Coalition govt unveils Rs9.5tr 'deficit' budget for FY23

Islamabad: The coalition government unveiled the annual "deficit" budget for the next fiscal year 2022-23 in the National Assembly with an estimated outlay of Rs9.5 trillion.

The budget is being presented amid strict conditions of the International Monetary Fund (IMF) for the revival of the $6 billion extended fund facility (EFF) loan programme stalled since months over policy breaches.

Federal Minister Miftah Ismail is presenting the budget amid absence of PTI lawmakers.

Delivering his speech, the minister said an inexperienced team [referring to the PTI government] brought the country to the brink as different people presented the budget every year presenting different policies which hurt investor sentiment.

Ismail said his government had started repairing the economy by taking the tough decisions that were the need of the hour.

He said the cumulative fiscal deficit would be brought down to 4.9 per cent of the GDP for fiscal year 2022-23. 

He said the federal government's net revenue had been projected to be Rs4,904 billion and non-tax revenue Rs2,000 billion, adding the cumulative expenditure was expected to be about Rs9,502 billion for the next fiscal year.

"The total expenditure for interest payments during the current fiscal year had been estimated at Rs3,144 billion including Rs2,770 domestic and Rs373 billion foreign."

Ismail said the expenditure on intertest payments would jump to Rs3,950 for the next year.

The finance minister added that the public debt of the outgoing fiscal would stand at 72.5% of the GDP as it reached Rs44,365 billion in March 2022. He said the GDP would be be increased from Rs67 trillion to Rs78.3 trillion in the next fiscal year.

He said economic growth rate had been set at 5 per cent for fiscal year 2022-23, adding the target for remittances had been set at $33 billion for the next fiscal year. 

The minsiter said the inflation rate would be brought down to 11.5 per cent, adding the imports would be reduced to $70 billion from $76 billion.

He said the government had earmarked Rs800 billion for Public Sector Development Programme (PSDP) for FY23 , while Rs500 billionhad been allocated for subsidy in the power sector.

The govenment announced 5 percent increase in pension and allocated Rs530 billion for the purpose, the minister said and added the government employees would receive 15 per cent increase in their pays. He said the government was mulling establishing pension fund like other countries.

Ismail said the govenremnt had set Rs7,400 billion revenue target for the Federal Board of Revenue's (FBR) for FY23 with 9pc growth, adding the provinces will be asked to collect Rs4,100 billion. 

He said Rs1,450 billion would be spent on defence, while Rs364 billion had been earmarked for Benazir Income Support Programme (BISE).   

The minister said Rs51 billion had been proposed for higher education, Rs10 billion for environment and Rs24 billion had been allocated for health sector.

More to follow.......