The budget 2007-08 shows gap between resources and expenditure and an overall shortfall of Rs 205 billion as estimated expenditure is higher than the estimated resources and that gap will be bridged by raising money externally and through borrowing.
The resource availability during 2007-08 has been estimated at Rs 1, 394 billion whereas the overall expenditure during the next fiscal is estimated at Rs 1,599 billion. The resources availability was Rs 1,100 billion during 2006-07 and the current expenditure is Rs 1,056 billion and development expenditure estimated to be Rs 543 billion.
Current expenditure shows an increase of 2.2 percent over the revised estimates of 2006-07,while development expenditure will increase by 37.7 percent in 2007-08 over the revised estimates of 2006-07. The share of current expenditure in total budgetary outlay for 2007-08 is 66 percent as compared to 72.4 percent in revised estimates for 2006-07.
Moreover, the expenditure on General Public Services inclusive of debt servicing, transfer payments and allowances is estimated at Rs 642 billion which is 60.8 percent of the current expenditure. An amount of Rs 35 billion has been allocated to Earthquake Reconstruction and Rehabilitation Authority (Erra) which will prove an additional burden on national exchequer.
Classification of imbalance in Budget 2007-08 shows that resources have been estimated at Rs 139,3673 million while expenditure is Rs 159,9611 million so estimated expenditure is higher than available estimated resources while in 2006-07, previous amount was Rs 1099684 million while expenditure was Rs 131,4778 million that highlighted governments' failure due to financial implications.
The net revenue in 2007-08 is Rs 902176 million, net capital receipts' amount is Rs 58518 million, financial contributions by provinces in PSDP is Rs 122,695 million and change in provincial cash balance is Rs 51751 million.
Moreover, the current expenditure is Rs 1056350 million, development expenditure(PSDP) is Rs 520000 million and other developmental expenditure is Rs 23261 million. Bank borrowing has been estimated at Rs 130938 million as it was Rs 140093 million in previous fiscal and privatisation proceeds amount is Rs 75000 while the amount was same in last fiscal year.
Internal resource amount in budget 2007-08 is Rs 1135140 million while external resources amount is Rs 258533 million. Revenue receipts in budget on gross basis are estimated at Rs 1368140 million showing an increase of 26.4 percent over the budget estimates 2006-07.