Rs28.8T Expenditure Bill Tabled for FY25-26

Islamabad, June 24, 2025 — The federal government has tabled a Rs28.8 trillion compulsory expenditure bill for FY 2025-26, a 17% cut from the current year, driven by lower interest rates, though key state organs see significant budget hikes, as Finance Minister Muhammad Aurangzeb presented it to the National Assembly on Monday. These “charged expenditures”, untouchable by Assembly vote under the Constitution, fund debt servicing and operating costs for the Presidency, Supreme Court, National Assembly, Senate, and Federal Tax Ombudsman.

The bill allocates Rs27.8 trillion for debt repayment and interest, down 17.5%, thanks to interest rates dropping from 22% to 11% and a shift to long-term debt, easing domestic repayments. Yet, foreign debt servicing—especially short-term loans—has soared 11% to Rs5.4 trillion, while domestic debt servicing dips 17% to Rs8.2 trillion. Interest payments will gulp 47% of the Rs17.6 trillion total budget, raising fiscal strain alarms.

State organ budgets surge: the Presidency gets Rs2.7 billion (up 17%), the Supreme Court Rs6.6 billion (up 51%), the Senate Rs6.2 billion (up 19%), the National Assembly Rs6.9 billion (down Rs400 million), the Islamabad High Court Rs2.2 billion (up 15%), and the Election Commission Rs9.9 billion. Critics warn of a widening gap between state spending and economic challenges, fueling reliance on external support.

Web context highlights Pakistan’s debt burden (e.g., $130 billion, web ID: 0), while posts found on X show public unease—some question priority spending, others decry foreign debt. Critically, the narrative of “fiscal discipline” may obscure structural deficits—web data points to revenue shortfalls, and X sentiment suggests distrust in sustainable management, hinting at ongoing vulnerability.