The federal cabinet has approved the budget proposals, including a 6% increase in salaries and a 7% increase in pensions.

According to sources, the federal cabinet has approved the Finance Bill, and BOL News has received a copy of the budget documents.

The federal cabinet approved a 6% salary hike and a 7% pension increase. The total volume of the budget for the current fiscal year will be Rs. 17,573 billion.

Key Highlights of the Federal Budget 2025–26:

Interest Payments on Loans: Rs. 8,207 billion allocated.

Defense Budget: Proposal to allocate Rs. 2,550 billion.

Government Operational Expenses: Proposal to allocate Rs. 971 billion.

Pension Payments: Rs. 1,055 billion proposed.

Subsidies: Rs. 1,186 billion proposed.

Grants: Rs. 1,928 billion proposed.

Development Budget: Rs. 1,000 billion allocated.

Revenue Targets:

FBR Tax Collection Target: Rs. 14,131 billion.

Non-Tax Revenue Target: Rs. 5,167 billion.

Federal Gross Revenue Target: Rs. 19,298 billion.

Provincial Transfers and Deficit:
Transfer to Provinces: Estimated at Rs. 8,206 billion.

Net Federal Revenue: Estimated at Rs. 11,072 billion.

Current Expenditures: Estimated at Rs. 16,286 billion.

Budget Deficit and Economic Estimates:

Budget Deficit: Estimated at Rs. 6,501 billion (5% of GDP).

GDP Size: Estimated at Rs. 129,567 billion.

Primary Surplus: Proposed at 2.4% of GDP.

Let me know if you’d like a summarized or graphical version of this data.