Govt to present Rs10 trillion budget for FY2022-23, deficit will be Rs500 billion

ISLAMABAD (92 News) - The government will present the Rs10 trillion budget for the FY2022-23 having the deficit of Rs500 billion.

According to the data available with 92 News, the economic growth rate is likely to remain at 4% in order to keep the deficit low. An amount of Rs300 billion will be allocated for paying off the interest on loans and the emergency expenditures.

Moreover, the government has decided to enhance direct tax on income by Rs400 billion and a target of Rs2,560 billion will be set for it. The target of Customs, Federal Excise and Levy will be Rs4,700 billion.

The tax rate for non-filers are likely to be enhanced and super tax will be imposed on the people having a big income. However, a fixed tax can be imposed on the retailers. It has been proposed to increase the tax on tobacco and soft drinks. It has also been proposed to increase the tax on the profit from banks from 25 percent to 35 percent.

The budget data will be presented to the cabinet for the final approval at any time.

The Finance Ministry officials said that the objective of keeping the deficit low is to control expenditures and inflation. "The objective is to maintain the inflation at 12 percent and restrict the federal expenditures to Rs700 billion.