ISLAMABAD: The estimated size of the federal budget has been set at Rs17,500 billion.
According to sources, the Federal Board of Revenue target for the fiscal year 2025-26 is expected to be Rs14,100 billion, slightly lower than the previous target of Rs14,300 billion.
The upcoming budget has been prepared in consultation with the International Monetary Fund (IMF), with final decisions made on defence spending, interest payments, development budget, and other expenditure.
The economic team has briefed Prime Minister Shehbaz Sharif on the proposed budget for the next fiscal year.
Sources indicate that taxes will be increased on share dividends and small vehicles. The sales tax on small vehicles is expected to rise from 12.5% to 18%.
The IMF has instructed strict implementation of austerity measures.
Sources in the Ministry of Finance say that negotiations with the IMF were successful. A ban will be imposed on the purchase of new vehicles for federal ministries and departments.
The budget estimate for the next fiscal year is lower than the current fiscal year’s, with a reduction of approximately Rs1,300 billion.
