ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb is set to present the federal budget 2025–26 today in the National Assembly. The session will begin at 5 PM under the chairmanship of Speaker Ayaz Sadiq.
The session will open with the recitation of the Holy Quran, Hadith, a Naat, and the national anthem. After that, the finance minister will take the floor. He will present the budget along with the Finance Bill 2025 and related documents.
The upcoming federal budget is projected at Rs17.6 trillion. This amount is slightly lower than last year’s budget of Rs18.78 trillion. The Federal Board of Revenue (FBR) has been given a tax target of Rs14.02 trillion. Revised estimates for the outgoing year stand at Rs12.33 trillion. However, meeting this revised target remains a challenge.
Key Figures and Proposals
Four proposals for pay and pension increases have been prepared. These range between 5% and 12.5%. The government wants to keep this increase between 7.5% and 10%. A disparity allowance of up to 30% is expected for employees in grade 1 to 16.
Non-tax revenues may range from Rs4 to Rs4.5 trillion. After transferring nearly 60% of the revenue to provinces, the Centre will be left with Rs6 trillion. Combined with non-tax revenues, this will reach about Rs10.5 trillion.
The government may face a budget deficit of Rs6 to Rs7 trillion. This will require major financing. Under the IMF programme, provinces must show a revenue surplus to help control the overall fiscal deficit.
The defence budget is expected at Rs2.55 trillion. Markup payments are estimated at Rs8.2 trillion, down from Rs9.7 trillion last year. The pension bill stands at Rs1.05 trillion. Subsidies will cost Rs1.186 trillion, and grants are estimated at Rs1.9 trillion.
Budget Timeline and Debate Plan
The total federal expenditure is expected to be Rs17.573 trillion. Out of this, Rs16.286 trillion will go to current expenses. Development projects under the Public Sector Development Programme (PSDP) will receive Rs1 trillion.
Speaker Ayaz Sadiq has announced the full schedule of the budget debate. The National Assembly will remain in recess on June 11 and 12. The general debate on the budget will begin on June 13 and continue until June 21. There will be no session on June 22.
On June 23, the Assembly will discuss charged expenditures. On June 24 and 25, voting on Demands for Grants and Cut Motions will take place. The Finance Bill 2025 will be voted on June 26. Supplementary grants and related matters will be taken up on June 27.
All parliamentary parties will be given time to speak during the debate. Speaker Sadiq has assured equal opportunity for every member.
