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Pakistan Economy & Development

Discussion in 'South Asia & SAARC' started by BlueOval, Jul 27, 2010.

  1. Butter Chicken

    Butter Chicken Captain FULL MEMBER

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    Ishaq Dar escaped after fudging data!

    ISLAMABAD: After raising false hopes of fiscal discipline, the federal government on Tuesday admitted that budget deficit in the first quarter of current fiscal year actually stood at Rs431 billion, higher by one-third than the amount announced last month.

    “Based on actual data, the overall fiscal deficit for July-September 2017 has been worked out at 1.2% of gross domestic product (Rs431 billion),” said the Ministry of Finance in a statement.

    On October 9, the ministry had sparked surprise by claiming that the budget deficit in the first quarter was 0.9% of GDP or Rs324 billion.

    The revised 1.2% deficit indicates that like the previous fiscal year the government will miss the annual 4.1% target by a wide margin this year too.
     
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  2. Butter Chicken

    Butter Chicken Captain FULL MEMBER

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    Defence, interest payments consume over three-fourths of tax revenue

    Defence spending and interest payments on domestic and foreign loans ate up Rs627.5 billion or more than three-fourths of the federal government’s tax revenues in the first quarter of this fiscal year, leaving very little fiscal space for any other functions of the state.

    However, the more worrying bit was that barring Federal Board of Revenue’s (FBR) tax revenue, the other two sources witnessed negative growth in collection during July-September.

    Debt servicing alone consumed Rs445.4 billion, which was 54% of the Rs824.5 billion revenues of the federal government during July-September period, according to the fiscal operations summary the finance ministry released on Wednesday.

    Spending worth Rs445.4 billion was in addition to the repayment of principal loans the government is retiring by taking more loans. For instance, the federal government retired Rs142.2 billion in foreign loans by taking new loans amounting to Rs150.1 billion.

    The interest payments were up by 7.5% when compared with the debt servicing cost in the same period of the previous fiscal year. An amount of Rs417.6 billion was spent on domestic debt servicing and another Rs27.8 billion on foreign debt servicing in the first quarter.

    Defence spending in the first quarter stood at Rs181.9 billion, consuming 22% of the federal government’s revenues.
     

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