The government of Pakistan has revised its budget deficit projection for the outgoing fiscal year to Rs5.2 trillion, equivalent to 3 percent of the Gross Domestic Product (GDP), down from the earlier estimate of Rs6.5 trillion (3.9 percent of GDP). This adjustment follows reductions in both expenditures and revenue targets, as detailed in the Ministry of Finance's budget document.
Revised Revenue and Expenditure Targets
Initially, the government had set the budget deficit target at Rs6.5 trillion or 3.9 percent of GDP. However, the Federal Board of Revenue (FBR) tax collection target was downwardly revised to Rs12.9 trillion from the original Rs14.1 trillion. Similarly, the non-tax collection target was reduced to Rs5.09 trillion. On the expenditure side, total spending was cut to Rs15.6 trillion from the initial estimate of Rs17.6 trillion. These revisions led to the lower deficit projection.
The primary surplus target remained unchanged at Rs3.2 trillion, or 2.5 percent of GDP. The government also slashed the provinces' share under the National Finance Commission (NFC) award to Rs7.6 trillion from the initial Rs8.2 trillion.
Budget Framework for Next Fiscal Year
For the upcoming fiscal year, the overall budget size is set at Rs18.77 trillion. The budget deficit is estimated at 3.6 percent of GDP, with a primary surplus projected at 2 percent of GDP. A significant portion of the budget—Rs8.1 trillion—will be allocated to interest payments. Other major allocations include Rs1.2 trillion for pensions, Rs3 trillion for defense, Rs1.091 trillion for subsidies, Rs1.071 trillion for running the civil government, and Rs430 billion for emergency and other provisions. Development and net lending have been allocated Rs1.276 trillion.
The FBR tax collection target for the next fiscal year is set at Rs15.3 trillion, while the non-tax collection target is fixed at Rs5.37 trillion. The provinces' share in federal receipts will be Rs8.8 trillion. Additionally, Rs838 billion has been allocated for the Benazir Income Support Programme (BISP), marking a significant increase from the previous year.
Punjab Launches Digital Monitoring for Muharram
In a separate development, the Punjab government has rolled out a digital monitoring plan for the month of Muharram. The initiative aims to enhance security and surveillance during religious processions and gatherings. The digital system will enable real-time monitoring of events across the province, ensuring better coordination among law enforcement agencies and timely response to any incidents.
