Islamabad, June 9, 2023 – Minister for Finance and Revenue, Muhammad Ishaq Dar, presented the highly anticipated Federal Budget for the fiscal year 2023-24 in the National Assembly on Friday. The budget, with a total outlay of Rs14.46 trillion, aims to provide relief to the nation while setting a realistic target of 3.5% real GDP growth despite the existing economic challenges.
In his address to the assembly, Minister Dar acknowledged the ongoing difficulties faced by the government in steering the economy in the right direction. However, a responsible and balanced approach was adopted in crafting the budget, taking into account the economic scenario and avoiding populism, especially in light of the upcoming election year.
The estimated total expenses for the fiscal year 2023-24 amount to Rs14.46 trillion, with a significant portion of Rs7.3 trillion allocated for interest payments. The budget deficit is projected to remain at 6.54%, while the primary balance is expected to achieve a surplus of 0.4% relative to the gross domestic product (GDP).
READ MORE: Finance Bill 2023 Unveils Comprehensive Amendments to Income Tax Ordinance
To meet the country’s financial needs, the Federal Board of Revenue (FBR) has been given the target of collecting Rs9.2 trillion in taxes for the next fiscal year. This figure includes the provincial share of Rs5.276 trillion, ensuring a coordinated approach to revenue generation.
Additionally, federal non-tax revenues are estimated at Rs2.963 trillion, contributing to the total income of the Federal Government, which is projected to reach Rs6.887 billion.
Recognizing the significance of development projects, Minister Ishaq Dar has allocated Rs950 billion to the Public Sector Development Programme (PSDP) for the fiscal year 2023-24. In a bid to further accelerate the development agenda, an additional Rs200 billion will be secured through public-private partnerships.
READ MORE: List of amendments to Sales Tax Act through Finance Bill 2023
In terms of expenditures, the budget designates Rs1.8 trillion for the country’s defense needs and Rs714 billion for civil administration. Moreover, a substantial sum of Rs761 billion has been earmarked for employee pensions, showcasing the government’s commitment to its workforce.
To ensure the well-being of the public, the government has allocated Rs1.074 trillion for subsidies in various sectors, including electricity and gas.
Minister Ishaq Dar’s unveiling of the Rs14.46 trillion Federal Budget for the fiscal year 2023-24 demonstrates a strategic and prudent approach that prioritizes relief measures and sustainable growth. By addressing key challenges and allocating resources accordingly, the government aims to foster economic stability and prosperity for the nation.
READ MORE: Complete details of amendments made to Customs Act through Finance Bill 2023
