Federal Budget 2026-27
MAB's interactive reading of the Federal Budget 2026-27 — practitioner commentary before each table, a side table of contents, and a downloadable branded brief for your team.
Budget Assistant
Ask anything about Federal Budget 2026-27 — concise answers in a few lines.
Budget 2026-27 at a Glance
Summarized overview of total federal resources, net receipts, and targeted expenditures.
The budget-at-a-glance view sets the full fiscal envelope for FY 2026-27. It shows how the federation mobilises resources, how much is transferred to provinces under the NFC award, and how the remaining balance is allocated across current and development spending. For any corporate liquidity forecast or sovereign-risk assessment, this is the anchor table.
Compared with the revised FY 2025-26 outturn, total federal expenditure rises from Rs 17,573 billion to Rs 18,771 billion. The largest current blocks in 2026-27 are debt servicing (Rs 8,054 bn), other current charges (Rs 5,548 bn), defence (Rs 3,000 bn), and pensions (Rs 1,169 bn). Development expenditure is budgeted at Rs 1,000 billion, lower than the Rs 1,287 billion revised for the outgoing year, signalling tighter capital spending despite a larger overall budget.
- Gross revenue receipts: Rs 20,600 bn (tax Rs 15,264 bn + non-tax Rs 5,336 bn).
- Provincial share in federal taxes: Rs 8,848 bn; net federal receipts: Rs 11,751 bn.
- Total expenditure: Rs 18,771 bn; federal deficit financing: Rs 7,020 bn.
- Debt servicing and defence together absorb over half of current expenditure.
- Privatisation proceeds budgeted at Rs 161 bn support the resource side.
| Classification | Budget Estimates (2026-27) |
|---|---|
| I. RESOURCES | |
| a) Gross Revenue Receipts (FBR + Non-Tax) | 20,600 |
| b) Less Provincial Share (NFC Transfers) | (8,848) |
| c) Net Revenue Receipts retained by Federal | 11,751 |
| II. Net External Receipts | 813 |
| III. Net Domestic Financing (Bank + Non-Bank) | 6,046 |
| i) Bank Borrowing | 5,772 |
| ii) Non-Bank Borrowing (NSS & Public Account) | 274 |
| IV. Privatisation Proceeds | 161 |
| TOTAL FEDERAL RESOURCES (Net) | 18,771 |
| II. EXPENDITURES | |
| A. Current Expenditures | 17,495 |
| Interest Payments | 8,054 |
| Pension | 1,169 |
| Defence Affairs & Services | 3,000 |
| Running of Civil Govt | 1,091 |
| Grants and Transfers | 2,680 |
| Subsidies | 1,071 |
| Provision for Emergency and others | 430 |
| B. Development & Net Lending | 1,276 |
| Federal PSDP | 1,000 |
| Net Lending | 276 |
| TOTAL EXPENDITURES (A+B) | 18,771 |