The government unveiled the budget for the fiscal year 2021-22 on Friday, with the outlay kept at Rs8,478 billion and the tax target set at an ambitious Rs5,829 billion.
So what’s the government’s plan for the next fiscal year? Let’s find out:
The government has set the target of tax revenue at Rs5,829 billion, non-tax revenue at Rs2,080 billion (gross revenue receipts to be Rs7,909 billion, of which provinces will get Rs3,412 billion). Other than that, non-revenue receipts are expected to be 4,497 billion, non-bank borrowing to touch 1,241 billion, net external receipts to come in at 1,246 billion, bank borrowing to be Rs681 billion and privatization proceeds to fetch Rs252 billion. The provinces are also expected to run a surplus of Rs570 billion, which the government will repurpose to finance its spending.
Current expenditures will include interest payments of Rs3,060 billion, pensions of Rs480 billion, defence services spending of Rs1,370 billion and grants and transfers to provinces and other subsidies of Rs1,168 billion. The running of civil government is expected to incur Rs479 billion, while contingencies have been given Rs25 billion. A separate provision of Rs100 billion has been made for disaster, emergency, and COVID. There is a separate provision for ‘pay and pension’ of Rs160 billion. Apart from this, development expenditures under the federal Public Sector Development Programme have been allocated Rs900 billion, while the government also expects to lend Rs64 billion for development purposes.