Pakistan’s budget deficit touches Rs484.3 billion in Q1 2020

ISLAMABAD: Pakistan’s budget deficit has been recorded at Rs484.324 billion (approximately 1.1 per cent of the GDP) during the first quarter of the ongoing fiscal year.

A summary of consolidated federal and provincial budgetary operations 2020-21 states that the overall budget deficit for the first quarter of the ongoing fiscal year was Rs484.324 billion, however, the primary balance was recorded at Rs257 billion or 0.6 per cent of the GDP.

Punjab and Balochistan have recorded Rs28 billion and Rs29 billion surplus whereas the provinces of Sindh and Khyber Pakhtunkhwa (KP) closed the first quarter of the ongoing fiscal year budget with budget deficit negative by Rs8.5 billion and Rs4.8 billion, respectively. 

The report states that the government met budget deficit financing through Rs161 billion external and Rs322 billion domestic resources, including Rs230 billion bank borrowing and Rs92 billion non-bank borrowing. 

Total revenue collection during the first quarter was Rs1,478 billion which included Rs1,122 billion tax revenue and Rs356 billion non-tax revenue.

The Federal Board of Revenue (FBR) tax collection was Rs1,010 billion which included Rs363.6 billion from direct taxes, Rs155.5 billion from taxes on international trade (custom), Rs435 billion from sales tax and Rs56 billion collection from federal excise duty. Provincial tax collection of Rs111 billion included Rs58.4 billion from sales tax on services, Rs1.9 billion from excise duty as well as Rs11.6 billion from stamps duties, and Rs7 billion from motor excise tax, whereas Rs32 billion collection was under the head of others. 

Total expenditure during the first quarter of the ongoing fiscal year was of Rs1,963 billion, besides a statistical discrepancy of negative Rs64 billion with the current expenditure of Rs1,812 billion that included Rs742 billion mark-up payment, Rs224 billion defence spending, Rs86 billion pension, Rs88 billion under the running of civil government, Rs2.8 billion subsidies and Rs108 billion grants to others, while provincial expenditures were Rs559 billion.

Total development spending during the first quarter stood at Rs164 billion with federal spending at Rs79 billion and provincial at Rs89 billion, and net lending to PSEs (public sector enterprises) of Rs50 billion.