The budget deficit is estimated to be around 6,700 billion rupees, while the defense budget is likely to increase to 2,500 billion rupees. 

NA speaker Ayaz Sadiq will chair the budget session. Approving the schedule for the upcoming sessions of the National Assembly regarding the presentation and discussion of the federal budget 2025-26, a four-point agenda has been issued. During the session, FinMin Aurangzenb will also reveal the revenue and other related documents before the House.

The federal budget’s document has been revealed. According to the document, Rs4223 billions are earmarked for the development projects. For the development projects under the quota of legislators, Rs78.23 billion have been proposed .

As per the document, the government has proposed Rs18.58 billion for federal education and training programmes. For Higher Education Commission, the government has proposed 39.48 billion rupees.

The document suggests that the government has earmarked Rs14.34 billion for National healthcare services. The sources within finance ministry revealed that tax is expected to increase on the withdrawal of fifty thousand of non-filers. According to reports, the upcoming budget is likely to project at Rs17.6 trillion, slightly lower than last year’s Rs18.78 trillion. The Federal Board of Revenue (FBR) has been assigned a tax collection target of Rs14.02 trillion for the upcoming fiscal year.

Non-filers may face stricter measures, including a potential 20% GST rate, travel restrictions abroad, and limitations on buying vehicles and property. Additionally, non-filers might face double the withholding tax rate on cash withdrawals exceeding 50,000 rupees. The government also plans to restrict non-filers  financial transactions through banks.

The federal government is considering an increase of 5 to 7.5% in salary and pension for public sector workers in the upcoming budget.

The document suggests that the centre will provide almost 60 per cent share to the provinces under the federal divisible pool (FDP) devised by the NFC Award. Under the pool, the provinces might secure Rs8 trillion in the coming budget. The Centre will be left with the revenues of Rs6 trillion and non-tax revenues of Rs4 or Rs4.5 trillion.

Total gross revenue receipts has been envisaged at Rs19.298 trillion with the FBR target of Rs14.131 trillion, the non-tax revenue target of Rs5.167 trillion. The transfer to provinces under the NFC Award is envisaged at Rs8.2 trillion so net revenue receipts of the federal government will be left at Rs11.072 trillion.

With other measurements to restrict the deficit under the International Monetary Fund (IMF) programme, the provinces will have to generate revenue surplus to consolidate budget deficit.

Read More: Budget 2025-26: Govt eyes 7.5 per cent increase in salaries, pensions

It is expected that the Rs2.55 trillion will be earmarked for defence in the upcoming budget for 2025-26. The pension bill of the federal government is fixed at Rs1.05 trillion, subsidies are Rs1.186 trillion and grants are Rs1.9 trillion. The markup payments were fixed at Rs8.2 trillion in the next budget, compared to Rs9.7 trillion in the last budget.

In the upcoming budget, the PSDP has been fixed at Rs1 trillion.

Total federal expenditure has been envisaged at Rs17.573 trillion with current expenditure might be standing at Rs16.286 trillion and development expenditure of Rs1 trillion.