ISLAMABAD-All four provincial governments recorded budget surplus of Rs218 billion during the first quarter (July to September) of the current fiscal year, which helped the federal government in restricting its fiscal deficit to 1 percent of the gross domestic product (GDP).
The four provincial governments collectively recorded budget surplus of Rs218.022b during July to September period of FY2023, as their expenditures remained at Rs832.67b as compared to the revenues of Rs1050.69b.
The provincial governments’ surplus budget showed that they had not utilized their budgets on development activities in the provinces. They received major portion of their revenues from the federal government under the National Finance Commission (NFC) award. The provinces could use the revenues in development projects, which would help in generating economic activities and employment generation. However, the provinces as like past have once again failed to utilize their annual budget helping the federal government in restricting its budget deficit.
According to data of ministry of finance, provincial governments had received Rs880.35 billion from the federal government under the NFC in the first quarter of year 2022-23. Meanwhile, four provinces had collected taxes of only Rs148.162 billion, provincial non-tax collection recorded at Rs32.76 billion.
On the other hand, provinces had spent Rs832.67 trillion and had returned Rs218 billion to the federal government to restrict its budget deficit. The country’s budget deficit – the gap between federal income and expenditures – was recorded at Rs808.7 billion during July to September period of 2022-23. Primary balance, which is the difference between government’s revenue and its non-interest expenditure, recorded a surplus Rs145.26 billion, according to the latest data of the ministry of finance.
Under the 7th NFC award, the federal government is bound to transfer 57.5 percent of the resources to the four provinces. The provincial governments get shares from the federal government under NFC award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.
PUNJAB
Punjab province had recorded budget surplus of Rs125.22 billion during the first quarter of current fiscal year. The expenditures registered at Rs391.8 trillion as compared to the revenues of Rs517 billion. The major chunk of the revenues came from the federal government under divisible pool. The Punjab government had received Rs427.74 trillion from the federal government during first quarter of the current fiscal year. Meanwhile, the province had generated only Rs72.83 billion from its own sources and non-tax collection recorded at Rs19 billion.
SINDH
The province had shown budget surplus of Rs60.294 billion, as it expenditures were recorded at Rs228.17 billion compared to the revenues of Rs288.46 billion. Sindh government has received Rs214.04 billion from the federal government during the period under review. The Sindh government collected Rs61.51 billion as tax, Rs4.4 billion as non-tax collection and federal loans and grants stood at Rs8.49 billion.
KHYBER PAKHTUNKHWA
The KP’s budget was in surplus of Rs2.956 billion. Expenditures of this province had registered at Rs149.75 billion as compared to the revenues of Rs152.031 billion. The KP’s tax collection was recorded at Rs9.544 billion in the last year and non-tax collection remained at Rs7.9 billion. The province has received Rs145.767 billion from the federal government under NFC during the first quarter of the current fiscal year.
Balochistan
This province had also recorded surplus budget of Rs29.548 billion. Balochistan expenditures had remained at Rs63.61 billion as compared to the revenues of Rs93.158 billion. Balochistan’s tax collection had recorded at Rs4.28 billion, non tax collection at Rs1.412 billion and federal loans and grants stood at Rs4.688 billion. The province has received Rs82.798 billion from the federal government under NFC.