Budget deficit reaches Rs1,371.8bn in first six months of 2021-22

Pakistan’s budget deficit for the first six months of the current fiscal year 2021-22 has touched Rs1371.8 billion amounting to 2.1 per cent of Gross Domestic Product (GDP).

The Ministry of Finance on Wednesday issued the fiscal operation of the first half of the current fiscal year 2021-22 which indicates that total revenue clocked in at Rs3955.97 billion with Rs3191.04 billion tax revenue and Rs764 billion non-tax revenue.

In tax revenue, federal government collection was Rs2919.80 billion whereas provincial collection stood at Rs271.2 billion.

On the other hand, the federal government has collected Rs697.3 billion and provincial governments Rs67 billion in non-tax revenue.

Similarly, the total expenditures in six month of the current fiscal year were recorded Rs5327.7 billion with current expenditures at Rs4675.6 billion and development expenditure as well as net lending totaling Rs571.4 billion.

The markup payments were recorded Rs1452.8 billion which include Rs1312 billion domestic, Rs140 billion foreign, Rs520.4 billion defence affairs and services, Rs251.7 billion pension, Rs209.9 billion civil government expenses, Rs313.3 billion subsidies, and Rs548.8 billion grants.

The report states that a statistical discrepancy of Rs80.6 billion was also observed in the period under review. 

Overall, the budget deficit was recorded Rs1371.8 billion whereas the primary balance was Rs81.07 billion in surplus.

Documents state that the total federal share in tax revenue was Rs2919.8 billion which included Rs1019.5 billion direct taxes, Rs480.3 billion taxes on international trade, Rs1274.4 billion sales tax and Rs145.4 billion Federal Excise Duty.

Meanwhile, the total provincial share in tax revenue was Rs271.2 billion which included sales tax on services Rs145.6 billion, excise duty Rs4.2 billion, stamp duty Rs32.3 billion, motor vehicle duty Rs17.4 billion whereas others taxes were Rs71.4 billion.

On the other hand, the federal share was Rs697.3 billion out of the total non-tax revenue of Rs764.9 billion. 

The federal share includes markup on PESs Rs32.5 billion, dividend Rs25.9 billion, SBP profit Rs379.9 billion, PTA profit Rs38.8 billion, royalties on gas Rs39.07 billion, defence receipts Rs7.7 billion, passport fee Rs10.4 billion, discount retained on crude oil Rs7.5 billion, windfall levy against crude oil Rs5.1 billion, gas infrastructure development (GID) cess Rs11.1 billion, natural gas surcharges Rs9.8 billion, petroleum levy Rs70.007 billion and others taxes were Rs57.13 billion.

The provinces’ non tax revenue was recorded Rs67.5 billion in the first half year of 2021-22.

Besides, PSDP releases from July to December were recorded at Rs565.3 billion which include Rs199.6 billion federal and Rs365.7 provincial share.

 

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