Next fiscal year budget sessions of the National Assembly and Senate have been summoned for June 5 to present the budget
The federal government has proposed a budget size of Rs17.1 trillion for fiscal year 2026–27, with a target economic growth rate of 4.1% and an estimated average inflation rate of 8.4%.
According to sources from the Ministry of Finance, the budget sessions of the National Assembly and Senate have been called for June 5 for the presentation of the upcoming fiscal year budget.
Before this, a special federal cabinet meeting will also be held on June 5, while the National Economic Council meeting is scheduled for June 3, in which approval will be given for the Public Sector Development Programme (PSDP) and the annual development plan for the next fiscal year. The National Economic Survey for the current fiscal year will be released on June 4.
Sources said that the budget size for FY 2026–27 is estimated at Rs17.1 trillion, with a growth target of 4.1% and an average inflation estimate of 8.4%.
The petroleum levy target has been proposed at Rs1,727 billion, while tax revenue target for the next fiscal year is Rs15,267 billion. The federal PSDP is expected to be around Rs1.1 trillion.
Allocations include Rs7,824 billion for debt servicing and Rs2,665 billion for the defence sector. Non-tax revenue target is estimated at Rs2,768 billion.
Sources further said that in the upcoming federal budget, a 7 to 10 percent increase in salaries and pensions of government employees is also likely. However, a dispute has already begun between the government and public employees over the issue before the budget, and the government has indicated relief linked to inflation.
Meanwhile, government employees are demanding up to a 100 percent increase in salaries and pensions. Employee unions have also indicated a protest outside the Ministry of Finance a day before the budget and in front of Parliament on budget day if their charter of demands is not accepted.
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