Budget volume likely to squeeze, defence budget likely to expand

ISLAMABAD: News are emerging from all corners ahead of the announcement of annual budget FY2025-26, with some documents reportedly hinting that while the overall budget volume of the fiscal year is likely to be kept at Rs 17.573 trillion, down from nearly Rs 18.877 trillion last year, the defence budget is likely to be expanded from Rs 2.12 trillion last year to Rs 2.55 trillion this year.

Budget deficit is estimated to be 3.9 percent of GDP, the documents reportedly show. Proposals have also been made to set the total federal revenue target at Rs 19.298 trillion, with tax collection target for the Federal Board of Revenue (FBR) set at Rs 141.31 trillion.

Moreover, the non-tax revenue target is proposed to be set at Rs 5.167 trillion.

Estimated revenue transfer to the provinces will be Rs 8.206 trillion, as per the documents, while the net federal income is estimated to be Rs 11.072 trillion.

Furthermore, proposal has been made to allocate Rs 8.207 trillion for interest payment on loans.

Also read: No new cars, no surprise funds: Annual Budget FY2025-26 leans on austerity with ambition