Every 1 out of 3 Rupees of Income spent on Debt Servicing in Last Ten Years

Previous government is last ten years spent one out of every three rupees of income on debt repayments. the same amount when seen on expenses side, from the total expenditure, every 2 out of 5 rupees of spending went on debt servicing in last ten years, says calculation done by a report compiled by Propakistani.

The report took data form the Ministry of Finance, which also says that PTI-led federal government has paid 40 percent of its resources for debt servicing, PML-N government spent almost 30 percent and PPP-led government paid 33 percent of total government earnings for debt repayments.

The Pakistan government, always, has limited resources to provide funds for the welfare of its citizens and has used 35 percent of resources only for debt servicing in the last ten years due to heavy borrowing from local resources, it has been learnt reliably here.

The Government of Pakistan, including federal and provincial governments, earn revenue through tax and non-tax income to run their daily official affairs. ProPakistani has compiled a report on debt servicing, expenditures, and total income of the government for the last ten years on the basis of the figures of the Ministry of Finance.

According to the report, the Pakistan government has paid Rs. 17.132 trillion for debt servicing from a total income of Rs. 49.112 trillion during the fiscal years 2013-2022. The total expenditures including development and non-development fund to run the federal and provincial government affairs and defense expenditures have touched Rs. 72 trillion during the period.

The PTI-led federal government has paid 40 percent of its resources for debt servicing during its tenure mainly due to the high-interest rate. The government has paid Rs. 9,578 billion for debt servicing out of a total national income of Rs. 23,950 billion during three years and nine months.

The report shows that the PTI-led federal government paid Rs. 2,118 billion for debt servicing out of a total income of Rs. 5,874 billion during the first nine months of the current fiscal year. The total expenditures of the government remained at Rs. 8,440 billion during the period. The government paid Rs. 2.750 trillion for debt servicing out of the total income of Rs. 6,903 billion during the fiscal year 2020-21.

The PTI-led government also paid Rs. 2,619 billion for debt servicing out of Rs. 6,272 billion in the fiscal year 2019-20. The total expenditures were recorded at Rs. 9,648 billion during the fiscal year. The PTI government has also paid Rs. 2,091 billion for debt servicing out of a total of Rs. 4,901 billion during the fiscal year 2018-19. The total expenditures of the government were recorded at Rs. 8,345 billion during the period.

The PML-N government during its previous five-year tenure has paid almost 30 percent of total resources for debt servicing. It paid Rs. 6,563 billion for debt servicing from a total income of Rs. 22,180 billion during its five-year tenure.

PML-N has paid Rs. 1,500 billion for debt servicing out of a total income of Rs. 5,228 billion during fiscal year 2017.18. It paid Rs. 1,348 billion from Rs. 4,937 billion during the fiscal year 2016-17, and Rs. 1,263 billion from Rs. 4,447 billion in 2015-16. Moreover, the federal government paid Rs. 1,304 billion for debt servicing out of Rs. 3,931 billion in 2014-15 and paid Rs. 1,148 billion out of a total income of Rs. 3,637 billion.

Lastly, the PPP-led federal government and the interim government paid 33 percent of total government earnings for debt servicing during 2012.13. They paid Rs. 991 billion for debt servicing out of total government earning Rs. 2,982 billion during the fiscal year 2012-13.



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