The federal government has proposed a total size of Rs17.1 trillion for the upcoming fiscal year 2026-27 federal budget, with a GDP growth target of 4.1% and an estimated average inflation rate of 8.4%.
According to sources, the government has proposed setting the Federal Board of Revenue (FBR) tax collection target at Rs15.267 trillion for the next fiscal year.
Sources said more than Rs4.7 trillion has been proposed for national development expenditures, while over Rs2.6 trillion is likely to be allocated for defence spending.
Budget documents suggest that around Rs7.8 trillion may be earmarked for debt servicing, while more than Rs1.1 trillion has been proposed for pension payments.
In addition, the government is considering allocating approximately Rs850 billion for subsidies across various sectors. Sources also indicated that the target for petroleum levy collections could be set at Rs1.727 trillion.
For the Public Sector Development Programme (PSDP), an allocation of Rs1.126 trillion has been proposed to support infrastructure and development projects.
Sources said the budget proposals will be presented before the National Assembly after receiving final approval, where official announcements regarding sector-wise allocations and revenue targets will be made.
