On Wednesday, or tomorrow, the federal budget for the upcoming fiscal year will be presented in the National Assembly. It will include an ambitious spending plan of Rs18,900 billion, predicated on a Rs9,800 billion deficit.
The people would bear a heavy price for the fiscal strategy’s increased taxes and inflation, as power rates are predicted to increase by Rs. 5 to Rs. 7 per unit. It is anticipated that inflation would rise above the stated 12 percent objective.
Additionally, a Rs3,792 billion development budget has been proposed for the first time in history.
Among the budget proposal’s main points are:
Development Initiatives and Outside Funding
A number of development projects will mostly rely on outside finance. For these projects, the government has chosen to borrow Rs. 932 billion.
The provinces will borrow Rs 616 billion of this, with Sindh receiving the largest portion at Rs 334 billion, while the federal government will take out Rs 316 billion. Punjab, Khyber Pakhtunkhwa, and other areas will likewise be heavily reliant on foreign debt.
Development and Growth Objectives
A growth rate of 3.6 percent is the target for the budget, with 4.4 percent designated for industrial development and 2 percent for agricultural development. The aim for imports is $68.1 billion, while the target for exports is $40.5 billion. With major allocations of Rs 253 billion for energy, Rs 279 billion for communication, and Rs 93 billion for education, the development budget of Rs 827 billion has been approved. Additional funding (Rs 64 billion) is designated for Azad and merged districts.
