2. In emerging market countries, tax to GDP ratio is around 16 percent but in Pakistan it is 8.6 percent at the moment. We plan to raise this ratio to 9.2 percent of GDP during next financial year. In 2017-18, we left this ratio at 11.1 percent.
- Gross Deficit: Gross deficit that stands at 8.6 percent of GDP during the current fiscal year will be decreased gradually. In the next fiscal year, it will be decreased to 4.9 percent. Likewise, overall primary balance that is currently -2.4 percent of GDP, will be improved
to +0.19 percent during the next fiscal year.
4.Trade deficit: Our Government is taking concrete steps to increase exports and arrest the growth in imports so that trade balance can be improved and price of dollar is corrected automatically. The imports which are expected US$76 billion upto this year, will be decreased to the level of US$ 70 billion during the next fiscal year. Our exports are
US$ 31.3 billion currently, steps will be taken to increase exports to US$ 35 billion during next fiscal year. With these steps, current account balance of -4.1 percent of GDP will be decreased to -2.2 percent during next fiscal year.
- Remittances: During current fiscal year foreign remittances are expected at
US$31.1 billion. It is estimated that remittances will increase to US$ 33.2 billion during the next fiscal year.
- National Debt Servicing: This year total interest payment expenditure will be Rs 3,144 billion. Out of which domestic interest payment is estimated Rs 2,770 billion and external interest payment is estimated at Rs 373 billion. In the next financial year, payments under this head is estimated to reach Rs 3,950 billion out of which Rs 3,439 billion will be domestic and Rs 511 billion will be foreign debt servicing.
- Public Debt: Public dept in 2017-18 was Rs 25,000/- billion. In March 2022 it rose to
Rs 44,365 billion i.e. 72.5% of GDP. We decreased the pace of borrowing by controlling expenditures in the last two months of the current financial year. Under the law Governments borrowing limit is fixed 60% of the GDP.
- Under certain amendments in FRDLA, 2005, experts will be provided to Debt Management Office of Ministry of Finance. For efficient functioning, its mandate and powers are being enhanced so that management of debt can be founded on sound basis. At this moment I want to inform the house briefly that previous government while re- profiling debt, had planned to pay Rs 5,400 billion in 2029 in one go. Imagine, can the domestic money market arrange the entire amount in one go? Never! We are managing this huge payment by efficient fragmentation of this huge amount so that government and domestic market can honour it.
Budget Allocations Mr. Speaker!
- Before giving you the salient features of budgetary allocations, I would like to present an overview of total revenue and expenditures.
- During current financial year, FBR revenue is estimated at Rs 6,000 billion out of which provincial share will be Rs 3,512 billion. Net Federal revenue will be Rs 3,803 billion. Federal Government non tax revenue is expected to be Rs 1,315 billion. Total expenditure will be Rs 9,118 billion. PSDP expenditure will be Rs 550 billion Debt servicing will be
Rs 3,144 billion.
- Defence expenditure will be Rs 1,450 billion. Running of Civil Government expenditure will be Rs 530 billion and subsidies will be Rs 1,515 billion. Grants will be Rs 1,090 billion.
- During next financial year, FBR revenue is estimated at Rs 7,004 billion out of which provincial share will be Rs 4,100 billion. Federal Government will have net revenue of
Rs 4,904 billion whereas non tax revenue will be Rs 2,000 billion
- Federal government total expenditure is estimated at Rs 9,502 billion out of which debt serving will be Rs 3,950 billion and Rs 800 billion Budget is allocated for next year PSDP. There will be Rs 1,523 billion for defence and Rs 550 billion for civil administration expenses. Rupees 530 billion are allocated for pension. Rs 699 billion are allocated for targeted subsidies and Rs 1,242 billion are allocated as grants which include grants for BISP, Bait-ul-Mall and other departments.
Benazir Income Support Programme
- Now I share the steps taken for our poor and deserving sisters and brothers. We have increased Benazir Income Support Programme’s allocation which was Rs 250 billion during 2021-22. In 2022-23, this allocation has been increased to Rs 364 billion. Moreover, an amount of Rs 12 billion is allocated against subsidies for Utility Store Corporation. An additional amount of Rs 5 billion has been allocated as Ramzan Package.
- During the next financial year nine (09) million families will have access to Benazir Kafalat cash transfer programme facility under BISP for which an amount of Rs 266 billion has been allocated.
- Benazir Educational Scholarship Programme will be extended to 10 million students, for this purpose an amount of more than Rs 35 billion has been allocated.
- An additional 10,000 students will be provided Benazir under graduate scholarship, for this purpose an amount of more than Rs 9 billion has been allocated.
- Benazir Nashw-o-Numa (Nutrition) Programme will be extended to all districts at an expenditure of around Rs 21.5 billion.
- In addition, six billion rupees have been allocated for poor and the needy under Pakistan Bait-ul-Mal.