Mohsin Siddiqui (Chief Reporter)
The federal budget for the fiscal year 2024-2025 was presented in the National Assembly by Finance Minister Muhammad Aurangzeb. The session, presided over by Speaker Ayaz Sadiq, began two hours late and commenced with the recitation of the Holy Quran, followed by a naat in praise of the Prophet Muhammad (PBUH).
After the national anthem, Speaker Ayaz Sadiq instructed the finance minister to present the budget. Earlier, during a meeting chaired by Prime Minister Shahbaz Sharif, the federal cabinet approved a 15% increase in salaries and pensions for the upcoming fiscal year. The federal budget, amounting to Rs18.9 trillion, was then presented in the National Assembly, having already received cabinet approval.
The upcoming fiscal year’s budget includes proposals for increases in salaries, pensions, and allowances for government employees. Relief is also anticipated for lower-grade employees and pensioners. According to sources, the budget includes recommendations to increase taxes and GST on imported mobile phones. There is also a recommendation to increase the development budget by Rs1,012 billion, with Rs3,792 billion allocated for development projects.
The budget documents indicate that Rs1,500 billion will be allocated for the federal budget, while the provinces will have an annual development plan of Rs2,095 billion. The government has also decided to take on new loans amounting to Rs932 billion for development projects, with the federal government borrowing Rs316 billion and taking on Rs600 billion in external loans. The Sindh government is expected to take the highest external loan of Rs334 billion.
Government employees’ salaries are expected to increase by 10 to 15%. The tax collection target is likely to be set at Rs12.9 trillion. The budget estimates interest and debt repayments at Rs9.5 trillion. Approximately Rs800 billion is expected to be allocated for subsidies in the energy sector, and federal tax revenue is projected to be around Rs12.9 trillion. Non-tax revenue is initially estimated at Rs2,100 billion, and the petroleum levy target is expected to exceed Rs1,050 billion.
The federal government has made a principle decision to raise the retirement age for government employees to 62 years in the fiscal year 2024-25. Comprehensive pension reforms are also planned to reduce the pension bill burden on the national treasury.
In related news, Prime Minister ShAhbaz Sharif had a significant meeting with President Asif Ali Zardari, in which Zardari assured cooperation on the budget. The discussion also included measures to provide relief to the poor.
