Pakistan budget deficit reaches 2.3pc of GDP during July-Dec period
Business
Petroleum Development Levy collection jumps by 166pc to Rs473bn
ISLAMABAD (Web Desk/Dunya News) – Pakistan saw the deficit budget reaching 2.3 per cent of the country’s gross domestic product (GDP) during the first six months of the fiscal year 2023-24, shows the latest data released by the Finance Division, as the defence expenditure jumped by 19pc and debt repayments soar by 64pc.
These figures reveal that the total expenditure stood at Rs9,261.764 billion against Rs6,853.996bn revenue, which translates into a deficit of Rs2,697.192. However, the total amount was reduced to Rs2,407.768bn thanks to a provincial surplus of Rs289.414bn.
Naturally, the government had to resort to more borrowing – external Rs608.381bn and domestic Rs1,799.387 – to bridge the gap – with the domestic borrowing comprising Rs251.611bn [non-bank] and Rs2,050.998bn [bank].
Meanwhile, the primary balance – overall balance excluding net interest payment (interest expenditure minus interest revenue) – was recorded at 1.7pc of the GDP during the July-Dec 2023-24 period.
On the other hand, the increase in Petroleum Development Levy on the insistence of International Monetary Fund (IMF) helped boosting revenue generation, as the collection under this head was up by a whopping 166pc to Rs473bn.
When it comes to the details, the overall revenue collection reached Rs6,853.996bn, out of which Rs4,834.306bn was tax revenue and Rs2,019.690bn non-tax revenue and in tax revenue.
Meanwhile, the federal tax revenue was recorded at Rs4,469.241bn and the provincial at Rs365.065 bn. Moreover, the share of direct taxes remained at Rs2,148.891bn and indirect taxes Rs2,320.350bn.
The current expenditure [Rs8,564.632bn] details are given as: interest [mark-up] payments Rs4,219.979bn, defence Rs757.602bn, pension Rs404.422bn, civil government Rs302.443b, subsidies Rs375.262bn, grants Rs469.488bn.
As far as the development expenditure – Public Sector Development Programme (PDSP) is concerned, the amount is given as Rs673.216bn – federal Rs130.408bn and provincial Rs542.808bn.
