Islamabad: The federal government is likely to allocate more than 1250 billion rupees in the form of subsidies to provide relief to the backward and middle class in the federal budget of the next financial year 2023-24, while food security in the budget. 55.5 billion rupees subsidy will be allocated. The budget 2023-2024 Pakistan is a crucial economic and financial policy document that outlines the government’s spending and revenue plans for a fiscal year. The upcoming budget for 2023-24 in Pakistan is expected to be announced on 9th June 2023.

Finance Minister Ishaq Dar will present the budget in the National Assembly on June 4 or 5 after preparing the budget in consultation with the coalition parties of the government. However, the budget session of the National Assembly for the federal budget will begin in the first week of June. While the budget will be presented on June 4 or 5.

Federal Budget 2023-24 Pakistan on 9th June 2023

Pakistan’s economy has faced multiple challenges over the years, including high inflation rates, low GDP growth, and a burgeoning debt crisis. The government’s fiscal policies and budgetary allocations play a vital role in addressing these issues. The upcoming Federal Budget 2023-24 is being anticipated as a significant opportunity for the government to take measures to revive the economy.

In the budget, a subsidy of 55.5 billion rupees will be allocated for food security, while a subsidy of 30 billion rupees will also be given for providing cheap items from utility stores, a subsidy of 5 billion rupees is proposed for Ramadan relief. The proposed subsidy includes Rs 10.5 billion for wheat supply to Gilgit-Baltistan, Rs 10 billion to PASCO for wheat supply and Rs 12.20 billion to Mira Ghar Mera Pakistan.

It is also proposed to have a subsidy of Rs 7 billion for loan waiver of flood-affected farmers and Rs 53.6 billion for the petroleum sector, while a subsidy of Rs 30 billion will be given for supplying RLNG to domestic consumers. In the budget of the next financial year, a subsidy of 5 billion rupees will be given for the Pak-Arab pipeline and 11 billion rupees for the price differential claim of PSO. A subsidy of Rs 50 crore has been earmarked for Naya Pakistan Housing and a subsidy of Rs 2 billion is proposed for Islamabad’s metro bus service.

Budget 2023-24 Pakistan salary increase

A 30 percent ad hoc increase in the salaries of government employees from grade 17 to 22 has been approved, while a 35 percent increase in the salaries of employees from grade 1 to 16 has been approved. 17 and a half percent increase in pensions was approved by the federal cabinet.

In this budget, more than three dozen imported luxury goods, including mobile phones, animal feed, cosmetics, confectioneries, chocolates and packaged phones, are likely to be hiked and tax rates on non-filers are likely to be increased. Imported energy saver bulbs, chandeliers and LEDs will be expensive, sales tax on imported electronics items will remain at 25 percent while sales tax on imported make-up items like lipstick, mascara and face powder will remain at 25 percent.

Imported hair colors, dyes, imported pet food, imported branded shoes, imported branded women’s purses, imported shampoos, soaps and lotions will also have a sales tax of 25%. Sales tax rate on glasses, perfumes, imported private arms, branded headphones, iPods, speakers, imported luxury items, imported doors and windows, bath fittings, tiles, sanitary, imported carpets and rugs will remain at 25 percent. Apart from this, sales tax on imported energy drinks, imported juices, vehicles, imported musical instruments, imported biscuits, bakery items, imported chocolate and candy will remain at the rate of 25 percent.

The government has proposed an increase in holding taxes and income tax on all types of assets. All these revenues will be imposed in the budget of 24.2023. The government plans to increase the salaries of government employees from grade 1 to grade 16 by 30 percent and from grade 17 to grade 22 by 20 percent and also increase the pension of retired employees. The government has set a collection target of Rs 9.2 trillion. The government has decided to increase the Petroleum Development Levy (PDL) initially from Rs.50 to Rs.55 or Rs.60 per litre.