Federal cabinet approved the Budget Strategy Paper (BSP) for 2021-22 to 2023-24 and based on that, the budget for the next fiscal year will be presented by the Federal Finance Minister in the assembly on June 4.
As per details, the strategy paper envisages fiscal adjustments of 1.4% of GDP that is equivalent to Rs 734.44 billion.
The GDP growth rate for the next fiscal year (FY) is projected at 4.2% with the economic growth estimated to Rs 52,462 billion.
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Meanwhile, the economic growth rate is envisaged to increase by 4.6% in FY 2022-23 and the volume of the economy will be increased to Rs 58,810 billion.
Besides, the economic growth target for the financial year 2023-24 has been set at 5.1% and efforts will be made to increase the volume to Rs 65,765 billion.
Under the budget strategy of the next three years, the inflation rate is projected to be 8% in the next FY.
However, the rate is expected to be brought down to 6.8% in FY 2022-23 and further to 6.5% in FY 2023-24.
The budget strategy also suggests that efforts will be made to limit the fiscal deficit and to bring it to 6% or 3,154 billion in next FY.
Meanwhile, the budget deficit for FY 2022-23 will be curtailed around 5.2% or Rs 3,050 and 4.4% or 2,882 billion in FY 2023-24.
Under this strategy, efforts will be made in three years to ensure that the current account deficit will continue to be in surplus.
Meanwhile, exports are is projected to be increased to 25.7 billion in the current FY while, imports will be limited to 51.4 billion.
Exports will increase 27.7 billion in FY 2022-23, while imports could reach 55 billion.
Whereas, FY 2023-24, exports will increase to 30.6 billion, while imports are expected to reach 59.5 billion.
The strategy paper also projected that for the next three years, debts will be limited, and in the next fiscal year loans will be limited to 84.3% of the GDP.
It is also estimated that around Rs 3,105 billion will be spent on debt and interest payments in FY 2021-22.
Meanwhile, in FY 2022-23, Rs 3,330 will be earmarked for the repayment of loans and interest.
Whereas, for running federal administration, Rs 510 billion are projected to be set aside in next FY.