Government Slashes Subsidies: A 8% Cut for FY27

The federal government has made a notable adjustment to its budget, trimming total subsidies by 8% for the fiscal year 2026-27. The new figure stands at Rs1,091 billion, a decrease from the previous year’s allocation of Rs1,186 billion.

Interestingly, the actual spending for FY2026 was recorded at Rs1,157 billion, which was still under the budgeted target. This shortfall can be largely attributed to a significant drop in the subsidies related to electricity.

Additionally, this budget introduces a fresh initiative called the PM Apna Ghar Programme, aimed at addressing housing needs. As these changes unfold, the implications for various sectors will certainly be closely watched.