ISLAMABAD: Minister of State Engr Muhammad Baligh ur Rahman on Thursday told the Senate that the increase in net public domestic debt was only 38.7% during the last 3 fiscal years, whereas the net public domestic debt had increased by 149% during 2008-09 to 2012-13.
Speaking in the Upper House, he clarified that the public domestic debt has not increased by 80 percent.
Although, he said, the pace of debt accumulation by the government is under control, adding that the government is taking keep public debt within sustainable limits.
The government, he said, has achieved macroeconomic stability in last three years, through reducing energy shortages, higher revenue collection, wider tax significant reduction in fiscal deficit and infrastructure development.
Fiscal consolidation are on track to reduce the reliance on loans efforts since government has successfully curtailed the fiscal deficit from 8.2 percent of GDP in 2012-13 to 4.6 percent in 2015-16 due to enhanced revenue mobilization and prudent expenditure management, he added.
He said, fiscal consolidation will continue as the government has made the Fiscal Responsibility and Debt Limitation Act's defining the ceiling for the Federal Government budget deficit at 4 percent GDP(excluding foreign grants) during the period 2017-18 to 2019-20 and 3.5 percent of GDP thereafter.
Baligh, replying to a question said that accordingly, total public debt shall be reduced to 60 percent of GDP until 2017-18, and thereafter a 15-year transition period has been set towards reduction of debt-to-GDP ratio at 50 per cent.
Comments
Comments are closed for this article.