Introduction:
Salaries and pensions of government employees increase.The coalition government is currently in the process of preparing the budget for the next financial year, 2023-24. According to reliable way, there are plans to increase the salaries of government employees by 20 percent in the upcoming fiscal budget. further a proposal has been made to raise the pension of retired government employees by 15 percent. The final decision on these salary and pension increases will be resolved in the upcoming cabinet meeting, where the allocation of funds will be discussed. Furthermore, an important consideration in the budget is the provision of interim assistance to the Employees Old Age Benefit Fund (EOBI) pensioners, with a decision expected to be made during the same cabinet meeting.
Budget Allocation and Deficit Projections:
The next fiscal year’s budget, judge at 14,600 billion rupees, will see a important portion allocated towards debt and interest payments, amounting to around 7,600 billion rupees. This allocation is expected to account for more than half of the federal budget. However, it is projected that the budget shortfall for the upcoming financial year may increase to 0.78 billion rupees, which is approximately three-fourths higher than the deficit target set for the current fiscal year.
Defense Budget and Primary Deficit:
Sources indicate that the Ministry of Defense has requested an increase in the defense budget, which, when combined with the debt provision, may result in around 64 percent of the federal budget being allocated for these purposes. The federal primary deficit, calculated after accounting for interest payments on the debt, is projected to be 0.3 percent of GDP. However, provincial cash surpluses are expected to contribute to a slightly positive overall primary budget.
Prime Minister’s Directive for Relief:
Prime Minister Shehbaz Sharif has directed the authorities to prioritize providing relief to the common citizens in the upcoming federal budget. He emphasized the need to utilize all available resources to alleviate the financial difficulties faced by the poor and middle class. The Prime Minister has also called for expediting pension reforms and implementing creative methods to establish a pension fund. These measures aim to reduce the burden on the national exchequer while ensuring the welfare of pensioners.
Conclusion: Awaiting the Cabinet’s Decision:
As the coalition government works on finalizing the budget for the next fiscal year, the potential salary increase for government employees, along with a proposed pension raise, holds promise for improved financial conditions. The decision on these matters, as well as the allocation of funds for the interim assistance of EOBI pensioners, will be determined in the cabinet meeting. The government’s commitment to providing relief to the common citizens reflects their dedication to addressing the financial challenges faced by the less privileged and strengthening pension systems for a better future.