Federal government likely to present estimated budget of Rs5.5 trillion

Defence budget likely to be Rs1.5 trillion

ISLAMABAD: The federal government is likely to present budget 2018-19 with a total outlay of Rs5.5 trillion on Friday. According to reliable sources, the total outlay of the budget of next financial is likely to be Rs5.5 trillion as against Rs4.75 trillion for the outgoing year.

According to sources, unlike the impression of a normal increase in the budget, the defence budget for next fiscal year is likely to be Rs1.5 trillion as compared to Rs920 billion plus the supplementary grant of Rs60 billion. The cabinet earlier had approved Rs1.1 trillion for regular defence budget and another Rs100 billion for Armed Forces Development Programme (AFDP) – a sum of Rs1.2 trillion.

While the officials at Federal Board of Revenue (FBR) claim that there could be a drastic reduction in collection of taxes after the introduction of amnesty scheme, the target of tax collection for the next financial year is being fixed at Rs4450 billion, with the estimated 15 per cent increase.

Though it was expected that government may announce a hike in salaries of employees to get political benefit from the 6th budget by announcing over 10 per cent increase, however, a 7.5 per cent increase is expected. However, pensioners will get a 15 per cent jump in the next budget. Besides, the government is going to announce 40 per cent house ceiling and utility allowances ranging Rs2000 to Rs20000 as per grade. The executive allowance for cadre posts would be one salary plus perks.

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The sources claim that the government has fixed the target of foreign debt at $13 billion for FY 2018-19.

To ensure the rise in exports the government has allocated Rs70 billion to Rs80 billion as exports package to the exporters in the next budget.

According to the sources, the cumulative size of the federal Public-Sector Development Programme (PSDP) and provincial Annual Development Programmes (ADPs) would be Rs2.043 trillion, including Rs1.030 trillion federal PSDP and Rs1.013 trillion provincial ADPs.

The core PSDP 2018-19 has been set at Rs825 billion including Rs175 billion of foreign exchange component (FEC) compared to Rs866billion of the current year including FEC of Rs162 billion.

Prime Minister’s Adviser on Finance and Revenue Miftah Ismail said the total PSDP to be funded through the budget would be Rs930 billion.

The Planning Commission has indicated an amount of Rs100 billion for public-private partnership by National Highway Authority (NHA) that would not be part of budget expenditure. According to sources, new projects costing Rs835 billion will be added in CPEC and its supporting projects during 2018-19.

A total number of projects in 2018-19 would be 1235 including 726 ongoing and 509 new schemes.

According to sources the defence and debt serving would consume over 50 per cent of Rs5.5 trillion.

For subsidies, the government has proposed Rs221 billion in the next budget which is up from Rs144 billion revised budget for the outgoing year.

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Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]


  1. IDPs needed rehabilitation,
    All must look at what happened in ERRA.

    It is better, if COAS looks in IDPs affairs himself.

  2. The incumbent government is going to make history by presenting its sixth consecutive federal budget for the year 2018-19, with an estimated outlay of around Rs5 trillion, on Friday.

    It will be a hallmark of the Pakistan Muslim League-Nawaz (PML-N) government to have presented six consecutive budgets during the five years of its democratic tenure from 2013-2018.

    The National Assembly has been summoned to meet on Friday, at 4.30pm for the presentation of the federal budget, an official notification read. Use this site and find out more Studymoose

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