Govt unveils Rs9.502 trillion budget for 2022-23

ISLAMABAD (APP) – Amid a severe financial crisis, the two-month-old incumbent coalition federal government on Friday presented a progressive budget, with a total outlay of Rs9.502 trillion, to stabilize the ailing economy and lessen the sufferings of the society’s downtrodden segments.

The budget specially focused on fiscal consolidation to cut budget deficit prioritizing practical austerity measures along with strategies to enhance tax to GDP ratio, reduce gross debt, slice trade and current account deficits and promote sustainable economic growth.

Announcing the budget, Minister for Finance and Revenue Miftah Ismail said that the budget was being presented at a critical juncture after the previous government caused huge damages to the economy during its three-and-nine-month tenure.

He said that the government had introduced drastic measures in the federal budget to uplift economy and put it on sustainable growth path.

Unveiling the budget, the finance minister said that out of total Rs9.502 trillion budget; an amount of Rs2,950 billion would be spent on debt servicing while Rs800 billion had been specified for the Public Sector Development Programme (PSDP 2022-23).

He said an amount of Rs1,523 billion had been proposed for the Defence expenditures, Rs550 billion for civil administration and Rs530 billion for pensions. "Similarly, an amount of Rs699 billion has been proposed for providing targeted subsidies to the poor," he declared.

Miftah Ismael on Friday said austerity was the foremost priority of the government and concrete measures were being taken in this regard.

He said that steps were being taken to reduce the government’s expenditures. "The government is not doing lip-service on the austerity as the petrol quota of government officials and cabinet members had been reduced by 40 percent, while official foreign trips, procurement of luxury items and vehicles for the government department were banned," he added.

Federal Budget 2022-23 at a glance

Breakup of resources and expenditures:-

Total Resources (I to V): Rs. In Billion: 9,502

(FBR) – Federal Consolidated Fund: 7,004

Non-Tax Revenue: 2,000

a) Gross Revenue Receipts: 9,004

b) Less Provincial Share: 4,100

I.Net Revenue Receipts (a-b): 4,904

II. Non-Bank Borrowing (NSSs & Others) – Public Account: 1,996

III. Net External Receipts – Fed. Consolidated Fund: 533

IV. Estimated Provincial Surplus: 800

V. Bank Borrowing (T-Bills, PIBs, Sukuk) – Fed. Consolidated Fund: 1,172

VI. Privatization Proceeds – Fed. Consolidated Fund: 96

Total Expenditures: Rs. In Billion: 9,502

A. Current: 8,694

Interest Payments: 3,950

Pension: 530

Defence Affairs & Services: 1523

Grants and Transfers to Provinces & Others: 1,242

Subsidies: 699

Running of Civil Govt: 550

Provision for Disaster / Emergency Covid: 100

Provision forPay & Pension: 100

B. Development: 808

Federal PSDP: 727

Net Lending: 81