Budget deficit hits Rs 922bn in five months

During the first five months of the current financial year, the federal expenditure was Rs 2.4 trillion and the revenue was Rs 1.4 trillion.

In five months period, the budget deficit was recorded at Rs 1.0 trillion as projected, however, in case of an increase in tax shortfall, there is a risk of rise in the deficit.

As per media reports, during July-November of the current financial year, the budget deficit reached Rs. 922 billion, which is 5 percent more than the five months of the previous financial year.

According to Finance Ministry figures, the federal government's expenditure during the last five months was Rs 2.4 trillion, of which Rs 244 billion was spent on debt repayment. Thus, federal government spending remained at last year's level.

After the payment of the provinces, the revenue of the federation increased by 22 percent to Rs 1.4 trillion. The budget deficit target for the current financial year is Rs. 3.430 trillion. However, in the case of a reduction in tax collection, the budget deficit is likely to increase.