Islamabad (TDI): Finance Minister Muhammad Aurangzeb is set to unveil a Rs17.6 trillion federal budget for the fiscal year 2025–26 in the National Assembly today (Tuesday), amid efforts to stabilize the economy and meet International Monetary Fund (IMF) targets.
The budget session, chaired by Speaker Ayaz Sadiq, will commence at 5pm. As per tradition, the session will open with the recitation of the Holy Quran, Hadith, Naat, and the national anthem, after which the finance minister will present the budget and the Finance Bill 2025.
The proposed outlay of Rs17.6 trillion is slightly lower than last year’s Rs18.78 trillion. The Federal Board of Revenue (FBR) has been assigned a challenging tax collection target of Rs14.02 trillion, compared to the revised estimate of Rs12.33 trillion for the outgoing year.
On the expenditure side, key allocations include:
- Defense: Rs2.55 trillion
- Markup payments: Rs8.2 trillion (down from Rs9.7 trillion last year)
- Pensions: Rs1.05 trillion
- Subsidies: Rs1.186 trillion
- Grants: Rs1.9 trillion
- Federal PSDP: Rs1 trillion
The federal government’s total expenditure is projected at Rs17.573 trillion, with current expenditure at Rs16.286 trillion and development spending at Rs1 trillion.
Gross revenue receipts are estimated at Rs19.298 trillion, including non-tax revenues of Rs5.167 trillion. After transferring Rs8.2 trillion to the provinces under the NFC Award, the Centre will be left with Rs11.072 trillion in net revenue receipts.
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To bridge the fiscal gap, the government expects to require budget deficit financing of Rs6–7 trillion. Provincial governments are expected to generate budget surpluses to help contain the overall deficit under IMF guidelines.
As for pay and pension reforms, the Ministry of Finance has proposed a salary increase of 7.5% to 10% for public sector employees, with Disparity Allowance of up to 30% for grades 1 to 16.
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Following today’s presentation, the National Assembly will observe recess on June 11 and 12, and open debate on June 13, continuing through June 21.
A discussion on charged expenditures is scheduled for June 23, followed by voting on Demands for Grants and Cut Motions on June 24 and 25. The Finance Bill 2025 will be tabled for approval on June 26, with Supplementary Grants to be addressed on June 27.
