ISLAMABAD: While outlining the fiscal budget 2024-25 points, Pakistan’s Finance Minister Muhammad Aurangzeb has said that the gross domestic project (GDP) growth target for the fiscal year 2024-25 is fixed at 3.6 percent, whereas the inflation rate is expected to remain 12 percent.
Finance Minister Muhammad Aurangzeb presented the budget for the fiscal year 2024-25 with a total outlay of Rs18.877 trillion in the National Assembly.
Muhammad Aurangzeb said that the budget deficit to GDP during the period under review is estimated at 6.9 percent, whereas the primary surplus during the review period is projected at 1.0 percent of the GDP.
The minister said that the Revenue collection of the Federal Board of Revenue is estimated to be Rs12,970 billion during upcoming fiscal year, adding that tax revenue collection during the current fiscal year grew by 38 percent and the provincial share would be Rs7,438 billion.
He said that the non-tax revenue targets of the federation are fixed at Rs3,587 billion, whereas the net income of the federal government would be Rs9,119 billion.
The total expenditures of the federal government is estimated at Rs18,877 billion out of the total amount of Rs9,775 billion would be spent on interest payments.
The government has allocated Rs1,400 billion for the Public Sector Development Program in its current budget, adding that an additional amount of Rs100 billion would be allocated under Public Private Partnership, he added.
This year, he said, over all development budget was the highest in the country’s history comprising Rs1,500 billion.
Meanwhile, an amount of Rs1,014 billion is also allocated for pension expenses, adding that Rs1,363 billion is allocated for the subsidy of the gas, electricity and other sectors.
The finance minister announced a 101 percent increase in the development budget, noting that 81 percent has been allocated for ongoing schemes and 19 percent for new schemes.
He also announced development projects in Azad Kashmir and merged districts, adding that completion of ongoing development projects will be the government’s top priority. “The government would focus on export, equity, empowerment, environment, and energy under the 5-E framework,” he added.
Aurangzeb said that 17 major development projects have been included in the budget.
The government has allocated Rs5 billion allocated for the Quaid-e-Azam Health Tower in Islamabad, Rs7bn for development projects in the poorest districts, Rs6bn for the Karakoram Highway project, Rs4bn for digitalisation of the national economy, Rs2bn for the establishment of Danish school in Islamabad and Rs5bn for the establishment of 7 Danish schools in Azad Kashmir and Gilgit-Baltistan.
Referring to the energy projects, the minister said Rs21bn has been allocated for a 600 MW power plant in Jamshoro, Rs14bn for a 500 kV transmission line in Lahore, Rs18bn for the Karachi Coastal Power Project and Rs45bn for the Mohmand Dam Hydro Power Project.
The budget also includes relief measures for government employees, including: 25 percent increase in salaries for BPS1-16, 20 percent increase in salaries for BPS17-22 and 15 percent increase in pensions for retired employees. Meanwhile, minimum monthly wage has been increased from Rs 32,000 to Rs 37,000.
The finance minister acknowledged the difficulties faced by government employees despite economic challenges.
