Budget strategy paper may land in cabinet's meeting amid IMF impasse
Business
Inflation rate is expected to remain at 21pc in the next fiscal year
ISLAMABAD (Dunya News) - Amid unertainty over the International Monetray Fund (IMF) programme, the budget strategy paper (BSP) for a period of three years is expected to be presented before the federal cabinet by next week, Dunya News learned reliably.
The Shehbaz-led government has decided to present the next budget on June 9. The paper will be tabled amid the government’s failure to revive the stalled International Monetary Fund (IMF) programme.
Sources said Rs1.7 trillion would be likely to be allocated for the defence budget in the upcoming fiscal year (FY2023-2024), while the current fiscal year's defence budget was set at Rs1.56tr.
They further said a 6.4 per cent deficit of the GDP is being proposed for the next fiscal year, and the overall deficit for the upcoming fiscal year will remain at 5.1pc. The cumulative primary surplus of the budget deficit would be 0.3pc of GDP.
The cabinet is likely to set the FBR's tax collection target at Rs9.2tr for the next fiscal year. A Rs7.2tr tax revenue could be collected by the end of current fiscal year ending on June 30. Whereas, the FBR eyes a target of up to Rs8.6tr in the upcoming budget.
Sources further revealed there is a possibility of growth rate to remain at 3.4pc and inflation at 21pc in the next fiscal year, while and a current account deficit of 8 billion dollars may be set for the upcoming fiscal year.
