KARACHI: The finance division of the country may propose a revenue collection target of Rs6,000 billion for the year 2021-22, which would be around 22 per cent higher compared to the current fiscal year, market analysts have said.
The total budget outlay size would be around Rs7.7 trillion for the next fiscal year with the expected Gross Domestic Product (GDP) growth of 4 per cent.
According to Khurram Schehzad, the CEO of Alpha Beta Core Securities, “the government may set revenue collection target of Rs 6,000 billion for 2021-22 (over 22% growth vs FY21 target collection, and 33% growth from expected tax collection in FY21).”
“The government expects the GDP to grow by 4 per cent in 2021-22. If one adds an expected inflation of 8 per cent, the total tax growth expected would 12 per cent, while the tax growth target is way beyond this number,” he added.
According to the CEO, the government aims to increase tax collection by Rs 1,400 billion for the fiscal year 2021-22 while it expects non-tax collection to be set at Rs 1,420 billion.
He further claimed that the government may set the public sector spending budget of Rs630 billion next year. The government may also set a target of Rs 600 billion collection from petroleum levy. If the government increases the expected petroleum levy, it would be doubled next year, he claimed.
The government is likely to set a defence allocation of Rs 1,444 billion in the next fiscal budget, and set a target of debt and principle payment of Rs3,100 billion for the next year.