Posted by Admin at 2020-08-13 | 00:55:47
ISLAMABAD: Pakistan's fiscal deficit in the financial year 2019-20 was 8.1 percent of the gross domestic product (GDP) due to lack of full utilization of the Prime Minister's economic relief and support package.
According to the data released by the Ministry of Finance, in the financial year ended June 30, 2020, the country's deficit stood at Rs 33.76 trillion, or 8.1% of GDP, the highest level in four decades.
According to the Dawn newspaper, this is the second year of the PTI government in which the country's fiscal deficit was more than 8%.
The finance ministry had projected a fiscal deficit of 9.1 per cent based on the Quad 19 relief package announced by the prime minister.
On the other hand, the International Monetary Fund (IMF) had estimated that the fiscal deficit would be 9.2% or Rs. There were additional costs involved.
The Finance Ministry said that apart from servicing loans, the deficit was 1.8 per cent of GDP or Rs 756.60 billion.
In this regard, a senior official of the Ministry of Finance said that despite the Ministry not imposing any restriction on expenditure, the actual expenditure remained lower than estimated. Was allowed.
The official said that ministries and departments could not afford to spend due to the initial lockdown due to the spread of the corona virus, thus saving Rs. 480 billion out of the Prime Minister's package of Rs. 1.24 trillion. Happened. In addition, the expenditure on development programs by the federal government remained low and out of Rs. 7 trillion 1 billion, only Rs. 4 trillion 68 billion was spent throughout the year while the remaining Rs. 2 trillion 33 billion was spent on GDP. 0.6%.
The Ministry of Finance said that the revenue collection of the Federal Board of Revenue (FBR) in the financial year 2019-20 was Rs. 39.98 trillion in response to the estimate of Rs. 55.50 trillion or Rs.
The total revenue was Rs. 62.72 trillion which includes tax revenue of Rs. 47.47 trillion out of which Rs. 43.34 trillion revenue was received from the federation while revenue of Rs. 413.60 billion was received from the provinces.
Read also: Deficit to widen this financial year, revenue target not achievable: Hafeez Sheikh
According to the Ministry of Finance, the non-tax revenue in the last financial year was Rs. 15.24 trillion against the target of Rs. 8 trillion 95 billion, of which Rs. 14 trillion 22 billion was received from the federation and Rs.
In addition, the total expenditure in the last financial year was Rs 96.48 trillion, including the current expenditure of Rs 85.32 trillion. The federal government spent Rs 06.16 trillion while the provincial governments spent Rs 25.16 trillion.
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