Last year Pakistan’s budget deficit of the first quarter (July-September) of the financial year was noted at the number of rupees 438 billion whereas the recordings of this year are at rupees 324 billion. This year’s budget deficit is because of the vigorous tax collections and minimum spending.
Talking in terms of GDP the deficit generally decreased to 0.9% during the July to September quarter of the running financial year as compared to the last year which was recorded at 1.3 % during the same time frame. This decreased monetary deficit aligns well with the goals demarcated in the Fiscal Responsibility and Debt Limitations Act. Reduced public debt accretion leads to a reduction in the fiscal deficit.
The government prescribed budget for the monetary year 2017-18 of the deficit mark is 4.1 % of the GDP (Rupees 1.48 trillion). To keep the budget deficit within the defined target of 1.48 trillion government needs to take strict measures and collect taxes energetically.
The gap between revenues and expenditures amounts for the budget deficit. Last year the gap was 5.8 % of the GDP which was far above the defined target of 3.8%. The percentage recording of the revenues was 15.5 % of GDP (rupees 4.9 trillion) whereas the percentage recording of expenditures was at 21.3 % of GDP (rupees 6.8 trillion). These figures are noted from the papers of Ministry of Finance.
A meeting at the Ministry of Finance was held by the Finance Minister, Senator Ishaq Dar to discuss the monetary outcomes of the first quarter of the following year. According to the data presented by the secretary finance the first quarter has ended on good financial performance. As per the provisional data, the secretary said that the FBR taxes were actively collected. A total of rupees 765 was collected during the first quarter of this year clearly indicating a growth of about 20 % over the last year’s collection of the same quarter. The transferred provincial money also raised significantly because of raised tax collections. Last year rupees 416 billion was transferred this year so far rupees 570 have been transferred, together with debts.
The federal government is maintaining strict policies towards the expenditures, as mentioned during the meeting. The total spent amount is also reduced from last year’s first quarter rupees 914 billion to rupees 894 billion during the first quarter of this year. Reduction in expenditures is attained even after the investments in development projects.
Finance Minister expressed his satisfaction with the attempts taken for acquiring the defined fiscal budget goals in the first quarter. He further asked the officials to maintain their prudent work and told that to make sure to attain the financial goals in the left three quarters of the present financial year.
The Senator also praised on the restraint of inflation, increased growth in the large-scale productions, decreased interest rates, increased exports and settlements.
Ishaq Dar forced upon the requirement of reducing poverty and unemployment by keeping a focused approach on the acceleration of economic progress.
The meeting was also attended by the Ministry of Finance senior officials.