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Federal budget with proposed outlay of Rs 3.960 trillion likely to find way to parliament today

June 3, 2014

The federal budget for the fiscal year 2014-15 with proposed outlay amounting to Rs 3.960 trillion will be presented in the parliament today.

Allocation amounting to Rs 1.3 trillion and Rs.7 trillion is likely to be made for the repayment of loan and interest on loan and defence expenses respectively in this budget. Subsidy of Rs 229 billion is likely to be provided to the people.

As per media reports tax revenue target is likely to be set at Rs 2.810 trillion and non tax revenue collection is estimated at Rs 815 billion.

Federation will provide Rs 1.7 trillion to the provinces under National Financial Commission. The provinces will also receive grant to the tune of Rs 35 billion. A sum of Rs 85 billion is likely to be earmarked for income support program.

Government is mulling over raising the salary and pension ranging between 10 to 15 percent. A sum of Rs 225 billion is estimated to be earmarked on account of pension of employees and Rs 295 billion is estimated to be spent on salary.

The development budget of the federation has been proposed at Rs 525 billion. The federation can suffer deficit to the tune of Rs 1.630 trillion in the next budget. However provinces will provide surplus amount of Rs 225 billion to the federation. This will set the overall deficit of the country at Rs 1.495 trillion.

Before tabling the budget in parliament, a meeting of the cabinet will be held under the Prime Minister Mian Nawaz Sharif. Finance Minister will give briefing on the budget in this meeting and later the cabinet will accord approval to the budget.

Following cabinet approval finance minister will present the budget first of all in National Assembly (NA) and then senate.

Formal debate on the budget will kick start after the interval of 4 days in NA.

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Source: Frontier Star (Pakistan)

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