ISLAMABAD: The federal government cabinet on Tuesday approved Rs17, 573 billion budget for the fiscal year 2025-26 with 10 per cent salary hike and, 7% pension increase.
A crucial meeting of the federal cabinet, chaired by Prime Minister Shahbaz Sharif, was held today in Committee Room No. 2 of the Parliament House. During the session, the federal cabinet officially approved the much-anticipated federal budget for the fiscal year 2025-26.
The total size of the federal budget has been set at Rs 17,573 billion, according to budget documents obtained by Bizaniya Pakhtun Digital. The cabinet also endorsed a 6% increase in salaries of government employees and a 7% hike in pensions, aiming to provide relief amid inflationary pressures.
The budget is scheduled to be presented in the National Assembly later today.
Key Highlights of Federal Budget 2025-26:
- Total Federal Budget Size: Rs 17,573 billion
- FBR Tax Revenue Target: Rs 14,131 billion
- Non-Tax Revenue Target: Rs 5,147 billion
- Estimated Total Revenue: Rs 19,278 billion
- Provincial Share: Rs 8,206 billion
- Interest Payments on Loans: Rs 8,207 billion
- Defence Budget Allocation: Rs 2,550 billion
- Grants and Subsidies: Rs 1,928 billion
- Pension Allocation: Rs 1,055 billion
- Civil Government Expenses: Rs 971 billion
- Emergency Fund Allocation: Rs 389 billion
- Public Sector Development Programme (PSDP): Rs 1,000 billion
- Federal Budget Deficit: Rs 6,105 billion
This comprehensive budget reflects the government’s attempt to balance economic recovery, development needs, and fiscal discipline while managing debt obligations and defence spending.
Stay tuned for more updates as the budget is formally presented in Parliament.
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