This is apropos a recently published article, "Outlook for public finances" by Dr Hafiz A Pasha who has commented on the fiscal performance of 1Q 2017-18 as well as fiscal position for entire financial year 2017-18. Commenting on the whole fiscal year 2017-18 would be too early. The position narrated by Dr Pasha for 1Q is not based on actual number. Neither the fiscal deficit for 1Q increased by 1.5% of GDP nor the bank borrowing exceeded by Rs 420 billion by end September, 2017. Actual figures available on SBP website under the heading "Data on Monetary Aggregates - Broad Money M-2", bank borrowing on 29th September, 2017 was Rs 408 billion and based on provisional available figures, fiscal deficit for end quarter was at 0.9% of GDP which was result of better tax collection and stringent expenditure management.
Fiscal performance during 1Q is significantly better than the previous year's, especially due to better collection by FBR which indicated an increase of over 20%. All efforts and effective measures are being taken by the government to achieve the end year target of FBR. As regards collection on account of non tax, these are continuously being monitored and concerned agencies are being asked to pay non tax as budgeted. Provincial surpluses during 1Q of current financial year are provisionally at Rs 88 billion. Based on the performance of 1Q and measures being taken by the government, it may be safely assumed that targets on account of overall fiscal deficit and revenue collection are achievable.
Comments
Comments are closed.