The government is set to finalise the outlay for the federal budget 2020-21 on June 8 in a meeting of the National Economic Council (ECC) chaired by the Prime Minister Imran Khan.
The finalised outlay is expected to be fine tuned on Tuesday in a meeting of the federal cabinet. Additionally, the National Economic Council (NEC) is set to finalise the outlay of national development budget and Gross Domestic Product (GDP) growth targets for the next financial year in consultation with provincial governments on Wednesday, June 10.
As per reports, the government is expected to increase allocation for the up-gradation of hospitals and provision of all kinds of instruments and increase allocation to the Ehsaas Programme in a bid to to effectively fight the Covid-19 pandemic and bring relief to economically vulnerable segments of the society.
The current loss to Gross Domestic Product (GDP) is estimated to be Rs2.6 trillion which will be deliberated further in the meeting to be held tomorrow that will also brainstorm measures to minimize losses to the economy.
According to reports the Federal Board of Revenue (FBR) faces a shortfall in tax collection due to the economic slump caused by COVID-19. FBR’s overall tax collection for the fiscal year ending June 30, 2020 is estimated at Rs3,908 billion compared to its target of Rs5,500 billion.
Additionally, the IMF has asked the government to eradicate additional grants as it leads to distortions in the budgeted amounts.
Earlier, the Annual Plan Coordination Committee (APCC) had recommended the national development budget at Rs1,319 billion with federal Public Sector Development Programme (PSPD) at Rs536 billion and provincial development outlay at Rs783 billion.