ISLAMABAD – The Ministry of Finance has recommended 20 percent increase in salaries of the government employees, it emerged on Tuesday.
Reports said the Finance Minister Ishaq Dar has deferred the matter, saying the federal cabinet would take a decision in this regard. The government is planning to present budget with total outlay of Rs14,600 billion in June amid economic crisis in the country.
The budget deficit – gap between expenses and income – could be Rs7,800 billion, which would be about three-fourths higher than the federal deficit target for the current fiscal year.
For fiscal year 2023-24, budget deficit is estimated at around 7.4% of the gross domestic product (GDP), reports added.
After adding the demanded defence budget by the Ministry of Defence, the federal government may spend around 64% of the budget on debt servicing and defence, Express Tribune quoted sources as saying.
