Finance Minister Ishaq Dar will table the federal budget for the fiscal year 2023-24 on Friday (today) in the National Assembly, with a proposed outlay of Rs14.7 trillion.
The federal cabinet meeting for the approval of the budget is scheduled for 3 pm. And Finance Minister Ishaq Dar will deliver his budget speech to Parliament after 4 pm.
Copies of the budget enclosed in black boxes were delivered to Parliament House under the protection of Islamabad Police. pic.twitter.com/tCBfpJ6aju— Muhammad Tariq Bilal (@MTariqBilal_) June 9, 2023
The government is aiming to meet the requirements of the International Monetary Fund (IMF) in order to potentially secure the release of additional bailout funds.
According to the sources, preliminary budget proposals envisaged a fiscal deficit of 7.7pc of GDP, with total spending at Rs14.5 trillion ($50.7bn) and revenue collection at Rs9.2 trillion ($32.2bn).
The risk of default on sovereign debt is rising, with a higher consolidated budget deficit of over 6% of GDP.
While the country’s economy creaking under twin deficits and record high inflation, which has further dented the popularity of Prime Minister Shehbaz Sharif’s coalition.
In the new budget, the government has set the Federal Board of Revenue’s (FBR) tax collection target at Rs 9.2 trillion, and a non-tax revenue target of Rs 2.7 trillion.
Furthermore, for the non-tax revenue target, the government plans to secure powers by amending the finance bill by increasing the petroleum development levy (PDL) from Rs50 per liter to Rs55-60 per liter in order to collect Rs870 billion in the next budget against revised estimates of Rs550 billion for the outgoing fiscal year.
Addressing a press conference on Thursday, Finance Minister said that the situation was very bad when the PML-N assumed power in 2013. “It was a very difficult year with regard to the economic and overall situation,” he added.
Ishaq Dar said that they would have to take the economy to 2017 for economic stability in the country. “The economy reached at No. 47 from No. 24 within a few years.”
He said that the indicators of the macroeconomic stability have been informed.
“The PML-N has started work on three Es and the year 2023 can be given the name of five Es,” he maintained.