ISLAMABAD – The PML-N government is all set to present the federal budget for the next fiscal year today with a total outlay of Rs 14,500 billion amid political instability and dire economic situation.
The budget deficit is likely to be above Rs6,000 billion, with expenses of Rs 7,300 billion allocated to pay the debt. In another bid to salvage IMF, the federal budget will propose to levy new taxes of more than Rs700 billion.
The developmental budget for the upcoming FY is likely at Rs 1,150 billion while regions are expected to get Rs 5,244 billion. Defense expenses are estimated to exceed Rs 1,800 billion.
The massive Rs975 billion subsidy will be allocated to the energy sector. All eyes are on salaries of government employees as reports suggest an increment of a 20-30 percent hike in salaries for government employees in the upcoming federal budget. along with a 20 percent increase in pensions.
In the budget, several items like chocolates, cigarettes, cosmetics, shaving items, cornflakes, electronics, and cereals will become more expensive.
Meanwhile, non-filers also come under tax collection authorities whereas withholding tax will be levied on the withdrawal of cash from banks.
This is a developing story and will be updated later…