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Govt Set to Unveil Rs. 9.6 Trillion Budget for FY23

The coalition government led by Prime Minister Shehbaz Sharif will unveil a Rs. 9.6 trillion budget including Rs. 800 billion for development projects in the parliament for the next fiscal year 2022-23.

Sources said that the overall outlay of the budget is expected at Rs. 9.59 trillion including Rs. 8.79 trillion current expenditures and Rs. 800 billion for Public Sector Development Plan (PSDP).

The proposed Rs. 800 for PSDP will include Rs. 739 billion from local resources and Rs. 61 billion from foreign aid. The government plans to allocate Rs. 346 billion for development schemes of federal ministries, Rs. 164 billion for corporations including WAPDA, NHA, and NTC, Rs. 52 billion for Special Areas including Azad Jammu and Kashmir and Gilgit-Balstistan, Rs. 31 billion for provincial projects, Rs. 50 billion for the districts of ex-FATA and Rs. 70 billion for SDGs for the next fiscal year.

Sources said that the government has plan to propose Rs. 4 trillion for debt servicing including Rs. 3.5 trillion for interest payments on local loans and Rs. 500 billion for interest payments on external loans. The government is estimating the highest debt servicing on basis of an average 14 percent interest rate for the next fiscal year.

After the payment of debt servicing, the big chunk will go for defense expenditures as the government is going to propose Rs. 1.6 trillion for the defense budget for the next fiscal year, sources said.

The payment of pension of retired government servants from the national exchequer is emerging as a big issue for the government as pensions are almost touching the total cost of running the government affairs. According to the sources, the government is considering Rs. 530 billion for payment of pension to retired government servants. The government will allocate Rs. 550 billion for running the civil government for the next fiscal year.

The government is allocating Rs. 1232 billion for grants and transfers, Rs. 578 billion for subsidies and Rs. 398 billion for other expenditures for the next fiscal year.

On the revenue side, the government wants to set an ambitious target due to the pressure of the International Monetary Fund (IMF). It is considering setting a target Rs. 7.2 trillion for tax collection by the Federal Board of Revenue (FBR) and Rs. 1.5 trillion for non-tax revenue for the next fiscal year.

The government is also projecting a budget deficit of 4.8 percent of GDP (Rs. 3.8 trillion) which will be bridged through borrowing from external and internal sources.

Source: Pro Pakistani

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