Fiscal deficit in July-March 2023-24 touches Rs4,337bn
Business
FBR collects a total of Rs6.711bn
- Non-tax revenue stood at Rs2,517bn
- Petroleum Development Levy gives govt Rs719.59bn – the highest ever in history – which is Rs247bn more than last fiscal year
ISLAMABAD (Dunya News/Web Desk) – Fiscal deficit in the first nine months of 2023-24 reached Rs4,337 billion, as Pakistan continues to feel the effects of rupee devaluation and the failure to increased tax-to-GDP ratio, which is one of the worst around the globe.
Official figures released by the finance ministry show that the government expenditures had jumped to Rs13,682bn during the July-March period of 2023-24 – the current fiscal year – at a time when overall revenue collection remained at Rs1,682bn.
It again shows Islamabad’s inability to reduce fiscal or budget deficit – a product of small tax net, a plethora of subsidies extended to powerful business interests and absence of economic activities due high interest rates, which could boost revenue generation.
With lucrative sectors like real estate and retail as well as large agriculture landholdings not paying the taxes, the successive governments have always opted for indirect taxation – a practice that always overburden the ordinary people.
Out of the total government income, the Federal Board of Revenue (FBR) contributed Rs6,711bn through tax collection.
As far as the remaining amount is concerned, the non-tax revenue stood at Rs2,517 out of which the share of petroleum development levy (PDL) was Rs719.59 – a record amount in Pakistan’s history despite the reduced consumption of POL products. It represented an increase of Rs247bn when compared to the corresponding period of previous fiscal year.
Obviously, it is result of the government decision to follow the International Monetary Fund (IMF) conditions to increase the PDL on petrol and other petroleum products, thus keeping the fuel prices higher – a policy that is sustaining and fuelling the inflation in the longer run.
Meanwhile, the Centre transferred Rs3,815bn to provinces under the National Finance Commission (NFC) Award – a constitutional mechanism to ensure that the federating units get their rightful share in national resources.
The government expenditures under different important heads are given as: defence Rs1,222bn, pensions Rs611bn, subsidies Rs473bn and development projects [Public Sector Development Programme (PSDP)] Rs270bn.
