Only KP recorded surplus budget in FY2018

2018-08-28T01:40:20+05:00 Imran Ali Kundi

ISLAMABAD - Khyber Pakhtunkhawa (KP) was the only province that recorded surplus budget by not utilising the revenues during previous fiscal year.

Apart from KP, other three provinces had given deficit budgets during last fiscal year (FY2018). Collectively, the four provincial governments recorded budget deficit of Rs22.37 billion during FY2018, according to the official figures of ministry of finance. The provincial expenditures remained at Rs2960.9 billion as compared to the revenues of Rs2938.5 billion, making the deficit of Rs22.37 billion.

The federal government had budgeted provinces to give budget surplus of Rs347 billion during last fiscal year. However, the provinces had recorded deficit budgets of Rs22 billion, which became one of the reasons for higher fiscal deficit of the country. The overall budget deficit – the gap between income and expenditure – widened to 6.6 percent of gross domestic product (GDP) or Rs2.26 trillion in 2017-18.

The Punjab government’s revenue was recorded at Rs1.412 trillion as compared to the expenditures of Rs1.419 trillion making deficit of Rs6.6 billion. The Punjab government had received Rs1.078 trillion from the federal government under National Finance Commission (NFC) award. The Punjab province had generated only Rs197.5 billion from provincial taxes during the period under review.

Similarly, the Sindh province registered budget deficit of Rs42.3 billion as its revenues remained at Rs802.8 billion as against expenditures of Rs845.1 billion. The Sindh government has received Rs562.3 billion from the federal government during FY18. Sindh had generated only Rs176.1 billion from its own sources during the period under review.

However, the Khyber Pakhtunkhwa was the only province, which had recorded surplus budget. The province’s revenue was recorded at Rs481.5 billion as against its expenditures of Rs447.1 billion making surplus of Rs34.4 billion. The province received Rs363.5 billion from the federal government under NFC during the last fiscal year. The KP received one percent additional funds under the NFC award due to the war on terror. The provinces had generated only Rs18.3 billion from its own taxes.

The Balochistan province also followed the pattern of Punjab and Sindh by giving deficit budgets. Balochistan had given budget deficit of Rs7.83 billion as its expenditures were recorded at Rs250.1 billion as compared to the revenues of Rs242.3 billion. The province had received Rs212.9 billion in last financial year from the federal government under the NFC award. The Balochsitan province had accumulated Rs9.4 billion from the provincial taxes during previous fiscal year.

View More News