ISLAMABAD: The Finance Ministry is reportedly considering Federal Board of Revenue (FBR) collection target of Rs 2,475 billion in 2013-14. In the budget strategy paper released and approved by the Raja Ashraf-led cabinet in the first quarter of the current year, the FBR collection target was proposed at Rs 2,675 billion based on a revised budgetary target of Rs 2,193 billion for the current year.
As the FBR revenue collection target for 2012-13 has now been further revised downward to Rs 2,050 billion, the Finance Ministry has reportedly proposed a projection of Rs 2,485 billion revenue collection to the government-elect for the next fiscal year.
Sources further stated that Rs 288 billion subsidies for next year have been proposed against Rs 364 billion projected in the budget strategy paper.
Federal government services and interest payments may witness a slight rise from the budget strategy paper (2013-16) due to significantly higher than estimated borrowing by the government through short tem instruments to finance the fiscal deficit.
An official of the Finance Ministry said that the salary expenditure is expected to increase by Rs3.5 billion for next fiscal year on account of grant of premature increment on upgradation even if the government decides not to raise federal government employees' salary. The regulation wing of the Ministry on Finance Sunday issued a notification for grant of premature increment on upgradation, which would be implemented from July 1, 2013 with effect from January 1, 2002.
Sources in the Planning Commission said the allocation for Public Sector Development Programme (PSDP) would remain at the suggested Rs450 billion for next fiscal year with an expected change in priority areas given that the government-elect has reportedly conveyed to the Finance Ministry that their priority would be energy related and infrastructure development projects in the next fiscal year.
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