ISLAMABAD – PTI government requires Rs 1.9 trillion for fiscal deficit insix months of 2020.
The government is looking to borrow Rs. 1.9 trillion for financing itsfiscal deficit from January to July 2020. This was disclosed to theNational Assembly on Thursday.
In a written reply to a question by Muhammad Afzal Khokhar during questionhour, the Minister for Finance and Revenue said that the domestic debt isRs. 0.8 trillion and external debt is Rs. 1.1 trillion.
He said the government borrowing requirement is dictated by the gap betweenrevenue and expenditure. He said that government borrowing is also requiredfor resource-intensive infrastructure projects which facilitate economicgrowth and allow achieving social development goals.
In response to another question by Mr. Khokhar, the National Assembly wasinformed that the government intends to pay back Rs. 12,261 billiondomestic and $28.2 billion external debt by the expiry of its term in 2023.
He further said that total debt and liabilities increased by Rs. 10.33trillion during FY19. However, he said that it is important to highlightthat total debt and liabilities include government debt as well as theborrowing of other sectors which is not the liability of the government ofPakistan such as the private sector, banks, foreign exchange liabilities,etc.
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He said that although total debt and liabilities of the country hadexceeded the size of GDP at end June 2019, however, it is important tomention that total public debt stood at 84.8 percent of GDP, thus remainingbelow 100 percent as observed at the start of the year 2000.Break up of Increase in total public debt
1. Rs. 3.44 trillion was for the financing of fiscal deficit 2. Rs. 3.03 trillion was due to rupee depreciation 3. Rs. 1.28 trillion was due to an increase in cash balances of the government and accounting policy relating to long-term bonds.
Hence, the actual borrowing of the government was Rs. 3.44 trillion duringFY19, he said.
