ISLAMABAD: The government has budgeted overall fiscal deficit at an unsustainable 6.9 percent of GDP for 2024-25 against the revised -7.4 percent for 2023-24 which was higher by 0.9 percent than the actual budgeted -6.5 percent.

In total terms the federal budget deficit is projected at Rs 8500 billion for 2024-25 against Rs 7506 billion budgeted for 2023-24 revised upwards to Rs 8388 billion.

The primary deficit is budgeted at 2 percent as percentage of GDP for 2024-25 against the International Monetary Fund (IMF) projection of 0.4 percent as noted in the second ad final review of the Stand By Arrangement dated May 2024.

Mid-year review: 77pc borrowing for financing fiscal deficit thru domestic sources: MoF

In total terms the primary deficit is projected at Rs 2492 billion for 2024-25 against Rs 397 billion for 2023-24 which was later revised to Rs 402 billion.

Provincial surplus is budgeted at Rs 1217 billion for 2024-25 against Rs 600 billion for 2023-24 which was later revised to Rs 539 billion.

Copyright Business Recorder, 2024

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