Total fiscal deficit reaches Rs1,220 billion during FY 2016-17

Karachi: Data from Ministry of Finance has revealed that domestic debt servicing had a major part to play in the high fiscal deficit recorded for financial year 2016-17, a local newspaper reported.

Domestic debt formed 65.4 per-cent of the total fiscal deficit reaching Rs1,220b during FY 2016-17 higher by Rs70b from FY 2015-16.

Locally, the government raised Rs1,087b for budgetary support purposes during FY 2016-17 from State Bank of Pakistan (SBP).

Pakistan Investment Bonds (PIBs) still form the biggest chunk obtained in the stock of government borrowing.

PIBs worth Rs4,391b were held by the government of which Rs3,173.6b were of banks and Rs1,218b by non-banks till end of FY 2016-17.

Debt servicing in terms of percentage against GDP stood at 3.8pc for FY 2016-17, 30.7pc against tax revenues and 90.8pc against direct taxes.

 

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