ISLAMABAD - Pakistan’s budget deficit ballooned to Rs1.35 trillion during fiscal year 2015-16, which was Rs21.3 billion higher than the government’s target.

The budget deficit, gap between revenues and expenditures, was recorded at Rs1349.3 billion (4.6 percent of the GDP) for the fiscal 2015-16 as against the target of Rs1328 billion (4.3 percent of the GDP). The expenditures stood at Rs5,796.302 billion as compared to the revenues of Rs 4,446.979 billion, according to the latest report of the Ministry of Finance.

Finance Minister Ishaq Dar blamed the provincial governments for missing deficit targets, saying provinces had not recorded the expected surplus budgets. The provincial governments had given budget surplus of Rs141.67 billion as against the federal government’s projection of Rs297 billion.

In expenditures, Pakistan’s total debt service cost Rs1263.37 billion, which is higher than the cumulative spending on development and defence during the period. Debt servicing on domestic loans stood at Rs1150.8 billion, while that on foreign loans it amounted to Rs112.6 billion.

Defence expenditure remained the second in top expenditures head as it was recorded at Rs757.7 billion during the year 2015-16. Meanwhile, the development expenditures at the federal level remained the lowest among three major Ds (debt servicing, defence and development) as the federal public sector development programme just consumed Rs593.4 billion.

The government spent Rs222.52 billion on pension payment, Rs96.26 billion on public order and safety affairs, Rs82.6 billion on education, Rs12.17 billion on health and Rs9.52 billion on recreation culture and religion. The statistical discrepancy remained on the higher side, apparently in a bid to cover up expenditures. It was Rs212 billion during the year.

The documents further showed that the country fetched total revenue of Rs4446.9 billion. The government collected Rs3660.4 billion under the head of taxes and Rs786.56 billion in the form of non-tax revenues during the period under review.

When it comes to non-tax revenues, the government collected Rs57.7 billion as mark-up on public sector entities, Rs88.55 billion as dividend, Rs227.9 billion as profit of State Bank of Pakistan, Rs107 billion as defence (Coalition Support Fund etc), Rs20.8 billion as passport fee, Rs9.1 billion as discount retained on crude oil, Rs57.75 billion as royalties on gas and oil, Rs1. 6 billion as Windfall Levy against crude oil and Rs181.7 billion through other sources.

The four provincial governments recorded budget surplus of Rs141.67 billion during fiscal 2015-16, as their expenditures remained at Rs2152.2 billion as compared to the revenues of Rs2293.9 billion.