Federal & Provincial budget targets for current financial year 2023-24 revised as per understanding reached b/w Pakistan & IMF

ISLAMABAD, Jan 24 (SABAH): The Federal and Provincial budget targets for the current financial year 2023-24 have been revised as per understanding reached between Pakistan and the International Monetary Fund (IMF). The FBR tax collection target has been maintained at the level of Rs.9415 billion. However, the national target of non-tax revenue was cut by Rs.97 billion, similarly, the expenditure of the Federation of Pakistan was reduced by Rs.72 billion.

Federal Development Program (PSDP) was reduced by Rs.61 billion and the development program of the four provinces was reduced by Rs.115 billion. Some Rs.174 billion have been added to the budget for payment of interest on foreign debt.

The details of the revision of the budget of the Federation of Pakistan between Pakistan and the IMF, which have been made part of the document on macroeconomic and financial policies agreed between Pakistan and the IMF. According to the revised estimates, FBR The target of tax collections was maintained at Rs.9415 billion, despite this, the targets of individual taxes were revised, the target of income tax (direct taxes) was increased from Rs.3884 billion rupees to Rs.4216 billion, this target was increased by Rs.332 billion. The target of federal excise duty was reduced from Rs.600 billion to Rs.571 billion and this target was reduced by Rs.29 billion, the target of general sales tax was increased from Rs.3607 billion to Rs.3425 billion and this target was reduced by Rs.182 billion.

The target of customs duty was reduced from Rs.1324 billion to Rs.1204 billion, this target has been reduced by Rs.120 billion rupees, The target of petroleum surcharge has been increased from Rs.869 billion to Rs.918 billion, this target has been increased by Rs.49 billion. The target of gas surcharge has been reduced from Rs.69 billion to Rs.66 billion, this target has been increased by Rs.3 billion. The target of gas infrastructure development cess was reduced from Rs.40 billion to Rs.30 billion and this target was reduced by Rs.10 billion rupees. The target of tax collection of the four provinces was maintained at the level of Rs.868 billion.

The government has also revised the non-tax revenue targets, the non-tax revenue target has been reduced from Rs.2116 billion to Rs.2019 billion rupees and this target has been reduced by Rs.97 billion. The non-tax revenue target of the federal government has been reduced from Rs.1908 billion rupees to Rs.1811 billion and was reduced Rs.97 billion. Target of provincial non-tax revenue was maintained at Rs.208 billion.

However, the government also revised the expenditure targets, the total expenditure was reduced from Rs. 21,590 billion to Rs.21,518 billion, were reduced by 72 billion rupees. Non-development expenditure were reduced from Rs.19,236 billion to Rs.19,146 billion with a reduction of Rs.90 billion rupees. The expenditures of the federal government have been reduced from Rs.14,641 billion to Rs.14,555 billion with a reduction of Rs.86 billion. Interest payment on national debt was reduced from Rs.7753 billion to Rs.7489 billion, which were reduced by  Rs.264 billion. The interest payment on foreign debt were increased from Rs.822 billion to Rs.996 billion with an increase of Rs.174 billion.

The expenditures of the four provinces have been reduced from Rs.4595 billion to Rs.4591 billion with a reduction of Rs.4 billion.

The size of the federal development program (PSDP) has been reduced from Rs.843 billion to 784 billion rupees and cut of Rs.61 billion have been placed on development budget. The size of the development program of all four provinces was reduced from Rs.1440 billion to Rs.1325 billion rupees indicating a reduction of Rs.115 billion, thus it was decided to reduce the federal budget deficit from Rs.8164 billion to Rs.8152 billion for ongoing fiscal year 2023-24, ending on June 30, 2034.