ISLAMABAD: The federal cabinet Tuesday approved Budget Strategy Paper for financial years 2018-19 to 2020-21 after holding discussions at length and providing useful suggestions for incorporation in the upcoming budget proposals.

The cabinet meeting was chaired by Prime Minister Shahid Khaqan Abbasi here at the PM’s Office, said a press release. During the meeting, the prime minister observed that sustained income and revenue streams would benefit the country instead of obtaining loans.

The Finance Division authorities presented the Budget Strategy Paper for the financial years (FY) 2018-19 to 2020-21 and briefed about the macroeconomic indicators of the current FY 2017-18. The secretary finance briefed that the Budget Strategy for FY 2018-19 to 2020-21 was based on four broad targets, including sustained growth momentum, ensuring fiscal consolidation, managing balance of payments and ensuring debt sustainability.

It was informed that the recently announced Economic Reforms Package including lowering tax rates, widening the tax base, real estate reforms, local amnesty, and tightening of foreign exchange regime would help increase revenues and reduce deficit.