Salient features Budget  outlay Rs5,932.5bn from Rs5,103.88bn last year ─ a 10.6% increase
The budget hikes current expenditures and cuts development
Bank borrowing estimated at Rs1,015.3bn, roughly 2.6 times higher than last year
Defence budget experienced a 19.5pc increase from last year

The PML-N government’s newly appointed Finance Minister Miftah Ismail presented a sixth full-term budget in the National Assembly on April 27 saying the government cannot interrupt the 5.8 per cent GDP growth.

The total budgeted outlay for the year 2018-19 was set at Rs5,932.5bn from Rs5,103.88bn last year ─ a 10.6pc increase over revised figure, and a 16.2pc increase over last year’s budgeted figure.

The revised outlay for 17-18 came to Rs5,361bn.The target GDP growth rate for the upcoming fiscal year has been set at 6.2pc against FY17-18’s target of 6pc.The total tax target is Rs4,888.6bn, of which the FBR taxes comprise Rs4,435bn.

“This target will be achieved through improved tax steps and improved tax administration. The tax base is being expanded and the per cent of tax is being reduced,” the finance minister said.

The non-tax revenue target has been set at Rs1,246bn, according to a copy of the budget 18-19.The provincial share in tax revenue will be increased from Rs2,316bn to Rs2,590bn, Ismail added.

As expected, the budget hikes current expenditures and cuts development. This is the first PML-N budget to do so. The hike in current expenditures is roughly 20pc, while development expenditure has been cut 20pc.

The share of current and development expenditure respectively in the total budgetary outlay is 80.6pc and 19.4pc. Current expenditure has been estimated at Rs4,780.4bn, while development expenditure is set at Rs1,152.1bn.

Development expenditure outside the PSDP has been estimated at Rs180.2bn for FY18-19, which is 18.4pc higher than FY17-18 estimates.

Under the PSDP, Rs47bn has been allocated to the HEC, Rs37bn for basic health and Rs10bn for the PM’s Youth Programme.

The defence budget has been set at Rs1,100bn from a revised budget estimate of Rs999bn in the previous year ─ 18.5pc of the total budgeted outlay, while the PSDP has been slashed to Rs800bn for FY18-19.

Karachi package.Government announced a Rs25bn special package for development in Karachi.A large-scale desalination plant will be set up in Karachi to end the city’s water woes, Ismail said.Rs5bn will be allocated for the construction of roads, fire brigades and bridges in the coming fiscal year. Rs8bn will be set aside for expansion of the Expo Centre, he added.