ISLAMABAD - The government has planned to keep Rs 933 billion for interest payment in budget for the upcoming financial year 2012-13 that would be 17 per cent higher than the allocation of current fiscal year Rs 795 billion, official told on Friday.

Sources informed The Nation that government is most likely to increase the pensions by 20 per cent and it would allocate Rs 147 billion for pension amount for fiscal year to come, which would be Rs 20 billion more than the current year. However, sources said that government has yet to decide how much salaries would be increased in the budget. Meanwhile, government would allocate Rs 120 billion for the subsidies to be given in the fiscal year to come.

The government has already finalised the broad contours of the budget to be presented on May 25, however sources said that government would take its coalition parties on board after the return of Finance Minister from USA likely in next week.

It might be recalled here that government has planned to fix Public Sector Development Programme (PSDP) at Rs 350 billion for the Centre as compare to the Rs 300 billion of the outgoing financial year, defense budget at Rs 545 billion as against Rs 495 billion of the outgoing fiscal year. GDP growth is projected at 4.5 per cent and inflation rate is expected to fix at 9.5 per cent and fiscal deficit at 4.2 percent and Current Account deficit has been estimated at $4.1 billion, exports at $26.7 billion and import $42 billion for the upcoming financial year 2012-13. Meanwhile, the revenue collection target for the next fiscal year would be around Rs 2,340 billion, remittances are estimated at $13.1 billion in 2012-13.