Security spending pushes up budget deficit by 62pc
ISLAMABAD:
Marked by over Rs93 billion higher grants for security-related spending, Pakistan’s current expenditure rose by more than 15 per cent and the budget deficit by about 62 per cent during the first half of the current fiscal year.
According to provisional data on half-yearly (July-Dec) budgetary operations released by the finance ministry, the government’s current expenditure stood at Rs1,058.6 billion against Rs919 billion during the same period in last fiscal year, showing an increase of 15 per cent.
The normal defence expenditure rose by 12 per cent to Rs166 billion during the first six months of the current fiscal from Rs148 billion of the same period last year.
A finance ministry official said that additional expenditure on security operations in Malakand division and the tribal region had separately been made part of grants that increased by 232 per cent (Rs93.4 billion) to Rs134 billion in six months of the current fiscal year. The figure for the corresponding period during the previous year was Rs40 billion.
Spending on public order and safety affairs also went up by 48 per cent to Rs166 billion from Rs139 billion.
This was, however, more than the amount compensated through over 292 per cent increase in profits earned by State Bank, which stood at Rs135 billion this year against last year’s Rs34.4 billion - a spike of Rs101 billion. Yet the government’s overall budget deficit during the first six months crossed Rs403 billion - a rise of 61.6 per cent over last year’s Rs249.5 billion.
The country’s total revenue during the first half of the current fiscal year stood at Rs910 billion, up by about nine per cent, against last year’s Rs834.5 billion. This included tax revenue of Rs659 billion, up by 14 per cent. But provincial tax revenue was down by 7.7 per cent when compared with the same period last year.
Interestingly, the federal revenue collection through direct taxes improved by a negligible 0.6 per cent in the first six months while indirect taxes increased by 23 per cent or over Rs79 billion.
Revenue collection through petroleum levy in six months stood at Rs52 billion, up by about 80 per cent, against Rs28.8 billion of the same period last year. The government collected about Rs87 billion on account of surcharges, levies and royalties on oil and gas against Rs69 billion of the same period last year, showing an increase of 26 per cent. This, however, did not include 16 per cent general sales tax on the sale of all oil and gas products.
The development expenditure and net lending in six months stood at Rs239.4 billion against Rs133 billion in the same period last year, showing an increase of 80 per cent or Rs107 billion. Spending under the Public Sector Development Programme amounted to Rs175.5 billion against Rs122 billion of last year, showing an increase of about 43 per cent. The federal PSDP expenditure increased by 41 per cent to Rs103 billion while provincial PSDP spending improved by 49 per cent to Rs73 billion.
Total debt-servicing during the first six months of the current fiscal year stood at Rs294 billion against Rs300 billion in the same period last year.