Govt Expected to Unveil Rs. 17.5 Trillion FY26 Budget

The federal government is set to unveil the national budget for the fiscal year 2025-26 (FY26), with an estimated total outlay of Rs. 17,500 billion, marking a reduction of Rs. 1,300 billion compared to the previous year. The Federal Board of Revenue (FBR) will likely be assigned a revenue collection target of Rs. 14,100 billion for FY26. The government expects to allocate approximately Rs. 9,000 billion for interest payments alone during FY26. Of this, Rs. 7,700 billion will be used to service domestic debt, while Rs. 1,300 billion will go toward external debt servicing. The estimates for defense spending, development expenditure, and debt repayments have already been finalized. Moreover, subsidies worth Rs. 1,400 billion are expected to be allocated. Federal grants expenditure is estimated at Rs. 1,620 billion. The government expects receiving a Rs. 1,200 billion surplus from provincial administrations.