According to the International Monetary Funds (IMF), the next federal budget would see an increment of Rs1.15 trillion in federal tax revenue. Additional taxes worth Rs430 billion would also be part of the budget.
The IMF report stated that during the 2022-23 fiscal year, the Federal Board of Revenue (FBR) has to collect Rs7.255 tr. Rs730 billion would be collected from the expected four per cent GDP growth, while Rs430 billion has to be recovered from taxation. The tax-to-revenue of FBR is forecasted to rise to 11.8pc with 0.2pc through general sales tax and 0.4pc from federal excise.
The petroleum levy target has been set at R406bn for the next year due to a surge in oil prices. Collection through non-tax revenue has been raised by Rs200bn to Rs1.58tr, and it is estimated that the upcoming year’s debt servicing would hike by Rs453bn to Rs3.523tr.
Other expenditures like the defence would go up to Rs1.58tr with an increase of Rs186bn, while a deduction of Rs60bn would be done in the Public Sector Development Programme (PSDP). The PSDP would drop from Rs1.87tr to Rs1.81tr.
The current account deficit is projected to rise to 4pc in FY2022 because of increasing commodity rates, receding remittance, and growth in imports.