Islamabad: The federal government is set to present the budget for the upcoming financial year 2024-2025 today.
According to the details, the federal budget, amounting to 18,900 billion rupees for the next financial year, will be presented in the National Assembly today. Prior to this, the budget will be approved in a cabinet meeting chaired by the Prime Minister.
The proposed budget for the next financial year includes increases in salaries, pensions, and allowances for government employees, with lower-grade employees and pensioners likely to receive relief.
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Sources indicate that the budget includes proposed increases in taxes and GST on imported mobile phones. Additionally, a recommendation to increase the development budget by 1,012 billion rupees has been made, with 3,792 billion rupees allocated for development projects.
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According to documents, 1,500 billion rupees will be allocated to the federal budget, while the provinces’ annual development plan will receive 2,095 billion rupees. The government has also decided to take new loans of 932 billion rupees for development projects in the next financial year. Under this plan, the federal government will take 316 billion rupees in domestic loans and 600 billion rupees in external loans. The Sindh government will take the highest external debt at 334 billion rupees.
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Civil servants’ salaries are expected to increase by 10 to 15 percent in July, with the tax collection target likely to be set at 12.9 trillion rupees. Sources estimate that interest and debt payments will amount to 9.5 trillion rupees in the budget. Additionally, 800 billion rupees are expected to be allocated for energy sector subsidies. Federal tax revenue is anticipated to be around 12.9 trillion rupees, with non-tax revenue initially estimated at 2,100 billion rupees, and a petroleum levy target expected to exceed 1,050 billion rupees.
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The federal government has also decided to increase the retirement age of government employees to 62 years in the next fiscal year and to introduce comprehensive pension reforms to reduce the national exchequer’s pension bill burden.
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An important meeting took place between the Prime Minister and President Asif Ali Zardari regarding the budget. During this meeting, Asif Zardari assured his support for the budget, and discussions included providing relief to the poor.