ISLAMABAD: The federal budget for the upcoming fiscal year 2025-26, with a total volume of Rs. 17,600 billion, will be presented in the National Assembly today (Tuesday). In comparison, the previous fiscal year’s federal budget was Rs. 18,700 billion, and the tax revenue target is expected to be Rs. 14,200 billion.
A 7.5% to 10% increase in the salaries of government employees is expected. According to sources, the defense budget for the next fiscal year is projected at Rs. 2,550 billion.
The estimated total revenue in the budget is Rs. 19,400 billion, with Rs. 8,200 billion allocated for interest payments on loans. Rs. 1,000 billion will be allocated for pension payments, Rs. 1,186 billion for subsidies, and Rs. 1,900 billion for grants.
There is a proposal to increase salaries of government employees by 5% to 7.5%, and pensions for retired employees by 5% to 12.5%. There is also a proposal to grant a 30% disparity allowance to employees from Grade 1 to 16.
Sources say that non-tax revenue is expected to be Rs. 4,500 billion. Due to the provinces’ nearly 60% share in the NFC (National Finance Commission) Award, Rs. 8,000 billion from total revenue will go to the provinces, leaving the federal government with Rs. 6,000 billion.
The budget deficit is expected to range between Rs. 6,200 billion to Rs. 7,000 billion. The federal development budget for the upcoming fiscal year will be Rs. 1,000 billion. The budget proposes Rs. 13.58 billion for education and Rs. 14.30 billion for health.
Targets for the next fiscal year include exports of $35 billion, imports of $65 billion, and remittances of $39.43 billion. The GDP growth target is set at 4.2%, and the average inflation rate is expected to be 7.5%.
The agriculture sector’s growth target is 4.5%, the industrial sector 4.3%, and the services sector 4%. Total federal expenditures will be Rs. 17,573 billion, while current expenditures are estimated at Rs. 16,286 billion.
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