ISLAMABAD - The countrys fiscal deficit swelled to Rs 490.4 billion or 2.9 per cent of the gross domestic product (GDP) during the first half (July-December) of the current fiscal year 2010-11. According to the Fiscal Operations Report for July-December of 2010-11, the revenue collection was recorded at Rs 989.618 billion or 5.8 per cent of the GDP against the expenditures of Rs 1480.009 billion or 8.6 per cent of the GDP, resulting in a budget deficit of Rs 490.391 billion during the first half of ongoing financial year. The government of Pakistan agreed with the International Monetary Fund to keep fiscal/budget deficit at 4.7 per cent of the GDP during the ongoing fiscal year. A widening in the fiscal deficit to 2.9 per cent of GDP in the first half, ended December 31, was a warning that Pakistan would likely overshoot the deficit target by the end of the fiscal year in June, analysts said. They forecast a budget deficit of at least 6 per cent of GDP at the end of current fiscal year. According to the report, the revenue collection included the federal and provincial tax revenues of Rs 721.576 billion in which the federal taxes generated Rs 693.735 billion and the provincial governments collected Rs27.841 billion. Meanwhile, the non-tax revenues amounted to Rs 268.042 billion during the first half, including Rs 242.770 billion federal non-tax revenue and Rs 25.272 billion provincial non-tax revenues. It includes Rs 17.370 billion collected through development surcharge on gas, Rs 10.520 billion through discount retained on crude oil and Rs 26.596 billion from royalty on oil and gas and Rs 15.670 billion though others. The expenditure data discloses that the total consolidated expenditure was Rs 1480.009 billion or 8.6 per cent of the GDP in the first half of the current fiscal year. The non-development expenditure is estimated at Rs 1226.780 billion. The government spent Rs 310.390 billion on interest payments and Rs 214.982 billion as defense expenditure. The development expenditure and net lending amounted to Rs 207.847 billion, federal development expenditure Rs 66.695 billion, provincial development expenditures Rs 58.163 billion. The federal government spent Rs 276.450 billion on domestic debt servicing and an amount of Rs33.940 billion was spent on external debt servicing. The financing of the total budget deficit Rs 490.391 billion was managed through Rs 46.999 billion external borrowing and Rs 443.392 billion from local borrowing. Local borrowing included Rs 285.951 billion as bank borrowing.