Budget deficit at Rs 283.83b in 1Q

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ISLAMABAD - Pakistan’s budget deficit has remained at Rs 283.83 billion (1.2 per cent of the GDP) during the first quarter (July-September) of the ongoing financial year 2012-13.

According to Pakistan’s fiscal operation July-September 2012-13, the country’s expenditures recorded at Rs 975.928 billion (4.1 per cent of the GDP) against the revenue of Rs692.099 billion (2.9 per cent of the GDP) thus leaving budget deficit at Rs 283.83 billion (1.2 per cent of the GDP) during the first quarter (July-September) of the current fiscal year 2012-13.

The government has target to keep budget deficit at 4.7 per cent of the GDP during the ongoing financial year 2012-13, which is a challenging one at the time when Federal Board of Revenue (FBR) is struggling to achieve the revenue collection.

“The government has successfully curtailed the budget deficit at 1.2 per cent of the GDP during the first quarter of present fiscal year, which was around 1.3 per cent of the GDP during the same period of last year”, said on official of Finance Ministry while talking to The Nation. He was optimistic that government would able to control deficit at 4.7 per cent of the GDP during the fiscal year to be ended on June 30 2013. The improvement in budget deficit from 1.3 to 1.2 per cent of the GDP was primarily because of Coalition Support Fund (CSF) payments of $1.2 billion (Rs113 billion) by the United States to Pakistan in first quarter.

According to figures, the break-up of revenue collection of Rs 692.099 billion revealed that government has collected Rs 451.251 billion as tax revenue and Rs 240.848 billion as non-tax revenue during July-September period of the ongoing fiscal year 2012-13.

The official figures further revealed that total expenditures stood at Rs 975.928 billion. The expenditure on interest payment has recorded at Rs 312.828 billion in the first quarter of the year 2012-13, defence expenditure increased to Rs 117.441 billion, public orders and safety affairs cost Rs 15.310 billion and Environmental protection cost Rs 101 million during the period under review. The government spent Rs 1.717 billion on heath, Rs 1.163 billion on recreation, culture and religion, Rs 9.965 billion on education affairs and services and Rs 921 million on social protection during the first quarter of the year 2012-13. The development expenditures recorded at Rs 74.852 billion.

The government’s net borrowings to finance the budget deficit stood at Rs283.829 billion during the first quarter (July-September) of the current financial year 2012-13. The break-up of Rs 283.829 billion borrowing revealed that Rs 151.450 billion come from banking source and Rs 133.933 billion from non-banking source in July-September period of the 2012-13.

According to figures, the four provincial governments have recorded surplus budget of Rs 108.521 billion during the first quarter of the current fiscal year, as provincial’s expenditures recorded at Rs 244.486 billion against their revenue of Rs 353.008 billion during July-September period of 2012-13. The break-up of Rs 244.486 billion expenditures revealed that current expenditures recorded at Rs 206.469 billion and development expenditures (Public Sector Development Programme) at Rs 38.017 billion during the period under review.

Courtesy: the Nation


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