Pakistan’s fiscal deficit has recorded Rs. 438 billion (0.8 percent of the GDP) during the first quarter of the current fiscal year 2021-22. The fiscal deficit improved to 0.8% as compared to 1.1% in 1Q of FY22.
This is one of the lowest in the comparable period of the last four years of the current government.
According to the data released, the overall deficit in the first quarter was reported at 0.8% of GDP as compared to 1.1% of GDP deficit in FY2020-21, 0.7% of GDP in FY2019-20 and 1.4% of GDP in FY2018-19 – the first year of the current government.
The Finance Division released the fiscal operation report of the first quarter on Tuesday, according to which the total revenue was Rs. 1.8 trillion with tax revenue of Rs. 1.5 trillion and non-tax revenue of Rs. 275 billion.
The federal government’s collection in tax revenue was Rs. 1.39 trillion while the provincial governments’ collection stood at Rs. 134.7 billion. The former has collected Rs. 241.5 billion in non-tax revenue and the provincial governments collected Rs. 34 billion.
Meanwhile, the total expenditures in the first quarter were recorded at Rs. 2.24 trillion, with the current expenditures at Rs. 1.96 trillion and the development expenditure and net lending at Rs. 264.6 billion.
The markup payments were recorded at Rs. 622 billion, which includes Rs. 571 billion for domestic, Rs. 51 billion for foreign, Rs. 261.6 billion for defence affairs and services, Rs. 110.7 billion for pension, Rs. 89 billion for the running of the civil government, Rs. 74 billion for subsidies, and Rs. 169 billion for grant to others.
The report reveals that a statistical discrepancy of Rs. 14 billion was also observed from July to September.
Overall, the budget deficit recorded Rs. 436 billion whereas the primary balance was Rs. 184 billion in surplus.
The document states that the total federal share in tax revenue was Rs1.397 trillion, which includes Rs. 481 billion direct taxes, Rs. 221 billion taxes on international trade, Rs. 624 billion in sales tax, and Rs. 70 billion for FED.
Meanwhile, the total provincial share in tax revenue was Rs. 134.7 billion, which comprises sales tax on services as Rs. 66 billion, excise duty — Rs. 2 billion, stamp duty — Rs. 14 billion, motor vehicle duty — Rs. 9 billion, and the other taxes were Rs. 42 billion.
Conversely, the federal share was Rs. 241.5 billion out of the total non-tax revenue of Rs. 275 billion.
It included markup on PESs as Rs. 19.4 billion, dividend — Rs. 1.9 billion, SBP profit — Rs. 109 billion, PTA surplus — Rs. 30 billion, royalties on gas Rs. — 21.7 billion, defence receipts — Rs. 2.8 billion, passport fee — Rs. 6.1 billion, discount retained on crude oil — Rs. 3.5 billion, windfall levy against crude oil — Rs. 2.2 billion, gas infrastructure development cess — Rs. 6.5 billion, natural gas surcharges — Rs. 4.7 billion, petroleum levy — Rs. 13.3 billion, and the other taxes were Rs. 18.9 billion.
As per the document, the provinces’ non-tax revenue was recorded at Rs. 34.2 billion in the first quarter. Also, the PSDP releases from July to September recorded Rs. 262 billion, comprising Rs. 108 billion for federal and Rs. 153 for provincial.
The document also shows that the provincial budget surplus was recorded at Rs. 276.9 billion in the first quarter, which includes Punjab — Rs. 183 billion, Sindh — Rs. 60 billion, Balochistan — Rs. 37 billion, but Khyber Pakhtunkhwa’s budget was Rs. 3 billion negative. On the other hand, the total provincial revenue was Rs. 1.07 trillion while their expenditures were Rs. 800.1 billion. Overall, the provincial current expenditures stood at Rs. 640 billion.