Islamabad: Ministry of Finance has estimated the federal budget deficit for the upcoming fiscal year 2025-26, starting from July 01, at Rs 7,222 billion.
Initial Budget estimates suggest federal budget deficit at Rs 7,222 Billion with the provincial surplus will be Rs 1,360 billion. The overall budget deficit will be reduced to Rs 5,862 billion or 4.4 percent of GDP.
The Ministry of Finance has estimated the federal budget deficit for the upcoming fiscal year 2025/26, starting from July 1, at Rs 7,222 billion.
After paying interest in the upcoming fiscal year, the federal government is estimated to have only Rs 2,242 billion left for development projects, defense, salaries, pensions, subsidies and grants.
Including all other expenses, as a result of which the federal government may have to rely on loans to meet its expenses.
According to sources, the federal budget deficit for the upcoming fiscal year has been estimated at Rs 7,222 billion or 5.5 percent of GDP.
According to sources, the total revenue of the federal government for the next fiscal year is estimated at Rs 19,111 billion, of which the FBR tax revenue is estimated at Rs 15,270 billion and non-tax revenue is estimated at Rs 3,841 billion.
However, after transferring Rs 8,780 billion from the FBR tax collections to the provinces under the NFC award.
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The federal government is estimated to have a net revenue of Rs 10,331 billion and after paying Rs 8,106 billion in interest from the net revenue, i.e., the federation will have only Rs 2,225 billion left for all remaining expenses.
Sources in the Ministry of Finance say that the total expenditure of the federal government in the next fiscal year is Rs 19,111 billion.
An estimated Rs 17,553 billion has been allocated, of which the largest amount has been allocated for interest payment expenses.
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The remaining expenses include defense, pensions, salaries, development budget, subsidies and grants, among others. Story by AHmed Mukhtar.
