ISLAMABAD (Kashmir English): Finance Minister Senator Muhammad Aurangzeb will present the federal budget for the Fiscal Year 2026-27, worth over Rs17.5 trillion, tomorrow.
Adviser to Finance Minister Khurram Schehzad said the FY2026-27 federal budget will be presented in the National Assembly on June 12 (Friday) by Finance Minister Muhammad Aurangzeb.
As per sources, the tax revenue target is expected to be Rs 15,267 billion, while the non-tax revenue target is proposed to be Rs 2,767 billion.
The economic growth target is likely to be fixed at 4 percent, with inflation projected at 8.2 percent.
In the fiscal year 2026-27, the government plans to collect Rs1.727 trillion through the petroleum levy during the next fiscal year.
Meanwhile, debt servicing is expected to remain the largest expenditure item, with Rs7.824 trillion proposed for interest payments. Defense spending is expected to be allocated nearly Rs3 trillion.
According to estimates, exports are targeted at $32.8 billion, while imports are projected at $70 billion, resulting in a trade deficit exceeding $37 billion.
Sector-wise growth targets include 3.8 percent for agriculture, 4 percent for industry, 4.5 percent for large-scale manufacturing, and 4.2 percent for the services sector.
The government has also set a target of creating two million new jobs, including 1.1 million in services, 500,000 in industry, and 400,000 in agriculture.
The National Economic Council has approved a national development outlay of Rs3.669 trillion, including a federal Public Sector Development Programme (PSDP) of Rs1 trillion. Development allocations for the four provinces have been estimated at Rs2.218 trillion.
Sources further suggest that tax relief measures for the salaried class are under consideration, with proposals worth approximately Rs50 billion. The number of income tax slabs may increase from six to eight, while reductions in tax rates for certain income groups are also being discussed.
A proposal is under consideration to reduce the income tax rate from 25 percent to 20 percent for individuals earning up to Rs267,000 per month, potentially benefiting around 400,000 salaried employees.
The budget is also expected to include revisions to tax rates for higher income brackets, while maintaining a maximum tax rate of 35 percent for top earners. The government is reportedly considering abolishing the surcharge currently imposed on individuals earning more than Rs 10 million annually.
