Pakistan Tax collection witnesses over 20% growth: FBR
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ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs 765 billion during first quarter of the current fiscal year as compared to the corresponding period of the last year, showing growth of over 20 per cent.
“As per the provisional data, the FBR tax collections remained robust. Total collection of Rs 765 billion during July-September 2017 demonstrated growth of over 20 per cent as compared to the collection in the first quarter of last year,” Secretary Finance Shahid Mehmood told a meeting here Monday.
Finance Minister Senator Mohammad Ishaq Dar chaired the meeting to review fiscal performance of the first quarter (July to September) of the current fiscal year, said a press release.
The secretary presented provisional data on fiscal operations during the meeting, and stated that the first quarter had closed on strong fiscal performance. Because of higher tax collections, the secretary said the amounts transferred to the provinces also increased substantially.
“As compared to transfers of Rs 416 billion last year, the total transfers this year have so far reached Rs 570 billion, including arrears,” he said. The meeting was informed that on the expenditure side, the federal government maintained strict fiscal discipline.
As against total expenditure of Rs 914 billion in the first quarter last year, the federal government spent Rs 894 billion in the first quarter this year, despite the fact that increased investments were carried out through the development budget.
The overall budget deficit was recorded at Rs 324 billion in the first quarter this year as compared to Rs 438 billion in the same period last year, which was made possible through robust tax collections and lower expenditure.
In terms of Gross Domestic Product (GDP), the overall deficit decreased to 0.9 per cent during the period under review as compared to 1.3 per cent last year.
“Reduced fiscal deficit means lower public debt accumulation which supports alignment to targets defined in the amended Fiscal Responsibility and Debt Limitations Act,” the secretary said. The finance minister expressed satisfaction over the growth in revenue collections by the FBR and appreciated the measures taken to achieve fiscal prudence in the first quarter.
Ishaq Dar reiterated the government’s resolve of continuation on the path of fiscal discipline. He directed officials to ensure achievement of fiscal targets in the remaining three quarters of the current fiscal year.
While commending inflation containment, low interest rates, positive and strong growth in large-scale manufacturing, recent increase in exports and remittances, the finance minister stressed the need to maintain focus on acceleration of economic growth for continued reduction in unemployment and poverty. Senior officials of the Ministry of Finance also attended the meeting.
