The federal government’s expenditure again exceeded its income during the first nine months of the current fiscal year, pushing the budget deficit to Rs856 billion.
According to official documents, heavy spending on debt servicing, defence, pensions and subsidies remained a major pressure on public finances.
From July to March, the government’s total revenue stood at Rs14,799 billion. During the same period, total expenditure crossed Rs15,665 billion, resulting in a budget deficit of Rs856 billion.
Provincial surplus lowers fiscal deficit
The documents show that the provincial surplus helped limit the overall fiscal deficit to Rs541 billion. A primary surplus was also recorded during the July-March period, with one figure placing it at Rs491 billion and another at Rs4,091 billion.
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FBR tax collection crosses Rs10,000bn
The Federal Board of Revenue collected Rs10,166 billion in taxes during the first nine months of the fiscal year.
More than Rs1,205 billion was collected from the public in the form of levy as non-tax revenue, while another figure mentioned in the documents puts levy collection at over Rs1,250 billion.
Levy collection rises sharply
Levy collection increased by Rs371.33 billion compared to the same period of the previous fiscal year. During the corresponding period last year, Rs834 billion had been collected in the form of levy.
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The government spent Rs4,947 billion on interest payments on loans from July to March. The heavy cost of debt servicing remained one of the largest components of overall expenditure.
Defence, development, pensions, subsidies
During the first nine months, Rs1,690 billion was spent on defence. Development spending stood at Rs551 billion, while pension payments were reported at Rs754 billion. Another figure in the report mentioned pension spending at Rs744 billion.
The government also spent Rs632 billion on subsidies during the period.
Under the National Finance Commission award, Rs5,630 billion was transferred to the provinces. The documents also show that loans worth Rs856 billion were obtained during the first nine months of the current fiscal year.
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