ISLAMABAD - The PML-N government would present budget for the next financial year, 2016-17, on June 3, with an expected outlay of Rs4.418 trillion and deficit target of 3.8 percent of the GDP.

President Mamnoon Hussain has summoned the budget session of the National Assembly on third of the next month.

Meanwhile, the senate session has also been convened on the same day. Prior to the budget session, the president would address joint session of the parliament on June 2.

The National Economic Council (NEC) would meet on May 30, under the chairmanship of Prime Minister Nawaz Sharif, to approve development programme and macro-economic framework for the next fiscal year.

Meanwhile, Finance Minister Ishaq Dar would present the Economic Survey of 2015-2016 on June 2 in order to highlight the government’s performance in the outgoing fiscal year.

Dar said on Tuesday that the budget for the next fiscal year would be pro-people.

He also said the government had constituted a committee, which would decide about increase in salaries and pensions in the upcoming budget.

According to the Budget Strategy Paper, the Ministry of Finance has estimated the budget outlay at Rs4.4 trillion for the upcoming fiscal year.

The government has agreed with the International Monetary Fund (IMF) to fix the budget deficit at 3.8 percent of the GDP for the next financial year, as against 4.3 percent of the GDP of the outgoing fiscal year.

The amount of Rs3.6 trillion has been projected as a tax collection target for the Federal Board of Revenue (FBR).

Meanwhile, the government has decided to fix GDP growth target at 6.2 percent for the year 2016-2017.

The government would miss the economic growth target of 5.5 percent set for the outgoing fiscal year, as it would hover around 5 percent.

The inflation target has been set at 6 percent for 2016-17. Similarly, investment to GDP target has been fixed at 18.7 percent, while the foreign currency reserves have been estimated to increase to $23.6 billion by the end of next fiscal year.

The tax to-GDP ratio has been projected at 12.5 percent in the next fiscal year. The initial estimates of the Ministry of Finance show that the government would spend Rs1.4 trillion on the payment of interest.

The defence budget could be enhanced by around 10 percent in the next financial year to reach Rs860 billion mark from Rs781 billion of the outgoing year.

The federal government would transfer around two trillion rupees to the provinces under the National Finance Commission (NFC) award.

Similarly, an amount of Rs245 billion would be allocated for the pensions, which would be six percent higher than the amount reserved for the purpose during this year.

Meanwhile, Rs169 billion would be earmarked for the subsidies in the FY 2016-2017.

The government is likely to fix Rs800 billion for the Public Sector Development Programme (PSDP) in 2016-17, as against the original estimates of Rs700 billion for 2015-16.

The public debt to GDP ratio will be 59.4 percent in 2016-17, as compared to the original estimates of 62 percent during the current financial year.