oil inputs many bring prices of some essentials slightly down, he said. He said allocation to health sector has been cut by 27 per cent, share of Pakistan Atomic Energy Commission has been sliced by 22pc, tourism part slashed by 35 percent, cultural promotion will get 21pc reduced amount while HEC will face a reduction of Rs7b as compared to last year, which is a serious blow to education. He warned efforts for a cleaner environment will face setback as the allocation to this sector has been trimmed by 55 percent. Defence budget is up by 64 billion while spending by Presidency and PM house has been jacked by 27 percent. In such a situation, how come rulers ask others to curtail unnecessary spending, Dr Mughal asked. He added taxation proposals are not realistic as government preferred to remain silent on agricultural tax. No measures were announced to boost agriculture, promote exports or curtail smuggling through transit trade agreements. He said PEW believes that government is not in a mood to introduce any basic changes which will push it to slap more cuts on developmental expenditure. Government will continue to borrow heavily to meet expenditures. Additionally, it will continue to boost forex reserves through foreign loans, he added.