Federal Finance Minister Senator Ishaq Dar will present the budget for the fiscal year 24-2023 today. This will be the second budget of the coalition government and Prime Minister Shahbaz Sharif.
According to sources, the proposed budget size exceeds Rs. 14,500 billion. New taxes worth billions of rupees will also be imposed, and there is a possibility of further increase in the levy on petroleum products.
Before the budget session, the federal cabinet will approve the budget for 24-2023 in its special meeting. The cabinet’s special meeting will take place in Parliament House at 2 PM, followed by its presentation in the National Assembly at 4 PM with a comprehensive speech.
The Finance Minister will head to the Senate at 6 PM, where he will present the budget documents.
In the Senate session, a standing committee on finance will be constituted for recommendations regarding the budget. However, the government is not bound by the Senate’s recommendations when it comes to implementing the budget.
The new budget is expected to include an increase in salaries and pensions for government employees. A proposal of a 30% raise in salaries for Grade 1 to Grade 16 government employees and a 20% raise for Grade 17 to Grade 22 officers has been suggested. A 15% to 20% increase in pensions is also under consideration.
According to sources, the budget for the fiscal year 24-2023 may have a fiscal deficit of 7.7% and a tax revenue target of Rs. 9,200 billion for the next fiscal year.
In terms of non-tax revenue, a target of Rs. 2,800 billion is being set, while subsidies are proposed to be allocated Rs. 1,300 billion.
It is reported that the largest portion of subsidies, amounting to Rs. 976 billion, will be allocated for the power sector. A recommendation of Rs. 7,300 billion has been made for debt servicing, and Rs. 1,800 billion for defense and Rs. 430 billion for the Ehsaas Income Support Program.
Overall development spending will amount to Rs. 2,709 billion. According to sources, the total development budget will be 4% higher compared to the previous year. The federal development budget will be Rs. 1,150 billion, Sindh’s development budget will be Rs. 617 billion with a 40% increase, Punjab’s budget will be Rs. 426 billion, Balochistan’s budget will be Rs. 248 billion, and Khyber Pakhtunkhwa’s development budget will be Rs. 268 billion.
