ISLAMABAD: The federal government has decided to allocate Rs3.1 trillion for interest-related payments in the upcoming budget.
According to sources, the government had allocated Rs2.85 trillion in interest payments during the outgoing fiscal year. Sources said that the government is mulling to allocate another Rs1.35 trillion in defence budget which was Rs1.27 trillion during the outgoing year.
In addition, the government is also likely to allocate Rs500 billion for running the affairs of civil government. The government had allocated Rs485 billion during the current year under the same head.
Sources further disclosed that the government is also likely to allocate Rs1.1 trillion under the head of grants.
Moreover, the tax department has proposed that the government allocates Rs5.82 trillion as tax revenue target and around Rs2.09 trillion as non-tax revenue target for the next fiscal year.
According to sources, it has also been decided that the government will allocate Rs660 billion as subsidies in the next fiscal year which was around Rs200 billion more than the outgoing year.