ISLAMABAD
The PML-N government will present its third budget for the next fiscal year in the first week of June 2015 with the budget deficit target of 4 per cent of the GDP.
“The budget’s preparations are in initial stages and finance ministry has prepared the budget strategy paper (BSP), which is likely to be presented in the next Cabinet meeting for approval”, a finance ministry official said while talking to The Nation on Saturday.
Sharing main features of the budget, he informed that this time budget deficit target will be lower than outgoing year’s target of 4.9 percent. The Federal Board of Revenue (FBR)’s revenue collection could be around three trillion rupees for the next fiscal year, which was initially Rs 2.8 trillion for the current year but later it was revised to Rs 2.69 trillion. The government would once again focus on bringing non-tax filer into tax net and would eliminate tax exemptions in the next budget for the revenue generation.
Similarly, according to the initial estimates of the government, the volume of the Public Sector Development Programme (PSDP) could be Rs 570-575 billion for the upcoming year 2015-2016 as against the Rs 525 billion fixed for the outgoing financial year. Currently, the government is releasing the funds for the PSDP at much slower pace to keep its budget deficit within target. The government had released only Rs 309 billion for the PSDP during ten months (July-April so far) of the current financial year.
The government is likely to set GDP growth target at unrealistic 6 percent for the next fiscal year as against the target of 5.1 percent. However, the International Financial Institutions believe that Pakistan could not achieve even this target, as World Bank estimates that GDP would remain at 4.4 percent, IMF 4.3 and ADB at 4.2 percent.
Sources further informed that defence budget is likely to increase by 10 percent for the upcoming year. The defence budget could be Rs 770 billion for 2015-2015 as against Rs 700 billion of the outgoing fiscal year.
The amount allocated for the subsidies could be Rs 150 billion as compared to the 203 billion of the current year. The government is likely to enhance the salaries and pensions by 10-15 per cent for the next financial year.
The government would discuss the budget figures with the International Monetary Fund (IMF) during next review talks to be held from May 1 to May 10, 2015 in Dubai.
Meanwhile, Finance Minister, Senator Mohammad Ishaq Dar has issued instructions for completing all preparations for budget 2015-16. Finance Minister, Senator Mohammad Ishaq Dar has issued instructions for completing all preparations for budget 2015-16 which is likely to be presented in the National Assembly in the first week of June 2015. The minister was given a detailed briefing on budget preparations including a comparative analysis of the revenue and expenditure position as under budget 2014-15 and the projected numbers as under budget 2015-16, by the Secretary Finance at a meeting here Saturday morning.
The minister was informed that all Principal Accounting Officers (PAOs) have been asked to put forth their budget in May and by the end of the month, budget documents as well as the Finance Minister’s speech would be finalized. The minister on the occasion remarked that while finalizing the budget, interest and aspirations of the people at large should be accorded top priority.
Secretary Finance, Waqar Masood, Advisor Finance Division, Rana Assad Amin, Additional Secretary Budget, Dr. Shujaat Ali,  Additional Secretary to Finance Minister, Tariq Mahmood Pasha and JS to Finance Minister, Awais Manzoor Samra attended the meeting.