ISLAMABAD - The PPP-led coalition government has started to prepare its fifth annual budget for the upcoming financial year 2012-2013, as it has discussed the Budget Strategy Paper (BSP) for the next fiscal year on Tuesday.“The first meeting regarding Budget Strategy Paper (BSP) for the next fiscal 2012-13 was held today (Tuesday), wherein discussions were held regarding revenue mobilisation and expenditures control,“ said a senior official of the Finance Ministry. He added the government was most likely to fix fiscal deficit at four per cent of the GDP for the upcoming financial year. However, it would be a great challenge for the government to achieve this target in the next year, as the government had also fixed fiscal deficit target at four per cent of the GDP for the ongoing financial year which later revised to 4.7 per cent. However, the International Monetary Fund (IMF) in its recent report projected that fiscal deficit of Pakistan could go to seven per cent of the GDP against the revised target of 4.7 per cent due to the absence of corrective measures.According to high-ranking official of the Finance Ministry, the tax to GDP target would be fixed at around 10 per cent for the upcoming fiscal year if Federal Board of Revenue (FBR) achieved revenue collection target of Rs1952 billion during the current financial year that would be 9.6pc of the GDP. He said that Public Sector Development Programme (PSDP) volume would be enhanced to almost Rs 350 billion for the financial year to come which was Rs290 billion for the current fiscal year.Meanwhile, discussions with other officials and even parliamentarians of the coalition government revealed that the government was contemplating to announce pro-people budget to win support for the upcoming general election. Water and Power Minister Syed Naveed Qamar’s unexpected statement that there would be no power loadshedding also seems an election ploy of the government.Some of the parliamentarians informed that they would ask Prime Minister Gilani not to impose any new tax in the upcoming budget otherwise they could not win the support of the masses. Similarly, they are also of the view that government should not further increase the power tariff and POL prices in the next few months.However, according to independent economists, if the government does not pass on the soaring oil prices to the consumers, it has to provide huge financial subsidy.The IMF has also observed in its recent report that due to election year, the country’s economy might suffer as it stated in its report, “There are considerable downside risks to this already difficult baseline, particularly in the context of an increasingly difficult global environment and concerns about policy weakening ahead of Senate elections in 2012 and parliamentary elections in 2013.”