Q1 budget deficit soars to 1 pc of GDP vs. 0.7 pc of GDP year-on-year – Business & Finance
ISLAMABAD: The government closed the first quarter of the current financial year with a budget deficit of 1% of GDP against 0.7% of GDP for the same period a year earlier despite a provincial surplus of 218 billion rupees and a gap statistic of 67.6 billion rupees.
According to a summary of the consolidated budget operation for July-September 2022-23 published by the Ministry of Finance, the budget deficit during the first quarter stood at Rs808.734 billion or 1% of GDP against 0.7% or Rs428.491 billion for the same period of the last fiscal year and primary balance of Rs 145.258 billion. The financing of the budget deficit was covered by external and internal resources with external borrowings (net) of 30.367 billion rupees and domestic borrowings (net) of 778.367 billion rupees – non-bank borrowings of 487.869 billion rupees and bank loans of 290.498 billion rupees. .
The total revenue collected during the reporting period was 2.016 billion rupees against the total expenditure of 2.825 billion rupees and hence the deficit was 808.734 billion rupees. Revenue of Rs 2.015 billion comprised tax collection of Rs 1.782 billion and non-tax revenue of Rs 234.919 billion. Federal tax collection amounted to 1.633 billion rupees and provincial tax collection to 148.162 billion rupees. Federal non-tax revenue collection was recorded at 202.159 billion rupees and provincial at 32.760 billion rupees
Total expenditure during the first quarter of 2.825 billion rupees included current expenditure of 2.538 billion rupees to 1.832 billion federal rupees and 705.601 billion provincial rupees and development expenditure of 219.968 billion rupees
In current expenditure, surcharge payments 953.992 billion rupees – 835.135 billion domestic rupees and 118.857 billion foreign rupees, defense expenditure 312.928 billion rupees, pensions 171.382 billion rupees, operation of the civil government 102.327 billion rupees, subsidies 92.706 billion rupees, and grants to other Rs199.175 billion.
Public Sector Development Program (PSDP) expenditure and net lending amounted to Rs. at 721 million rupees. A statistical discrepancy of 67.631 billion rupees was recorded in the first quarter of the current financial year.
The Federal Board of Revenue (FBR) tax collection was 1633 billion rupees, including direct tax collection of 682.675 billion rupees and indirect tax collection of 951.221 billion rupees. The collection of international trade tax (customs) was 229.957 billion rupees, sales tax 642.144 billion rupees and federal excise duty 79.120 billion rupees. Collection of provincial taxes of Rs148.162 billion included; (i) sales tax on services of Rs 85.342 billion; (ii), an excise duty of Rs 2.201 billion; (iii) Rs14.994 billion stamp duty and Rs 8.669 billion motor vehicle tax in addition to other Rs36.956 billion.
Federal non-tax revenue of Rs 234.919 billion included; (i) mark-up (PSE and others) Rs28,844; (ii) a dividend of Rs 24.651 billion; (iii) profit of PTA and others Rs 13.076 billion; (iv) defense revenue of Rs 3.794 billion; (v) passport fee of Rs 6.717 billion; (vi) rebate withheld on crude oil of Rs 4.304 billion; (vii) oil/gas royalties Rs20.672 billion; (viii) exceptional levy on crude oil of Rs 4.919 billion; (ix) petroleum levy on LPG Rs 702 million; as well as gas infrastructure development of 3.007 billion rupees and natural gas development surcharge of 5.485 billion rupees, while oil royalty collection was 47.476 billion rupees and others 38.512 billion rupees.
Surplus created by the province of Rs218.022 billion, Punjab of Rs125.223 billion, Sindh Rs60.294 billion, Khyber-Pakhtunkhwa Rs2.956 billion and Balochistan Rs29.5 billion.
Copyright Business Recorder, 2022