The PDM-led government tabled Rs14.460 trillion in the National Assembly on Friday. Aaj News visualized the budget in the brief document for both expenditure and revenue and the resulting pie charts show over half the money going to the payment of debt. This is more than the entire tax and non-tax revenue of the federal government.
Consequently, Pakistan will be borrowing more money from international lenders and by floating T-bills and bonds.
The country will be paying Rs7.303 trillion in interest payments. This is 50.5% of the total budget. The share of interest payment has grown over the years.
Of the remaining money, Rs1.074 billion will be spent on subsidies.
The federal government will use Rs714 billion to cover its expenses including salaries.
The defense budget, which has been increased after three years to Rs1804 billion, has a much smaller share than the interest payments.
Development projects under the Public Sector Development Program (PSDP) get only 6.6% of the total spending at Rs950 billion.
Pensioners will receive Rs761 billion or 5.3% of the budget.
On the other hands, the country has little money to cover its expenditure. The total revenue of the federal government stands at Rs6887 billion or 47.6% of the total expenses.
To meet the expenditure, Pakistan will borrow more money from international lenders. It will also seek grants. The total money it expects to receive from external institutions and countries is Rs2527 billion.
This is still insufficient to cover the expenditure. So, the government will float T-Bills, Sukuk, and other bonds to raise Rs3124 billion and borrow at least Rs1906 from local banks.