The Federal Receipts will be inadequate to cover the Largest expense on debt relief in Pakistan’s next fiscal year 2023-24 federal Budget, which is expected to result in a budget shortfall of 1 Trillion rupees.
The PAK spending will revolve around the three ‘D’s of Debt Servicing, Defense or Development, as per the Budget Strategy Paper of the PFM Act. It has to be confirm by the Parliament by April 15 for every financial year, but it has not yet received approval from the Cabinet.
However, if the FBR’s TAX COLLECTIONS reach Rs 9.2 Trillion as targeted in the Next Budget, then 57.5% of the NFC award will be give to the provinces based on their share, bringing the total federal collections to Rs 4 Trillion or the Provinces’ The SHARE Will be Rs 5.2 trillion.
Thus, the total REVENUE from the forthcoming Budget will be close to Rs 6.5 Trillion.
In the light of State Bank’s Policy Rate of 21 Percent, the amount required to pay off loans in the forthcoming Budget has been estimated at 7.5 trillion rupees.