ISLAMABAD: The government will announce the fifth annual national budget 2012-13 here on Friday.
All the preparations had been finalized for the presentation of the national budget for the fiscal year 2012-13. Both the Houses of the Parliament have been fully prepared for today’s budget sessions separately.
The total outlay of federal budget for 2012-13 may marginally go beyond Rs 3 trillion, envisaging additional taxation measures of around Rs 140 billion. The tax revenue collection is estimated at Rs 2,338 billion and non tax revenue Rs 737 billion for the next fiscal year.
The government has revised fiscal deficit upward to 4.9 per cent or Rs 1130 billion that may further increase on account of salaries for government employees following a Cabinet decision in this regard. An official said that Rs 85 billion are estimated through administrative and broadening of tax base measures and an equal amount through an increase in rate of Gas Development Surcharge (GDS) in the next fiscal year. The non-tax revenue estimate has been increased from Rs 562 billion to Rs 737 billion with the inclusion of inflows on account of auction of 3-G license and disbursement of the Coalition Support Fund. As much as Rs 545 billion would be earmarked for defence and around Rs 147 billion for federal government service delivery.
The fiscal deficit would be met through domestic borrowing as well through external loans and requesting provinces to create a budget surplus of Rs 112 billion. The government is also considering 25 percent increase in salaries of civil servants; however, final decision to this effect would be taken by the federal cabinet. Provinces will be getting 18 percent more share from the federal taxes, as the centre has estimated transfer of Rs 1,427 billion against the projection of Rs 1,245 billion for the current fiscal year. Debt servicing and debt repayments are estimated at Rs 933 billion in the next fiscal year. The allocation for Public Sector Development Programme (PSDP) has been increased to Rs 360 billion and another Rs 100 billion would be spent through special program outside the PSDP.
The government has reportedly increased allocation for subsidies from earlier projection of Rs 120 billion for the next fiscal year to Rs 150 billion with major portion for power sector. An amount of Rs 20 billion in subsidies has also been earmarked for the fertiliser. The allocation for Benazir Income Support Program (BISP) is estimated to be Rs 60 billion. New initiatives are also likely to be taken for poverty reduction. Grants to provinces and special areas have been set at Rs 60 billion.