ISLAMABAD: The government has pointed to a trillion rupees (15%) reduction in federal development budget, a big increase in federal bureaucracy spending and a reshuffle of funds transferred to provinces to overcome financial difficulties this year. ۔
In a briefing given to the members of the National Assembly's Standing Committee on Finance by Secretary Finance Naveed Kamran Baloch, the government said that the government is going to take a series of measures this month so that the International Monetary Fund (IMF) will take over in April. The second review is to be completed for a $ 45 million instalment.
As part of the next fiscal year's budget strategy, Naveed Kamran highlighted some of the deficiencies in the federal budget, including increased pension costs, debt payment burden, unstable federal funds transfers and subsidies and Support programs include allocating unrealistic funds.
Talking to media representatives, the Chairman of the Standing Committee said that the budget strategy would be finalized and submitted to the Cabinet for approval and shortly thereafter it would be forwarded to the Senate and National Assembly Standing Committees for Finance. Will be presented at a joint meeting.
He said that the committee was informed that the revenue target of Rs 55 trillion has been reduced to Rs 52 trillion 38 billion and the government is talking to the IMF for further reduction.
He said the situation for non-tax revenue was better this year and 10 trillion rupees were collected during the eight months against the target of 11 trillion.
According to the Standing Committee of the Chairman, the meeting was informed that the Public Sector Development Program (PSDP) budget target would be Rs. 6 trillion versus Rs. 7 trillion.
He said that Secretary Finance has indicated that during the current financial year, efforts will be made to raise funds from Pakistani community and SKO bonds abroad.
The committee demanded that the benefit of reduction of oil prices in the international market should be made available to the public.
It was informed at the meeting that the government is fully implementing three principles of the IMF program, including borrowing from the central bank, not breaking the limits of sovereign guarantees and not giving any subsidiary grants present.
In addition, government loans and their repayment plans will be temporarily converted into short-term payments and mainstream in the next budget.
The Secretary-Finance emphasized that the provinces would have to consider leaving the habit of relying on new ways of generating revenue in the next fiscal year.
The secretary told the committee that the government would have to remove the 'discrepancies' in the salaries and privileges of federal and provincial officers of grades 17 through 22 because the federal bureaucracy is clearly at a loss right now.