Islamabad: The Federal Government of Pakistan unveiled its budget for the fiscal year 2024-25 on Wednesday, June 12, 2024, totaling an ambitious Rs 18.877 trillion.
This comprehensive budget outlines the country’s financial strategy for the upcoming year, addressing both revenue generation and expenditure allocation.
Revenue Breakdown
The total resources for the fiscal year are projected at Rs 18,877 billion. The primary source of revenue comes from tax collections by the Federal Board of Revenue (FBR), which is expected to contribute Rs 12,970 billion to the Federal Consolidated Fund. Non-tax revenue sources are anticipated to bring in Rs 4,845 billion.
• Gross Revenue Receipts: Rs 17,815 billion
• Less Provincial Share: Rs 7,438 billion
After accounting for the provincial share, the net revenue receipts stand at Rs 10,377 billion.
Additional Resources
In addition to the net revenue receipts, the budget includes:
• Non-Bank Borrowing (NSSs & Others): Rs 2,662 billion from the Public Account.
• Net External Receipts: Rs 666 billion into the Federal Consolidated Fund.
• Bank Borrowing (T-Bills, PIBs, Sukuk): Rs 5,142 billion.
• Privatization Proceeds: Rs 30 billion.
Combined, these additional resources amount to Rs 8,500 billion, rounding out the total resources to the projected Rs 18,877 billion.
Expenditure Allocation
The total expenditure for the fiscal year is also pegged at Rs 18,877 billion, divided between current expenditures and development projects.
Current Expenditure: Rs 17,203 billion
• Interest Payments: Rs 9,775 billion, a significant portion reflecting the high debt servicing requirements.
• Pensions: Rs 1,014 billion.
• Defence Affairs and Services: Rs 2,122 billion, underscoring the priority given to national security.
• Grants and Transfers to Provinces & Others: Rs 1,777 billion.
• Subsidies: Rs 1,363 billion, aimed at providing relief in various sectors.
• Running of Civil Government: Rs 839 billion.
• Provision for Emergency and Others: Rs 313 billion, ensuring preparedness for unforeseen contingencies.
Development Expenditure: Rs 1,674 billion
• Federal Public Sector Development Programme (PSDP): Rs 1,400 billion, focusing on infrastructure and socio-economic projects.
• Net Lending: Rs 274 billion.
Key Highlights
The budget reflects a strong focus on fiscal stability and development, balancing between essential public services and development initiatives. The significant allocation for interest payments indicates the burden of existing debt, while the substantial defense budget reaffirms the government’s commitment to national security. Development expenditure, particularly through the PSDP, highlights ongoing efforts to bolster infrastructure and economic growth.
The Pakistan Budget 2024-25 aims to navigate the challenges of fiscal management while addressing the needs of defense, public welfare, and development. With an emphasis on resource generation and strategic spending, the government seeks to pave the way for sustained economic growth and stability.
