Pakistan’s budget deficit for the first nine months of the current fiscal year 2021-22 has surged to Rs2565 billion (4 per cent) of GDP.
The Ministry of Finance on Tuesday issued the fiscal operation from July to March of the current fiscal year 2021-22 which indicates that total revenue clocked in at Rs5,874 billion with Rs4,821.9 billion tax revenue and Rs1,052.2 billion non-tax revenue.
In tax revenue, federal government collection was Rs4,383.6 billion whereas provincial collection stood at Rs438.2 billion.
On the other hand, the federal government has collected Rs958.5 billion and provincial governments Rs93.7 billion in non-tax revenue.
Similarly, the total expenditures in the first nine months of the current fiscal year were recorded at Rs8,439.7 billion with current expenditures at Rs7,378 billion and development expenditure as well as net lending totaling Rs1,051 billion.
The markup payments were recorded at Rs2,118.4 billion which include Rs1,897.2 billion domestic, Rs221.2 billion foreign, Rs881.8 billion defence affairs and services, Rs395.3 billion pension, Rs318.9 billion civil government expenses, Rs575.2 billion subsidies, and Rs919.9 billion grants.
The report states that a statistical discrepancy of Rs10.6 billion was also observed in the period under review.
Overall, the budget deficit was recorded at Rs2,565 billion whereas the primary balance was Rs447.1 billion in the negative (0.7 per cent of GDP).
Documents state that the total federal share in tax revenue was Rs4,383.6 billion which included Rs1,578.5 billion indirect taxes, Rs714.7 billion in taxes on international trade, Rs1,866.1 billion in sales tax and Rs224.1 billion in Federal Excise Duty.
Meanwhile, the total provincial share in tax revenue was Rs438.2 billion which included the sales tax on services Rs251.5 billion, excise duty Rs6.7 billion, stamp duty Rs50.2 billion, motor vehicle duty Rs27.2 billion whereas other taxes were Rs102.4 billion.
On the other hand, the federal share was Rs958.5 billion out of the total non-tax revenue of Rs1,052 billion.
The federal share includes a markup on PESs Rs55.08 billion, dividend Rs36.6 billion, SBP profit Rs473.5 billion, PTA profit Rs39.01 billion, royalties on gas Rs61.6 billion, defence receipts Rs12.1 billion, passport fee Rs15.8 billion, discount retained on crude oil Rs11.8 billion, windfall levy against crude oil Rs8.7 billion, gas infrastructure development (GID) cess Rs14.3 billion, natural gas surcharges Rs17.5 billion, petroleum levy Rs125.5 billion and others taxes were Rs83.7 billion.
The provinces’ non-tax revenue was recorded at Rs93.7 billion in the first nine months of 2021-22.
Besides, PSDP releases from July to March were recorded at Rs1,032.6 billion which includes Rs308.6 billion federal and Rs724.06 provincial shares.
Meanwhile, the Provincial surplus stood at Rs599 billion during the first nine months of the current fiscal year with the highest of Rs392 billion by the Punjab government, followed by Rs114 billion by Sindh, Rs90.541 billion by Baluchistan and Rs1.637 billion by Khyber Pakhtunkhwa.
Provincial tax collection during the nine months of the current fiscal year remained at Rs438 billion and transfer from the federal government under NFC Award was Rs2,584 billion from July to March 2021-22.
