In the upcoming federal budget, there is a possibility of a 20-30% increase in salaries for government employees, along with a 20% increase in pensions.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 8th, 2023) The Federal government is poised to unveil the budget for the upcoming fiscal year, with a total volume surpassing Rs 13,800 billion. According to the latest reports, the budget deficit is anticipated to exceed Rs 6,000 billion, with Rs 7,300 billion allocated for debt payments.

Insiders familiar with the budget's framework disclosed that an estimated Rs 9,200 billion may be generated from tax revenue, while non-tax revenue is expected to reach Rs 2,800 billion. Additionally, around Rs 1,300 billion may be allocated for subsidies.

The developmental budget for the next fiscal year is estimated at Rs 1,150 billion, as per the sources. Moreover, the provinces are projected to receive Rs 5,244 billion from the national divisible pool, while defense expenses are expected to surpass Rs 1,800 billion.

In the upcoming federal budget, there is a possibility of a 20-30% increase in salaries for government employees, along with a 20% increase in pensions. Additionally, over Rs 700 billion is likely to be allocated for pensions.

The proposal suggests allocating more than Rs 650 billion for ministries in the budget. Members of Parliament will receive Rs 90 billion for development schemes, while Rs 80 billion will be allotted for the Prime Minister's initiatives.

The sources from the Ministry of Finance revealed that the deficit for the upcoming fiscal year's federal budget 2023-24 is estimated to be around 6.4% of the GDP.

 Furthermore, the combined deficit for the federal and provincial budgets is expected to range between 4.8% to 5%.