ISLAMABAD: The federal government is expected to increase the defense budget by 18 percent in the upcoming financial year.
The announcement will be made in the federal budget for 2025-26, which is scheduled to be presented in the National Assembly tomorrow.
The total size of the budget is expected to be Rs17,600 billion. The government has estimated total revenue at Rs19,400 billion, with a tax collection target of Rs14,130 billion.
An amount of Rs6,200 billion has been allocated for debt servicing, which also matches the projected budget deficit.
The government is proposing a 10% increase in the salaries of government employees and a 5 to 7.5% increase in pensions for retired workers.
In addition to defense, allocations for other key sectors include Rs13.58 billion for education, Rs14.3 billion for health, and Rs16.2 billion for the digital economy and IT sector.
