ISLAMABAD: The federal government is set to present budget 2018-19 with a total outlay of Rs5.5 trillion against Rs4.75 trillion for the outgoing year today (Friday).
According to sources at Federal Board of Revenue (FBR), there could be a drastic reduction in collection of taxes after the introduction of amnesty scheme, the target of tax collection for the next financial year is being fixed at Rs4450 billion, with the estimated 15 per cent increase.
Sources said that the defence budget for next fiscal year is likely to be Rs1.5 trillion as compared to Rs920 billion plus the supplementary grant of Rs60 billion. The cabinet earlier had approved Rs1.1 trillion for regular defence budget and another Rs100 billion for Armed Forces Development Programme (AFDP) – a sum of Rs1.2 trillion.
Though it was expected that government may announce a hike in salaries of employees to get political benefit from the 6th budget by announcing over 10 per cent increase, however, a 7.5 per cent increase is expected. However, pensioners will get a 15 per cent jump in the next budget. Besides, the government is going to announce 40 per cent house ceiling and utility allowances ranging Rs2000 to Rs20000 as per grade. The executive allowance for cadre posts would be one salary plus perks.
The sources claim that the government has fixed the target of foreign debt at $13 billion for FY 2018-19.
To ensure the rise in exports the government has allocated Rs70 billion to Rs80 billion as exports package to the exporters in the next budget.
The cumulative size of the federal Public-Sector Development Programme (PSDP) and provincial Annual Development Programmes (ADPs) would be Rs2.043 trillion, including Rs1.030 trillion federal PSDP and Rs1.013 trillion provincial ADPs.
The core PSDP 2018-19 has been set at Rs825 billion including Rs175 billion of foreign exchange component (FEC) compared to Rs866billion of the current year including FEC of Rs162 billion.
Prime Minister’s Adviser on Finance and Revenue Miftah Ismail said the total PSDP to be funded through the budget would be Rs930 billion.
The Planning Commission has indicated an amount of Rs100 billion for public-private partnership by National Highway Authority (NHA) that would not be part of budget expenditure. According to sources, new projects costing Rs835 billion will be added in CPEC and its supporting projects during 2018-19.
For subsidies, the government has proposed Rs221 billion in the next budget which is up from Rs144 billion revised budget for the outgoing year.
A total number of projects in 2018-19 would be 1235 including 726 ongoing and 509 new schemes.
