ISLAMABAD-Pakistan’s budget deficit was recorded at Rs1.68 trillion (2 percent of the GDP) during first half (July to December) of the current fiscal year amid massive increase in interest payment.
The country’s expenditures were recorded at Rs6.38 trillion as compared to the revenues of Rs4.698 trillion, making deficit of Rs1.68 trillion or 2 percent of the Gross Domestic Products during July-December period of the ongoing financial year. Primary balance, which is the difference between government’s revenue and its non-interest expenditure, recorded surplus of Rs889.6 billion during the period under review.
In expenditures, interest payment has once again increased massively, as it cost Rs2.573 trillion. The government has paid interest worth of Rs2.273 trillion on domestic loans and Rs300 billion on foreign loans. Meanwhile, defence spending has remained at Rs638.8 billion. The spending on development expenditures including federal as well as provincial remained at Rs590.9 billion in the first half of the year 2022-23. In other expenditures, the government has paid Rs321.2 billion as pension payment, Rs226.69 billion on running of civil government expenditures, Rs196.6 billion as subsidy and Rs389.16 trillion as grants to others.
Of the total revenues of Rs4.698 trillion, the government collected around Rs967 billion as non-tax revenues during the period under review. In non-tax revenues, the government had collected Rs77.6 billion as mark-up on public sector entities, Rs40.8 billion as dividend, Rs371.2 billion as surplus profit of the State Bank of Pakistan, Rs32.58 billion as profit of Pakistan Telecommunication Authority (PTA), Rs9.26 billion as defence, Rs16.4 billion as passport fee and Rs10.8 billion as discount remained on crude oil, Rs56.7 billion as royalties on gas and oil, Rs14.84 billion as windfall levy against crude oil, Rs177.8 billion as petroleum levy and Rs68.296 billion through other sources.
The four provincial governments recorded budget surplus of Rs101.171 billion during the first half of FY2023, as their expenditures remained at Rs2.191 trillion as compared to the revenues of Rs2.293 trillion.