Govt allocates Rs1.52tr for defense expenditure, Rs3.95tr for debt servicing

ISLAMABAD (PEN) – Government has allocated Rs1,523 billion for defense expenditure and Rs3,950 billion for domestic and external debt servicing for fiscal year 2022-23.

Finance Minister Miftah Ismail has unveiled the federal budget with a total outlay of Rs9.5 trillion in the National Assembly.

Presenting the budgetary proposals, Miftah Ismail said 3950 billion rupees will be spent on debt servicing while 800 billion rupees have been earmarked for the next year’s PSDP.

He said 1523 billion rupees has been set aside for country’s defence and 550 billion rupees for civil administration’s expenditure. Besides, 530 billion rupees have been allocated for pension, while 699 billion rupees for targeted subsidies for the benefit of the poor people.

An amount of 1242 billion rupees has been proposed for grants, which include the grants of Benazir Income Support Programme, Bait-ul-Mal and other departments.

Cash subsidy

Miftah Islamabad said that a family with household income of less than Rs40,000 will be given a transfer of Rs2,000 every month.

Inflation

Ismail said that the government is aware that the common man is struggling with high prices and we are doing are best to bring them down.

“Inflation has been high, but for next year, the target has been set at 11.5%,” he added.

Growth

The minister said the government had to move towards “sustainable growth”, adding that the growth target for next year was set at 5 percent.