ISLAMABAD – A record high budget deficit of Rs1.481 trillion for ninemonths of the current fiscal year has been recorded which is even higherthan the annual target.
The overall budget deficit – the gap between income and expenditure –widened to 4.3% of gross domestic product (GDP) or Rs1.481 trillion inJul-Mar 2017-18, according to the Ministry of Finance that released aconsolidated summary of federal and provincial budgetary operations onMonday.
In absolute terms, it was the highest-ever budget deficit that Pakistanrecorded for Jul-Mar in any fiscal year. In terms of total size of nationaleconomy, the 4.3% deficit was the highest in five years and even higherthan the 4.1% annual target that former finance minister Ishaq Dar had setin June last year.
It seemed that the Ministry of Finance did not exercise control overexpenses and kept sanctioning expenditure requests without having thefiscal framework in mind. One reason for such a lax control was the postingof inexperienced bureaucrats in the ministry.
The Rs1.481-trillion budget deficit came despite the fact that fourprovinces of the country showed a cash surplus of Rs174 billion in thefirst nine months. Excluding provincial savings, the federal budget deficitwould have jumped to Rs1.65 trillion.