Pakistan's fiscal deficit jumps to 2pc of GDP in H1FY23
Business
The latest figures have been released by the ministry of finance
ISLAMABAD (Web Desk) - The country's fiscal deficit has been recorded at two percent of the GDP or Rs1,683 billion during the first six months of the fiscal year 2022-23.
The latest figures have been released by the ministry of finance.
A summary of consolidated federal and provincial fiscal operation for July-December 2022-23 showed that total revenue stood at Rs4,698bn against the total expenditure of Rs6,382bn during the first six months of the current fiscal year.
Current expenditures stood at Rs6,061bn following a whooping increase of over 77 per cent compared to the last fiscal year. Debt servicing during July-December last year was Rs1,452bn which increased to Rs2,573bn during the same period of the current fiscal year.
The development expenditure and net lending was Rs636bn. Tax revenue was recorded Rs3,731bn and non-tax revenue Rs967bn.
In tax revenue, federal government collection was Rs3,428 billion, whereas, the provincial collection stood at Rs303 billion. In non-tax revenue, federal government collection stood at Rs896.4 billion and provincial governments Rs70 billion.
In current expenditure mark-up payments of Rs2,573bn included Rs2,273.4bn domestic, Rs299.5bn foreign, Rs638.8bn defence affairs and services, Rs321.1bn pension, Rs226.6bn civil government expenses, Rs196.6bn subsidies, and Rs389.1bn grants.
The report also noted that a statistical discrepancy of negative Rs315 billion was also recorded during the period under review.
Overall, the budget deficit was recorded at Rs1,683bn, whereas, the primary balance was Rs889.5bn (1.1 per cent of GDP).
The fiscal deficit was financed by domestic net borrowing of Rs1,685bn from non-bank resources and Rs393.842bn from the bank.
Total federal share in tax revenue was Rs3,428bn which included Rs1,525bn direct taxes, Rs466bn in taxes on international trade, Rs1,271bn in sales tax, and Rs164bn in Federal Excise Duty.
