The government of Pakistan has announced the federal budget for the year 2025–26. The total budget is Rs 17.57 trillion, which is 7% less than last year’s budget. This budget has been prepared under the guidance of the IMF to control spending, increase tax collection, and keep the economy stable.
Budget Summary Table
Item | Amount (Rs Trillion) | Change Compared to Last Year |
Total Budget | 17.57 | 7% less |
Total Revenue | 19.28 | 9% more |
Net Federal Revenue | 11.07 | 8% more |
Current Expenses | 16.29 | 6% less |
Development & Lending | 1.29 | 12% less |
FBR Tax Target | 14.13 | 12% more |
Fiscal Deficit | 3.9% of GDP | Lower than last year |
Primary Surplus | 2.4% of GDP | Better than before |
Areas Where the Budget Increased
Some sectors got more money this year to deal with current issues like national security and rising costs.
Sector | New Amount | Increase | Reason |
Defence | Rs 2.55 Trillion | 20% more | Due to the security situation |
Debt Payments | Rs 8.21 Trillion | 9% more | To pay back loans |
FBR Tax Collection | Rs 14.13 Trillion | 12% more | To improve the tax system |
Pensions | Rs 1.05 Trillion | 6% more | Due to inflation and military pensions |
Social Support | Rs 0.55 Trillion | 8% more | More funds for poor families (e.g., BISP) |
Areas Where the Budget Reduced
To reduce expenses, the government cut the budget in some areas.
Sector | Old Amount | New Amount | Decrease | Reason |
Development Projects | Rs 1.15 Trillion | Rs 1 Trillion | 13% less | Only important projects will continue |
Subsidies (Power, Fuel) | Rs 1.35 Trillion | Rs 1.19 Trillion | 12% less | To reduce unnecessary support |
Government Expenses | Rs 0.48 Trillion | Rs 0.43 Trillion | 10% less | Austerity and digital savings |
Energy Sector Help | Rs 0.44 Trillion | Rs 0.38 Trillion | 14% less | Moving to private sector and reforms |
Final Words
This year’s budget is smaller than last year, but the government has spent more on defence, loans, and support for poor families. At the same time, it has reduced spending on some projects and government departments to control the deficit and follow IMF rules.
The success of this budget depends on:
- Better tax collection,
- Careful use of money,
- Peace and stability, and
- Controlling inflation
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