The Federal Budget for the next financial year 2026-27, with a total outlay of 18,771 billion rupees, has been presented with a focus on accelerating economic growth and providing tax relief.
Unveiling the budgetary proposals for the next financial year in the National Assembly in Islamabad on Friday, Minister for Finance Muhammad Aurangzeb said that, out of the total outlay, 8,054 billion rupees will be earmarked for the payment of markup.
The Finance Minister said the gross revenue of the Federal Government for the next fiscal year is estimated to be 20,600 billion rupees. FBR revenue collection is estimated to be 15,264 billion rupees, which is 17.6 billion rupees higher than the current fiscal year. The share of provinces in the federal receipts is 8,848 billion rupees. The target of non-tax revenue is 5,336 billion rupees.
Muhammad Aurangzeb said the GDP growth rate for the next fiscal year is expected to be four percent, while the average inflation rate is expected to be 8.2 percent. The budget deficit will be 3.6 percent of GDP, while the primary surplus will be two percent of GDP.
The Finance Minister said 1000 billion rupees have been allocated for the federal PSDP. He emphasized that the country’s defence is the government’s foremost priority for which three thousand billion rupees will be provided. One thousand one hundred sixty-nine billion rupees have been earmarked to meet pension expenditures, while 1,091 billion rupees are being allocated for subsidies on electricity and other sectors.
Similarly, two thousand six hundred eighty billion rupees are being set aside in the domain of grants for the Benazir Income Support Programme, Azad Jammu and Kashmir, Gilgit-Baltistan, and the newly merged districts of Khyber Pakhtunkhwa.