WEDNESDAY NOVEMBER 28: Containing fiscal deficit: provincial surpluses, CSF key factors

ISLANABAD: The government was able to contain fiscal deficit at 1.2 percent of GDP for July-September this year largely because of Rs 85 billion provincial budget surpluses and $1.18 billion reimbursed by the US on account of the Coalition Support Fund (CSF).
According to data regarding fiscal operation released by the Ministry of Finance for this period, the total government bank and non-bank borrowing stood at Rs 370 billion, equal to 1.6 percent fiscal deficit, which was reduce to Rs 284 billion by utilising Rs 85 billion provincial budget surplus to show 1.2 percent budget deficit for the first quarter. An official said that the major portion of the CSF reimbursement was used to provide subsidy to the power sector.
The total revenue collection stood at Rs 692 billion - Rs 451 billion collection by the Federal Board of Revenue (FBR) and Rs 240 billion revenue from non tax sources - during the first quarter against the total expenditure of Rs 975 billion. The Public Sector Development Programme (PSDP) expenditure was recorded at Rs 68 billion with Rs 30 billion by the federal government and Rs 38 billion by the provinces.
The provincial share in the revenue collection in the divisible pool was worked out at Rs 277 billion and defence expenditure stood at Rs 117 billion. The government made Rs 312 billion interest payment during the first quarter of the current fiscal year with Rs 299 billion for domestic debt and Rs 13 billion on servicing of foreign debt.
Provincial fiscal operations also showed that the Punjab government closed its fiscal quarter with a surplus budget of Rs 53 billion subsequent to Rs 159 billion revenue and Rs 105 billion expenditure. The province's own tax and non-tax collection stood at Rs 24 billion whereas Rs 128 billion was transferred to the province as its share from federal revenue and another Rs 7 billion as federal loan and grant. Punjab's total expenditure was Rs 105 billion with Rs 85 billion current expenditure and Rs 18 billion development.
Sindh closed its fiscal operation with Rs 37 billion surplus budget in the first quarter as total expenditure of the provincial government were Rs 66 billion against the total revenue of Rs 103 billion. The provincial government's own tax and non-tax revenue collection was Rs 25 billion during the first quarter and Rs 73 billion was transferred to Sindh as its share in the federal revenue. Sindh's current expenditure included Rs 60 billion during the first quarter and development expenditure of Rs 4 billion.
Khyber Pakntunkhwa closed its fiscal quarter with a surplus budget of Rs 1.3 billion, with Rs 49 billion expenditure and Rs 51 billion revenue. The total revenue collection by the provincial government remained at Rs 2 billion. KP received Rs 43 billion and Rs 5 billion as loans and grants from the federal government. The province incurred Rs 49 billion expenditure with Rs 37 billion current expenditure and Rs 12 billion development expenditure. Balochistan closed fiscal quarter with a budget surplus of Rs 16 billion following Rs 22 billion expenditure and Rs 38 billion revenue.
The provincial government received Rs 32 billion revenue share from federal divisible pool and Rs 4 billion was transferred to the province as federal loans and grants. The total expenditure of the provincial government was Rs 22 billion with Rs 19 billion current expenditure and Rs 3 billion development expenditure.