The federal government will present its upcoming budget for fiscal year 2026-27 on June 5, proposing a total outlay of Rs17,100 billion with a GDP growth target of 4.1 percent.
The Shahbaz Sharif-led government has set the tax revenue target at Rs15,267 billion, while average inflation for the year is projected at 8.4 percent by Finance Ministry sources.
Interest payments on public debt have been allocated Rs7,824 billion, while defence expenditure has been proposed at Rs2,665 billion in the upcoming budget.
The federal Public Sector Development Programme is set at Rs1,100 billion, while non-tax revenue is projected to reach Rs2,768 billion for the upcoming fiscal year.
Parliamentary and cabinet proceedings
President Asif Ali Zardari approved summoning the National Assembly budget session at 5pm and the Senate session at 6pm on June 5.
The National Economic Council meeting is scheduled for June 3, where the Public Sector Development Programme for FY27 will be formally approved.
The annual Economic Survey for the current fiscal year will be released on June 4, one day ahead of the main parliamentary budget session.
A special federal cabinet meeting will also be convened on June 5 before the National Assembly and Upper House sessions begin that evening.
Salary dispute and public demands
The upcoming budget may include a 7-10 percent increase in salaries and pensions for government employees, according to Finance Ministry sources.
Government employees are demanding up to a 100 percent salary increase, arguing adjustments must fully reflect the inflation they have experienced in recent years.
Employee representatives have announced plans to protest outside the Ministry of Finance on June 4 and in front of Parliament on budget day.
PM Adviser Rana Sanaullah said the budget would provide major relief to the masses, adding Prime Minister Shehbaz Sharif would announce the full package soon.
IMF constraints and fiscal consolidation
The FY27 budget is being prepared in close consultation with the IMF, with Finance Ministry sources saying most key matters have already been settled.
Analysts at Topline Research and JS Global Capital expect a fourth consecutive primary surplus, signalling continued fiscal consolidation over the coming year.
The Federal Board of Revenue is expected to collect approximately Rs15,300 billion in FY27, implying revenue growth of around 14-20 percent over the current year.
The IMF has upgraded FBR benchmarks to quantitative performance criteria, significantly limiting the government’s room for new exemptions or discretionary relief.
