The Government of Pakistan has announced the federal budget for the year 2025–26. The total budget of this year is Rs 17.57 trillion. And we know this is 7% less than last year’s budget. This budget focuses on reducing unnecessary spending, collecting more taxes, and following the conditions agreed with the International Monetary Fund (IMF).
|
Category |
Amount (Rs Trillion) |
Change from Last Year |
|
Total Budget Outlay |
17.57 |
7% less |
|
Total Revenue (Gross) |
19.28 |
9% more |
|
Net Federal Revenue |
11.07 |
8% more |
|
Current Expenditures |
16.29 |
6% less |
|
Development & Lending |
1.29 |
12% less |
|
FBR Tax Target |
14.13 |
12% more |
|
Fiscal Deficit Target |
3.9% of GDP |
Reduced from last year |
|
Primary Surplus Target |
2.4% of GDP |
Increased |
In the new budget, the government has increased spending in some important areas to handle national needs such as defence, pensions, and poor families.
|
Sector |
New Allocation |
% Increase |
Reason |
|
Defence |
Rs 2.55 Trillion |
20% more |
Due to the regional security situation |
|
Loan Repayments |
Rs 8.21 Trillion |
9% more |
To pay interest on the national debt |
|
Tax Collection (FBR) |
Rs 14.13 Trillion |
12% more |
To improve the tax system and compliance |
|
Pensions |
Rs 1.05 Trillion |
6% more |
For government and military retirees |
|
Social Support |
Rs 0.55 Trillion |
8% more |
More funds for poor families (BISP etc) |
To save money and reduce the budget deficit, the government has decreased spending in several areas.
|
Sector |
Last Year Allocation |
New Allocation |
% Decrease |
Reason |
|
Development Projects |
Rs 1.15 Trillion |
Rs 1 Trillion |
13% less |
Focus only on important projects |
|
Subsidies |
Rs 1.35 Trillion |
Rs 1.19 Trillion |
12% less |
Less support on electricity and fuel |
|
Government Expenses |
Rs 0.48 Trillion |
Rs 0.43 Trillion |
10% less |
Digital services and cost-cutting |
|
Energy Sector Support |
Rs 0.44 Trillion |
Rs 0.38 Trillion |
14% less |
Push for reforms and private investment |
The 2025–26 budget shows that the government wants to spend carefully. In this budget, the government increases tax income and supports important sectors like defence, loan repayments, and social help programs. At the same time, the government is trying to control the fiscal deficit by cutting down spending in less important areas.
This budget will be successful if:
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