ISLAMABAD: Fiscal deficit was recorded at 2.5 percent of the GDP - Rs 1137 billion - during July-December 2020, up by 0.2 percent over 2.3 percent - Rs 994.715 billion - for the same period a year before despite a provincial surplus of Rs 225 billion.
A summary of consolidated federal and provincial fiscal operation for the first six months of the current fiscal year uploaded by the Finance Ministry on its website showed that the government bridged the deficit financing of Rs 1,137.925 billion through external and domestic borrowing. External borrowing stood at Rs 454 billion whereas domestic borrowing of Rs 683.479 billion included non-bank borrowing of Rs 132.200 billion and bank borrowing of Rs 551.280 billion. However, the primary balance was in surplus by 0.7 percent of the GDP during the first six months.
The federal government transferred to the provinces under National Finance Commission (NFC) from tax collection in divisible pool Rs 1280 billion. The provinces provided Rs 255 billion surplus –Rs 146 billion by Punjab, Rs 44 billion by Sindh, Khyber Pakhtubkhaw Rs 19.7 billion and Baluchistan Rs 45 billion.
Total Revenue during the first six months was recorded at Rs3361 billion with tax revenue Rs 2455 billion. Federal tax collection was Rs2210 billion while provincial tax collection Rs 245.852 billion. The federal taxes included direct tax Rs 830 billion, taxes on international trade (custom) Rs 337 billion, sales tax Rs 918 billion and federal excise duty Rs 123 billion. The provincial taxes included the sales tax on services of Rs 140 billion, excise duty Rs 4 billion, stamp duties Rs 25 billion, motor vehicles tax Rs 12 billion and others Rs 62 billion.
Non-tax revenue of federal and provincial governments stood at Rs895 billion with federal non-tax Rs 848 billion and provincial Rs 47.2 billion.
The federal non-tax revenue included; (i) mark-up (PSEs & others) Rs43 billion; (ii) dividend Rs11 billion; (iii) profit of PTA Rs18 billion; (iv) surplus profit of State Bank of Pakistan (SBP) Rs 372 billion; (v) Defence receipts Rs 6.5 billion; (vi) passport fee Rs 6.9 billion; (vii) discount retained on crude oil Rs 4.3 billion; (viii) royalties on oil and gas Rs35 billion; (ix) windfall levy against crude oil Rs745 million; (x) petroleum levy on LPG Rs 1.6 billion; (xi) Gas Infrastructure Development Cess (GIDC) Rs9.5 billion; (xii) Natural Gas Development Surcharge Rs13 billion and Petroleum Levy Rs 275 billion and others taxes stood at Rs47 billion. The non-tax revenues of provinces recorded Rs47.2 billion from July to December 2020. Transfer to provinces under NFC stood at Rs 1,280 billion.
Current expenditure stood at Rs 4029.323 billion included; (i) interest payment Rs 1475.158 billion with Rs 1356.9 billion domestic debt servicing and foreign Rs 118.2 billion; (ii) defence spending Rs 486.585 billion (iii) pension Rs 210 billion; (iv) running of civil government Rs 195 billion;(v) subsides 128.9 billion;(v) grants to other Rs 265.2 billion.
Development spending and net lending stood at Rs 457.860 billion during the first six months of the current fiscal year with development expenditure Rs 414 billion and net lending Rs 43.7 billion. Federal PSDP stood at Rs 175 billion and provincial PSDP Rs 227 billion.
Copyright Business Recorder, 2021
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