The federal outlay is likely to be Rs 3.475 trillion for 2013-14 with expected 6.2 percent (Rs 1.6 trillion) fiscal deficit, it is learnt. Sources told Business Recorder that the Federal Board of Revenue (FBR) tax collection is estimated at Rs 2.475 trillion and Rs 150 billion is likely to be earmarked for power sector subsides for the next fiscal year.
The allocation for defence is projected at Rs 627 billion and interest payment Rs 1,150 billion. Allocation of pension is expected at Rs 172 billion for the next fiscal year and the government may increase the salary of employees by 10 per cent. An amount of Rs 540 billion has been earmarked for Public Sector Development Programme, 50 percent higher over the current year allocation. The allocation of Rs 278 billion for federal government services is likely to face reduction and the last-hour discussion have been going on in the Finance Ministry to curtail the administrative expenditure as policy of the government to rationalise expenditure.
The financing of budget deficit would be through domestic sources of bank and non-bank and for this purpose the bank borrowing is expected to be around Rs 892 billion and through non-bank around Rs 486 billion. An amount of Rs 81 billion is also expected through privatisation proceeds for financing of budget deficit.
The government has also estimated that an amount slightly over Rs 60 billion on account of loans and advances for financing of deficit besides over Rs 41 billion from external resources. The GDP growth for the next fiscal year is projected at 4.4 percent with a contribution of 3.8 percent by agriculture sector, 4.5 percent by manufacturing and 4.6 percent by services sector. The current account deficit is estimated at 1.1 percent of the GDP following a gap in trade account.
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