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Budget 2020: Tax revenue target likely to be set at Rs5100b

Budget 2020: Tax revenue target likely to be set at Rs5100b

ISLAMABAD: Tax revenue is expected to increase by 30% in the next financial year while the target for tax revenue is likely to be set at Rs 5100 billion while the proposed defence budget for the next year is likely to be Rs 1402 billion.

According to sources, preparations are underway by federal government for the next budget and tax revenue is expected to increase by 30% in the next financial year, while the tax revenue target is likely to be set at Rs 5100 billion.

Sources said the tax collection system will be improved, the inflation target is likely to be set at 8.4 per cent in FY 2021-22, and a proposal to set a fiscal deficit target of 5.8 per cent is under consideration.

According to sources, the debt rate is planned to be raised to 85% of the GDP and the current account deficit target is likely to be $4.6 billion. A proposal to allocate Rs 1402 billion for the defence budget next year is also under consideration.

Sources said that Rs 495 billion is likely to be allocated for running government affairs and incentives will be provided for agriculture, IT, construction and industrial sectors.