Federal Budget 2023-24 to be presented tomorrow

ISLAMABAD: The federal government is set to announce the federal budget for the next fiscal year tomorrow with total volume exceeding Rs 13,800 billion, ARY News reported on Thursday.

Sources indicated that the budget size will exceed Rs 13,800 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.

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.

There is a possibility of a 20-30 per cent increase in salaries for government employees in the upcoming federal budget, along with a 20 per cent increase in pensions. Moreover, the govt likely to allocation over Rs 700 billion for pensions.

The proposal suggests allocating more than Rs 650 billion for ministries in the budget. Members of Parliament will receive Rs 90 billion for development schemes, while the Prime Minister’s initiatives will be allotted Rs 80 billion.

According to sources from the Ministry of Finance, the deficit of the upcoming fiscal year’s federal budget 2023-24 may be around 6.4 per cent of the GDP, while the deficit for the federal and provincial budgets is estimated between 4.8 to 5 per cent.