In the programme of IMF- International Monetary Fund held on Tuesday, the Federal Cabinet approved the BSP- Budget Strategy Paper for the next fiscal year of FY22. It is forecasted significantly as the higher contribution will be from provinces to the finance fiscal deficit.
However, it is freeze for the major expenditures like pension, defence and the running of the civil government in order to ensure the enough funding for higher payments of interest.
Moreover, the BSP also targets the economic growth rate of 4.2% for 2022 that is about 8% rate of inflation and the budget deficit at 6% of the GDP along with 84.3% of the public debt to the GDP ratio.
The Gross federal revenues are also anticipated to go up by over 25% that is about Rs. 7.99 trillion as the government of Pakistan pushes forward a whole series of tax adjustments like widening of the GST and also the income tax net next to the continually banking on non-tax revenues such as petroleum levy and others.
