Islamabad: Pakistan’s fiscal deficit increased by 43% and neared Rs1 trillion in the first quarter of the fiscal year 2023, the Ministry of Finance said in its quarterly report on Friday.
According to the summary of consolidated fiscal operation published by the Finance Division, the net revenue during the first quarter (July-September) stood at Rs2.01 trillion. However, the net expenditure amounted to Rs2.82 trillion during the first three months.
Compared to the same period last year, the difference between net revenue and expenditure stands at Rs80.8 billion this year.
As a percentage of the GDP, the net revenue dropped to 2.6% from 2.7% last year. Meanwhile, the net expenditure increased to 3.6% of the GDP from 3.4% last year. The increase in expenditure is mainly due to an increase in current expenditure, which is recorded at Rs2.53 trillion or 3.2% of the GDP, up from last year’s Rs1.96 trillion or 2.9% of the GDP.
Mark-up payments also increased to 1.2% of GDP from 0.9pc last year. The primary budget remained in an Rs14.5 billion surplus or 0.2% of GDP but is lower than last year when it stood at Rs18.5bn in the first three months or 0.3% of GDP.July_September_2022
It must be noted that the federal budget deficit stood at Rs1.02 trillion during the first quarter of FY23. Compared to the federal budget deficit, the provincial budget remained in a surplus of Rs21.8 billion.
The federal government’s expenditures increase to Rs1.991 trillion, 28% or Rs436 billion higher than the comparative period last year. The current expenditures of the federal government rose to nearly Rs1.85 trillion. There is an increase of 36% or Rs492 billion in the current expenses compared to the same period a year ago.
Pakistan’s budget deficit exceeds Rs 5.2 trillion in FY22
During the last fiscal year, Pakistan’s budget deficit had exceeded the target of 6.3% and soared to 7.9% or Rs 5.26 trillion.
The total revenue recorded during FY22 was Rs 8.035 trillion. During the year, the tax revenue, according to the finance ministry’s report, had stood at Rs 6.755 trillion. Similarly, non-tax revenue had amounted to Rs 1280 billion – federal Rs 1151 billion and provincial Rs 128.297 billion.
However, the total expenditures had amounted to Rs 13.295 trillion, including the current expenditure of Rs 11.521 trillion, of which mark-up payments were Rs 3.182 trillion – domestic Rs 2.828 trillion and foreign Rs 353.860 billion, defence expenditure Rs 1.411 trillion.