The federal budget for the fiscal year 2025-26 has been laid out in detail, offering a comprehensive glance at how the government plans to mobilize and spend its financial resources over the coming year.
With total outlays and total resources both estimated at Rs17,573 billion, the budget aims for a balanced fiscal approach, addressing both development needs and essential current expenditures.
At a glance, the budget draws heavily from tax and non-tax revenues. The Federal Board of Revenue (FBR) is expected to collect Rs14,131 billion in tax revenue, contributing significantly to the Federal Consolidated Fund. Non-tax revenue is projected at Rs5,147 billion, bringing the gross revenue receipts to Rs19,278 billion. However, after transferring Rs8,206 billion to provinces under the National Finance Commission (NFC) Award, the net revenue receipts for the federal government stand at Rs11,072 billion.
To bridge the fiscal gap, the government plans to generate Rs6,501 billion from various sources: Rs2,874 billion through non-bank borrowing (including National Savings Schemes), Rs106 billion via net external receipts, Rs3,435 billion through bank borrowing (via T-Bills, PIBs, and Sukuk), and Rs87 billion from privatization proceeds. This brings the total available budget resources to Rs17,573 billion—exactly matching projected expenditure.
On the expenditure side, the budget at a glance reveals a major portion—Rs16,286 billion—allocated for current expenditures. Interest payments alone make up Rs8,207 billion, while pension expenses are budgeted at Rs1,055 billion, reflecting the government’s ongoing commitment to retired employees. Defence affairs will receive Rs2,550 billion, and Rs1,928 billion will go towards grants and transfers to provinces and other entities.
Additional current expenses include Rs1,186 billion in subsidies and Rs971 billion for running the civil government. A provision of Rs389 billion has been made for emergencies and unforeseen requirements.
Development and net lending stand at Rs1,287 billion, including a Rs1,000 billion allocation for the Public Sector Development Programme (PSDP) and Rs287 billion for net lending.
At a glance, the budget for 2025-26 strives to strike a balance between meeting fiscal obligations and driving national development, ensuring transparency and prudent financial management. With carefully outlined resources and expenditures, the budget at a glance provides a clear roadmap for the government’s financial direction in the upcoming year.