Daily Dawn Commerce Reporter + Dawn TV
Islamabad: The Ministry of Finance has estimated the federal budget deficit for the next fiscal year 2025-26 starting from July 1 at Rs 7,222 billion.
After paying interest in the next fiscal year, the federation is estimated to have only Rs 2,225 billion left for development projects, defense, salaries, pensions, subsidies and grants, including all other expenses, as a result of which the federal government may have to rely on loans to meet its expenses.
According to sources in the Ministry of Finance, the federal budget deficit for the next fiscal year is estimated at Rs 7,222 billion or 5.5 percent of GDP, while the provincial surplus is estimated at Rs 1,360 billion.
Including the provincial surplus, the overall budget deficit estimate will be reduced to Rs 5,862 billion or 4.4 percent of the gross national product (GNP).
According to Daily Dawn and Dawn TV sources, the federal government’s total revenue for the next fiscal year is estimated at Rs 19,111 billion, of which the Federal Board of Revenue (FBR) has an estimated tax revenue of Rs 15,270 billion and non-tax revenue of Rs 3,841 billion.
However, after the transfer of Rs. 8,780 billion of FBR tax collections to the provinces under the NFC award, the federal government is estimated to have a net revenue of Rs. 10,331 billion.
After paying Rs. 8,106 billion in interest in the net revenue in the next fiscal year, the federation will have only Rs. 2,225 billion left for all remaining expenditures.
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