In terms of the percentage of the GDP٫ it has been projected that Pakistan overall budget deficit will be narrowed to 5.8 percent from 6.3 percent ofthe GDP.
It is pertinent to mention here that the previous government had rebasedthe size of the economy from Rs. 53,867 billion to Rs. 63,978 billion. Thishas provided a cushion to the government for reducing the budget deficit interms of percentage of GDP.
The Finance Ministry estimates that the overall budget deficit will go upby Rs. 327 billion to Rs. 3,747 billion because of the low non-tax revenueprojection for the current fiscal year.
According to the Mid-year Budget Review report compiled by the FinanceMinistry٫ in real term٫ the overall budget deficit has been projected atRs. 3,747 billion against the original estimate of Rs. 3,420 billion forthe current fiscal year.
According to the report٫ the federal budget deficit has been projected atRs. 4,317 billion compared to the original estimate of Rs. 3,990 billionfor the current fiscal year. However, the provincial surplus of Rs. 570billion will reduce the projected ceiling of the budget deficit for thecurrent fiscal year.
The overall primary budget deficit has been revised from Rs. 360 billion toRs. 687 billion during the current fiscal year.
According to the report, the overall federal expenditures have been revisedto Rs. 8436 billion from Rs. 8,487 billion during the current fiscal year.The current expenditures have been revised upward by Rs. 149 billion to Rs.7,672 billion from Rs. 7,523 billion.
Read Top Stories
The report says that the increase in current expenditure is expected due torising payments of debt servicing, energy subsidies, social safety netprogram, and COVID-19 related expenditures.
In the first half of the current fiscal year, an amount of Rs. 212 Billionhas been provided for procurement of the coronavirus vaccines and ancillaryservices against which an expenditure of Rs. 196 billion has been incurredby respective departments.
The international development partners including World Bank, ADB, IMF, andother bilateral/ multilateral donors have provided all kinds of support tothe government in handling the pandemic.
The Finance Ministry has also revised the ceiling of the allocated PSDPsize from Rs. 900 billion to Rs. 700 billion but net lending will remainthe same at Rs. 64 billion.
The Finance Ministry further said that the gross federal revenue receiptswill be Rs. 7,718 billion, Rs. 191 billion less than the original estimateof Rs. 7,909 billion. Out of the total revenue, the ministry has revisedthe target of the FBR income from Rs. 5,829 billion to Rs. 6,100 billionfor the current fiscal year.
