By Staff Reporter
ISLAMABAD: Pakistan’s fiscal deficit continues to pose economic challenges, reaching 3.7 percent of GDP or Rs3.078 trillion in the first nine months of the current fiscal year (July-March 2023), despite a provincial surplus of Rs456 billion.
The Finance Ministry released a consolidated fiscal operation report on Friday, which stated that total revenue amounted to Rs6.938 billion, with tax revenue contributing Rs5.617 trillion, consisting of federal taxes at Rs5.155 trillion and provincial taxes at Rs461 billion. Non-tax revenue amounted to Rs1.320 trillion, with federal revenue at Rs1.214 trillion and provincial revenue at Rs105 billion.
The total expenditure was Rs10.016 trillion, with current expenditure at Rs9.244 trillion, including mark-up payments of Rs3.582 trillion, defence expenditure of Rs1 trillion, pension payments of Rs486.696 billion, civil government expenses of Rs396.080 billion, subsidies of Rs524.432 billion, and grants to others of Rs617.503 billion. Development expenditure and net lending were at Rs1.060 trillion, with federal PSDP at Rs292.937 billion and provincial PSDP at Rs721.048 billion.
The overall budget deficit was Rs3.078 trillion, while the primary balance was positive at Rs503.774 billion. Domestic borrowing of Rs3.761 trillion financed the budget deficit, while external net stood at negative Rs682.809 billion. The government borrowed Rs1.958 trillion from banks for financing the fiscal deficit, in addition to non-bank borrowing of Rs1.802 trillion.
In terms of tax revenue, federal taxes of Rs5.155 billion consisted of direct taxes of Rs2.308 trillion, taxes on international trade (Customs) of Rs701.152 billion, sales tax of Rs1.901 trillion, and federal excise of Rs244.771 billion. Provincial taxes of Rs461.833 billion included sales tax on services of Rs287.980 billion, excise duty of Rs7.335 billion, stamp duties of Rs47.475 billion, motor vehicles tax of Rs24.873 billion, and other taxes of Rs94.170 billion. Non-tax revenue of Rs1.214 billion included mark-up (PSEs & others) of Rs85.235 billion, the dividend of Rs52.348 billion, profit PTA & others of Rs61.458 billion, surplus profit of State Bank of Pakistan of Rs371.186 billion, defence receipts of Rs14.25 billion, passport fee of Rs25.679 billion, discount retained on crude oil of Rs16.026 billion, royalties on oil/gas of Rs88.530 billion, windfall levy against crude oil of Rs19.159 billion, petroleum levy on LPG of Rs2.594 billion, Gas Infrastructure Development Cess of Rs7.303 billion, natural gas Development Surcharge of Rs11.728 billion, petroleum levy of Rs362.480 billion, and other revenues of Rs96.750 billion. Provincial non-tax revenue was Rs105.779 billion.
It is noteworthy that the provincial surplus amounted to Rs456 billion, with Punjab contributing Rs262 billion, Sindh Rs144 billion, KP Rs5.37 billion, and Balochistan Rs43.406 billion. Despite the provincial surplus, the persisting fiscal deficit underscores the need for effective measures to strengthen the country’s economic stability.
Copyright © 2021 Independent Pakistan | All rights reserved
