ISLAMABAD

Pakistan’s budget deficit has been recorded at Rs 651.8 billion (2.2 percent of the GDP) during first half (July-December) of the ongoing financial year (FY2014-15)

The country’s expenditures had been recorded at Rs 2400.9 billion as against the revenues of Rs 1749.1 billion leaving deficit at Rs 651.8 billion (2.2 percent of the GDP) during July-December of FY2015. The government had restricted the budget deficit at 2.2 percent during first half of FY2015 due to the provincial governments’ surplus budgets and reduction in spending on development projects.

The deficit could surge during second half (January to June) of the current fiscal year due to the extraordinary expenditures on implementing national action plan on terrorism as well as the rehabilitation of temporary displaced persons. Finance Minister Ishaq Dar last month already warned that fiscal deficit, a gap between government’s revenues and expenditures, might increase than the budgeted target of 4.9 percent for FY2015 due to the aforesaid additional expenditures.

However, International Monetary Fund (IMF) did not agree with Pakistan for revising the budget deficit target from 4.9 percent of the GDP. The government has assured the IMF that it will apply a combination of expenditure cuts and additional revenue measures to remain within the budget deficit target of 4.9pc of GDP. The cut will be applicable only to the development budget, which will be reduced by at least Rs75 billion, roughly 15pc.

According to the data released by the Finance Ministry here on Monday, the break-up of country’s expenditures showed that government spent Rs 572.68 billion on interest payment, Rs 959.11 billion on General Public Services, Rs 329.63 billion on Defence Affairs and Services, Rs 72.96 billion on Superannuation Allowances and Pension, Rs 43.76 billion on Public Orders and Safety Affairs and Rs 269.41 billion on public sector development programme of federal as provincial governments.

Similarly, the revenue’s break-up of Rs 1749.1 billion revealed that government had collected Rs 1361.114 billion as revenue and Rs 387.97 billion as non-revenue.

The breakup of non-revenue showed that Rs 20.67 billion as collected as foreign grants, Rs 39.52 billion as dividend, Rs 137.5 billion as surplus profit of State Bank of Pakistan, Rs 80.15 billion as defence (coalition support fund), Rs 7.2 billion as passport fee, Rs 5.38 billion as Discount retained on crude price and Rs 40.91 billion as Royalties on oil and gas.

The provincial governments had recorded surplus budget worth of Rs 143.3 billion during first half (July to December) of the current financial year that helped the federal government to restrict the budget deficit at 2.2 percent of the GDP.

The four provincial governments had recorded expenditures worth of Rs 896.99 billion during July-December 2014-15 as against the revenues of Rs 753.66billion leaving budget surplus at Rs 143.3 billion.

The Punjab government had made expenditures worth of Rs 351.4 billion against the revenue of Rs 412.55 billion leaving budget surplus at Rs 61.11 billion during first half of the current fiscal year. Meanwhile, the Sindh government had recorded budget surplus of Rs 41.38 billion as expenditures stood at Rs 208.47 billion as compared to the revenues of Rs 249.85 billion. Similarly, the Khyber Pakhtunkhwa government’s expenditures registered at Rs 125.48 billion against the revenues of Rs 141.38 billion leaving budget surplus at 15.89 billion rupees. Meanwhile, the Balochistan government had recorded budget surplus of Rs 24.93 billion, as expenditures stood at Rs 68.28 billion as compared to the revenues of Rs 93.22 billion.