Pakistan’s National Assembly Approves Rs593.64 Billion Supplementary Budget for FY24-25

The National Assembly of Pakistan approved a supplementary budget of Rs593.64 billion for the fiscal year 2024-2025 (FY24-25) and Rs475.05 billion for the outgoing fiscal year (FY25-26), according to official records. Finance Minister Muhammad Aurangzeb submitted the necessary documents under Article 83 of the Constitution, which mandates parliamentary approval for federal spending, as reported by Dawn.

What Are the Key Expenditures in the Supplementary Budget?

The supplementary grants for FY24-25 include Rs430.10 billion for the Power Division, Rs22.84 billion for defense services, and Rs37.89 billion for miscellaneous expenditure, according to the approved documents. Additional allocations include Rs5.6 billion for the Finance Division’s development expenditure and Rs2.69 billion for the Federal Board of Revenue (FBR). The total supplementary grants for FY24-25 amount to Rs593.64 billion, with charged expenditures reaching Rs2,644.48 billion, including Rs2,603.86 billion for repayment of domestic debt.

How Does the Budget Approval Process Work?

Under the Constitution, the government must secure parliamentary approval for the federal budget before spending. However, the government frequently seeks retrospective approval for funds already spent, leaving parliament with limited options to regularize these expenditures. The National Assembly’s X account confirmed that Aurangzeb presented the Supplementary Authorised Expenditure 2024-2025 and 2025-2026 during the session, as noted by Dawn.

What Are the Major Allocations for FY25-26?

For FY25-26, the approved supplementary grants include Rs127.41 billion for grants, subsidies, and miscellaneous expenditure, Rs105.50 billion for the Power Division, and Rs57.18 billion for federal education and professional training. Other key allocations include Rs29.66 billion for National Health Services and Rs22.35 billion for poverty alleviation and social safety. The total supplementary grants for FY25-26 amount to Rs475.05 billion, with charged expenditures reaching Rs12,645.5 billion, primarily for repayment of domestic debt.

Why Is This Budget Significant for Pakistan’s Economy?

The approval of these supplementary budgets follows ongoing fiscal challenges, including high debt servicing costs and inflation pressures. The Rs2,603.86 billion allocated for repayment of domestic debt in FY24-25 underscores the government’s reliance on borrowing to manage fiscal deficits. Analysts note that such large-scale expenditures highlight the need for structural reforms to ensure long-term economic stability, as discussed in Reuters coverage of Pakistan’s fiscal policies.