Budget 2023-24: Cabinet okays 30pc hike in govt employees’ salaries

ISLAMABAD: The Federal Cabinet on Friday approved a 30 percent increase in salaries of government employees in federal budget 2023-24, ARY News reported, citing sources.

Sources claimed that the participants have okayed the proposal of 30pc hike in salaries of government employees.

Sources claimed that the participants have okayed the proposal of 30pc to 35pc hike in salaries of government employees.

Sources told ARY News that the cabinet approved 35pc hike in salaries of BPS 1 to 16 government employees. Meanwhile, a 30pc hiked in salaries of BPS17 and above employees have been approved.

Moreover, the federal cabinet has also approved 17.5pc increase in pensions of retired officials.

Earlier, it was reported that the Pakistan People’s Party (PPP) has demanded an increase of 50 percent in salaries of government employees.

However, sources claimed, Minister for Finance and Revenue Ishaq Dar proposed a 20pc hike in the pays, citing the country’s current economic situation.

It is pertinent to mention here that Ishaq Dar will present the federal budget for the next fiscal year today with a total outlay of Rs 14.70 trillion.

Sources indicated that the budget size will exceed Rs13,800 billion, while the budget deficit is expected to be more than Rs 6,000 billion, with expenses of Rs 7,300 billion allocated to pay debt.

Sources regarding the budget’s framework revealed that an estimated Rs 9,200 billion may be generated from tax revenue, while non-tax revenue may reach Rs 2,800 billion, while the Rs 1,300 billion could be allocated for subsidies.

READ: Federal Budget 2023-24: Tax on luxury items to remain unchanged

The sources maintained that the developmental budget for the upcoming fiscal year is estimated at Rs 1,150 billion. Furthermore, the provinces are expected to receive Rs 5,244 billion from the national divisible pool, while defense expenses are estimated to exceed Rs 1,800 billion.

 

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