ISLAMABAD: Pakistan’s budget deficit has widened to Rs1.652 trillion in the first three quarters of the current fiscal year (July-March 2021), despite Rs413 billion budget surplus by the provinces, according to the Finance Ministry.
A summary of consolidated federal and provincial fiscal operations for July-March 2021 uploaded by the Finance Ministry on its website, revealed that fiscal deficit as percentage of GDP increased to 3.6 percent of the GDP following total expenditure of Rs6.644 trillion against the total revenue of Rs4.992 trillion.
Primary balance, however, was surplus Rs451.812 billion.
The government has financed the fiscal deficit by borrowing Rs562.1 billion from external and Rs1.089 trillion from domestic sources, and domestic borrowing included Rs292.1 billion from non-bank and Rs797.751 billion from the banking sector.
Total expenditure of Rs6.664 trillion included Rs6.085 current expenditure, development expenditure and net lending Rs722.947 billion, and statistical discrepancy (negative) -Rs163.758 billion.
Of the current expenditure, mark up payment stood at Rs2.103 trillion with Rs1.933 trillion domestic and Rs169.877 billion foreign, defence affairs and services Rs783.9 billion, pension Rs329.032 billion, running of civil government Rs311.896 billion, subsidies Rs204.262 billion, and grants to others Rs424.252 billion.
Development expenditure and net lending was recorded Rs722.947 billion, whereas, total development expenditure were recorded at Rs667.997 billion, which included total public sector development programme Rs653.931 billion – Rs263.98 federal PSDP and Rs389.963 billion provincial PSDP.
Other development expenditure stood at Rs54.950 billion and net lending to PSEs Rs54.950 billion.
The Federal Board of Revenue (FBR) tax collection during the first three quarters of the current fiscal year was Rs3.394 trillion following direct taxes Rs1.246 trillion, taxes on international trade Rs541 billion, sales tax Rs1.415 trillion, and federal excise duty Rs191.6 billion.
Provincial tax collection of Rs370.117 billion included sales tax on services Rs210.753 billion, excise duty Rs6.334 billion, stamp duties Rs40.289 billion, motor vehicles tax Rs20.532 billion, and other taxes Rs92.209 billion.
Non-tax revenue both federal and provincial was Rs1.227 trillion during the first three quarters of the current fiscal year.
Federal non-tax revenue of Rs1.145 trillion included surplus profit of State Bank of Pakistan Rs497.541 billion, petroleum levy Rs369.210 billion, mark up of PSEs and others Rs53.210 billion, dividend Rs19.593 billion, profit PTA and others Rs19.999 billion, defence receipts Rs10.544 billion, passport fee Rs10.239 billion, discount retained on crude oil Rs7.051 billion, royalties on oil and gas Rs53.321 billion, windfall levy against crude oil Rs1.396 billion, petroleum levy on LPG 2.316 billion, gas infrastructure development cess Rs15.420 billion, natural gas development surcharge Rs17.249 billion, and others Rs68.315 billion.
Provincial non-tax collection stood at Rs82.150 billion.
Provincial budget surplus included Rs244 billion by Punjab Rs67 billion by Sindh, Rs66 billion by Balochistan, and Rs66 billion by Khyber-Pakhtunkhwa.
Copyright Business Recorder, 2021
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