Fiscal deficit narrows to 0.8pc of GDP in Q1FY22

Fiscal operation report shows statistical discrepancy of Rs14bn in the period under review 

ISLAMABAD: The budget deficit for the first quarter (July-September) of the current fiscal year (Q1FY22) narrowed to 0.8 per cent of the GDP, compared with the deficit of 1.1pc in the same quarter of the last fiscal year.

As per details, the finance division on Tuesday released the fiscal operation report of the first quarter which indicated that total revenue clocked in at Rs1.8 trillion with Rs1.5 trillion tax revenue and Rs275 billion non-tax revenue.

In tax revenue, federal government collection was Rs1.39 trillion whereas provincial collection stood at Rs134.7 billion.

On the other hand, the federal government has collected Rs241.5 billion and provincial governments Rs34 billion in non-tax revenue.

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Similarly, the total expenditures in Q1FY22 were recorded Rs2.24 trillion with current expenditures at Rs1.96 trillion and development expenditure as well as net lending totaling Rs264.6 billion.

The markup payments were recorded Rs622 billion which include Rs571 billion domestic, Rs51 billion foreign, Rs261.6 billion defence affairs and services, Rs110.7 billion pension, Rs89 billion civil government expenses, Rs74 billion subsidies, and Rs169 billion grants.

The report states that a statistical discrepancy of Rs14 billion was also observed in the period under review. 

Overall, the budget deficit was recorded Rs436 billion whereas the primary balance was Rs184 billion in surplus.

Documents state that the total federal share in tax revenue was Rs1.397 trillion which included Rs481 billion direct taxes, Rs221 billion taxes on international trade, Rs624 billion sales tax, and Rs70 billion FED.

Meanwhile, the total provincial share in tax revenue was Rs134.7 billion which included sales tax on services Rs66 billion, excise duty Rs2 billion, stamp duty Rs14 billion, motor vehicle duty Rs9 billion whereas others taxes were Rs42 billion.

On the other hand, the federal share was Rs241.5 billion out of the total non-tax revenue of Rs275 billion. 

The federal share includes markup on PESs Rs19.4 billion, dividend Rs1.9 billion, SBP profit Rs109 billion, PTA surplus Rs30 billion, royalties on gas Rs21.7 billion, defence receipts Rs2.8 billion, Passport fee Rs6.1 billion, discount retained on crude oil Rs3.5 billion, windfall levy against crude oil Rs2.2 billion, gas infrastructure development (GID) cess Rs6.5 billion, natural gas surcharges Rs4.7 billion, Petroleum levy Rs13.3 billion and others taxes were Rs18.9 billion.

The provinces’ non tax revenue was recorded Rs34.2 billion in the first quarter.

Besides, PSDP releases from July to September were recorded at Rs262 billion which include Rs108 billion federal and Rs153 provincial share.

Moreover, provincial budget surplus was recorded Rs276.9 billion in first quarter which includes Punjab Rs183 billion, Sindh Rs60 billion, Balochistan Rs37 billion whereas KP’s budget remained Rs3 billion negative.

On the other hand, the total provincial revenue was Rs1.07 trillion while their expenditures were Rs800.1 billion.

Overall, provincial current expenditures stood at Rs640 billion.

 

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Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]

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