An employee counts Pakistani rupee notes at a bank in Peshawar, Pakistan August 22, 2023. REUTERS/Fayaz Aziz
The federal government’s total expenditure during the first half of the current fiscal year (July–December) reached Rs. 10.141 trillion, according to the Ministry of Finance.
The documents show a sharp increase in spending during the second quarter, with expenditures rising by Rs. 606.1 billion compared to the first quarter of the fiscal year.
As a result, the budget balance during July–September deteriorated significantly, declining from Rs. 2.119 trillion to Rs. 541 billion, reflecting mounting expenditure pressures.
Despite higher spending, the government recorded a primary surplus of Rs. 4.105 trillion during July–December, indicating fiscal consolidation before accounting for debt servicing costs.
During the six months, total government revenue amounted to Rs. 10.683 trillion. Tax revenue stood at Rs. 6.729 trillion, while non-tax revenue totaled Rs. 3.954 trillion.
Federal government revenue during the period was Rs. 6.160 trillion, while provincial revenue amounted to Rs. 568 billion, according to the Ministry of Finance.
Debt servicing remained the largest expenditure head, with interest payments totaling Rs. 3.563 trillion during the first half of the fiscal year. Defence spending during July–December stood at Rs 1 .044 trillion.
To meet financing requirements, the government borrowed Rs. 34 billion from external sources and Rs. 575 billion from domestic sources during the six-month period.
Other major expenditures included Rs. 504 billion on pensions, Rs. 380 billion on civil government operations, and Rs. 462 billion in subsidies.
On the revenue side, the government collected Rs. 822 billion through the Petroleum Development Levy, Rs. 8.8 billion through the CPP levy, and Rs. 25 billion from the carbon levy, according to official documents.
The State Bank of Pakistan transferred a profit of Rs. 2.428 trillion to the federal government during July–December.
Under the National Finance Commission Award, provinces received a total of Rs. 3.616 trillion during the current fiscal year so far. Punjab received Rs. 1.796 trillion, Sindh Rs. 901 billion, Khyber Pakhtunkhwa Rs. 586 billion, and Balochistan Rs. 322 billion.