The coalition government is all set to present its first pro-people, business-friendly, and ‘progressive’ budget for the next fiscal year 2022-23 in the Parliament tomorrow with a special focus on fiscal consolidation to contain the budget deficit.
Minister for Finance Miftah Ismael will present the budget document.
The budget has been formulated while considering the existing challenges being faced by the economy on domestic and international fronts.
The total outlay of the budget would be around Rs9.5 trillion including Rs8.79 trillion in current expenditures and Rs800 billion for Public Sector Development Program (PSDP).
Sources said that the government has proposed to allocate Rs4 trillion for debt servicing including Rs3.5 trillion for interest payments on loans and Rs500 billion for interest payments on external loans.
Meanwhile, the government is allocating Rs1,232 billion for grants and transfers, Rs578 billion for subsidies, and Rs398 billion for other expenditures for the next fiscal year.
On the other hand, the FBR on the instruction of IMF has decided to impose new taxes worth Rs1,100 billion besides withdrawing sales tax exemptions.
Sources said that the Finance Ministry is projecting a budget deficit of 4.8 percent of GDP (Rs3.8 trillion) for the next fiscal year to revive the stalled IMF loan program
Keeping in view the robust growth of revenues during the current fiscal year (2021-22), the government is likely to set the revenue collection target at over Rs7 trillion for the fiscal year 20222-23.
Sources said the preparations for the announcement of the federal budget for the fiscal year 2022-23 continued in full swing per the prescribed timelines.
It would also focus on social sector development besides introducing reforms for improving governance and boosting private sector investment.
On the revenue side, the government would introduce measures for bringing improvements in the system of tax collection, broadening the tax base and facilitation to tax payers.
