Budget deficit touches 7.3 per cent of GDP

ISLAMABAD - Pakistan’s overall budget deficit during the last financial year ending on June 30, touched the peak of 7.3 per cent of the total size of the economy, which is more than what the new government announced in the federal budget.

Finance Ministry sources told TheNation that the gap between the government income and expenditure has further increased by a proportion of 0.3 per cent of the GDP, than what the new government announced at the eve of the federal budget.  

Finance Minister, Syed Naveed Qamar in his budget speech on June 11, 2008, said that for the financial year 2007-08 the government expenditure, current and development, would exceed its income, tax and non-tax revenue, by 7 per cent of the total size of the economy.

One of the top officials of the Finance Ministry said the deficit swelled against the expectations due to certain financial slippages in the federating units. “We try to convince the provinces to remain in parameters given by the federal government. The deficit further increased, as the provinces crossed the given boundaries”, he added.