ISLAMABAD– Independent Economists have said that the government will not be able to achieve current fiscal year’s revised budget deficit target of 4.7 per cent due to resource-constraints.
While talking to the news agency here on Sunday Dr Salaman Shah said that budget deficit was expected to widen further in current fiscal year 2011-12 because of debt repayments and a lack of external assistance. He said that the government’s recent decision of postponing the launching of 3G license will also widen the budget deficit as the launching of 3G license was expecting to generate Rs 75 billion during on going financial year.
“Keeping in view the depressive economic situation in the country budget deficit may remain in the range of 6 to 7 per cent,” Dr. Salman Shah said, adding that this is the pre-election year and the government was tending to spend more on the public sector development front on the eve of general election.
Executive Director(ED) Sustainable Development Policy Institute (SDPI) Dr.Abid Sulari said that to get revised budget deficit target of 4.7 per cent was almost impossible for the government due to slow releases from Coalition Support Fund (CSF) and financial constraints.
While talking to Online President Pakistan Economy Watch (PEW) and economist Dr.Murtaza Mughal said that government has needed to take tangible steps to issue Secondary Public Offerings for the state-run oil firms to bridge the fiscal gap.
He said that Pakistan had already started repaying to the International Monetary Fund (IMF) loan last month with a $399 million payment which will also affect government efforts to keep budget deficit in control.
He further said that noting impossible for the government but it needed political will so in the case with budget deficit if government can take concrete measures budget deficit target may be achieved.