Federal Govt is announcing the budget on June 9 with an expected outlay of Rs 13-15 trillion
ISLAMABAD: The coalition government is expected to announce a Rs 13-15 trillion budget for the financial year 2023-24.
The tax and non-tax revenue target for 2023-24 is expected around Rs 9 trillion. It will be higher by 21 percent in comparison with Rs 7.5 trillion targets for the outgoing fiscal year 2022-23.
The tax revenue collection target for 2023-24 would be 29 percent higher than the estimated tax collection in FY22-23.
Revenue targets in the past have also varied by an average of 8% in the last five years from actual targets. “We expect the same to happen in FY24 amid the economic slowdown,” it added.
Meanwhile, in FY24, the non-tax revenue target is expected around Rs2.5 trillion, 900 billion rupees u from the Rs1.6 trillion target for 2022-23.
In the new budget, the government would continue some tax measures, including the tax on undistributed reserves, super tax, a shift from the final tax regime to the minimum tax regime, asset/wealth tax, a higher tax on non-filers, tax on rental income, and higher tax on banks, tobacco, and beverages, etc.
Rs 2.66 trillion National Development Plan for 2023-24
The Annual Plan Coordination Committee of the government approved a Rs 2.66 trillion outlay for the National Development Plan for 2023-24.
The total Rs2.66 trillion development outlay envisages Rs1.1 trillion of the federal program. It also includes Rs150 billion in private financing and about Rs1.56 trillion in provincial annual development plans (ADPs).
The total amount also includes the Rs 950 billion federal Public Sector Development Programme. The PSDP will boost the economic growth rate to 3.5 percent in 2023-24. In the outgoing fiscal year 2022-23, the economic growth is expected at just 0.3pc.
The GDP growth rate of 3.5pc in 2023-24 is connected to 3.6pc growth in the services sector, 3.5pc expansion in agriculture, and 3.4pc industrial growth.
However, Planning and Development Minister Ahsan Iqbal said the National Development Plan is subject to change with the consent of caretaker governments in Punjab and Khyber Pakhtunkhwa. Both the provincial governments did not uplift funds so far.
Meanwhile, the National Economic Council will approve the macroeconomic framework and the development plan in a few days. The NEC is the highest forum on the macroeconomic and development agenda in the country. Prime Minister is the head of the NEC.
