ISLAMABAD: The federal government’s budget deficit has increased to Rs. 809 billion mainly due to high debt servicing and low non-tax revenue during the first quarter from July to September of the current fiscal year 2022-23.
According to the fiscal operation report released by the Finance ministry, the budget deficit surged to Rs 809 billion during the first quarter of the current fiscal year.
According to fiscal operation, the total expenditure of the government surged by Rs. 579 billion to Rs. 2,826 billion from Rs. 2,247 billion mainly due to high debt servicing and defence budget expenditure during the first quarter of the current fiscal year as compared to the same period of the last fiscal year.
The current expenditures increased by Rs. 570 billion, from Rs. 1968 billion to Rs. 2538 billion, during the first quarter of the current fiscal year as compared to the same quarter of the last fiscal year.
The total revenue during the first quarter of the current fiscal year remained Rs 2,017 billion, including Rs 1782 billion in tax revenue and Rs 235 billion as non-tax revenue. The federal government earned Rs 1,634 billion through tax revenue and Rs. 202 billion through non-tax revenue during the first quarter of the current fiscal year.
The provincial governments have earned Rs 148 billion through tax revenue and Rs. 32.76 billion through non-tax revenue during the period.
Out of total non-tax revenue, the government has earned Rs. 47.5 billion through petroleum levy, Rs. 28.84 billion through markup (PSEs and others), and Rs. 24.65 billion through dividends.
During the period under review, the federal government borrowed Rs. 30.37 billion from external sources and Rs. 778 billion from domestic sources. Out of total debt, the government has obtained Rs. 487.87 billion from the non-banking sector and Rs. 290.5 billion from the banking sector during the first quarter of FY23. The government registered Rs. 145 billion primary budget surplus during the first quarter of the current fiscal year.
The data highlights that the debt servicing increased by Rs. 331 billion to Rs. 954 billion from Rs. 623 billion during the first quarter of the current fiscal year as compared to the same three-month period of the last fiscal year.
According to a report, the defence budget increased by Rs. 50 billion, from Rs. 263 billion to Rs. 313 billion, during the first quarter of the current fiscal year as compared to the same period of the last fiscal year.
The government has spent Rs. 171.38 billion for payment of pensions to retired employees, Rs. 102 billion for running the civil government, Rs. 92.7 billion for payment of subsidies, and Rs. 199 billion for other government expenditures.
The statistical discrepancy was recorded at Rs. 67.63 billion during the first quarter of the current fiscal year which was just Rs. 14 billion during the same period of the last fiscal year. The federal government has transferred Rs. 880 billion to provinces under NFC Award.
The total development expenditures were recorded at Rs. 219.25 billion during the first quarter of the current fiscal year. The federal government released only Rs. 67 billion for the federal development budget while provincial governments released Rs. 152 billion during the period.
The development expenditure and net lending were recorded at Rs. 220 billion during the first quarter of the last fiscal year.
